House of If You Can Draw A Straight Line

Discussion in 'Journals' started by dbphoenix, Nov 22, 2014.

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  1. Please don't create unnecessary posts if you do not wish to contribute, comment or critique on Db's analysis or SLA.
     
    #31     Nov 25, 2014
  2. dbphoenix

    dbphoenix

    I'm going to assume that those who are interested in this saw yesterday that traders left that little range noted in post #27 and sought value to the upside. They then dropped back through it and sought value to an equivalent distance to the downside. Finding insufficient interest there, they all returned to the middle and stayed there for the rest of the day. This is not unusual after a period of volatility. And there's the holiday . . .
     
    #32     Nov 26, 2014
  3. Scaleout.Scalper

    Scaleout.Scalper Guest

    Happy Thanksgiving.

    ndx.jpg
     
    #33     Nov 26, 2014
    Ditch likes this.
  4. dbphoenix

    dbphoenix

    And for comparison's sake:

    upload_2014-11-26_16-2-5.png
     
    #34     Nov 26, 2014
  5. dbphoenix

    dbphoenix

    upload_2014-11-27_9-3-20.png

    upload_2014-11-27_9-3-39.png

    In case it isn't obvious, I should point out the pre-market range between 17.5 and 20.
     
    Last edited: Nov 27, 2014
    #35     Nov 27, 2014
  6. nopac

    nopac

    Happy Thanksgiving to everybody.

    I'm thankful for Db explaining all this stuff to us. Thank you Db!
     
    #36     Nov 27, 2014
  7. dbphoenix

    dbphoenix

    upload_2014-11-27_16-42-39.png

    See 15m chart two-up for overnight context.
     
    #37     Nov 27, 2014
  8. dbphoenix

    dbphoenix

    upload_2014-11-28_14-52-51.png

    upload_2014-11-28_14-53-27.png

    upload_2014-11-28_14-53-52.png
     
    #38     Nov 28, 2014
  9. k p

    k p

    I love how you're almost giving it away, but just put a big circle around the important part. :)

    Where does your R level of 32 to come from? I see that the overnight high from after midnight was 31.50... this is splitting hairs though, but the PDH was in fact 32. So I'm just curious to ask if there is a specific reason why you have exactly 32, favoring the PDH or the OH.

    On my attached chart, I see reasons for going long at A and B. These of course are unfortunately stopped out. That spike down to C even breaks below the support level that we seem to be forming after the open, and this is a spike below the range before the open as well, so it appears that this spike down might shake out many longs. This is what I'm struggling with now... how to prevent getting stopped out from these minor penetrations below where I think support might be or a previous swing low, but not having the stop loss so wide that I can't keep losses small.

    The third long on my chart at D, which is also where you indicate, is beautiful because we have now cleared the somewhat choppy range of the first 30 minutes after the open. So even if those first two trades were taken and scratched, this last one was easily a 10 point move to more than make up for the scratches. (I've had it drilled into my head to think in terms of a series of trades, and there really is nothing better than a RET entry, especially one based on context.)

    Is there any reason though why the first two longs on my chart are problematic? Would you first want to clear that high of 35 that printed shortly after the open before considering a long?

    EDIT: Opppss.. the first chart outlines your R level at 32.... so never mind about that question.
     
    #39     Nov 28, 2014
  10. MadeMan

    MadeMan


    your AB longs .. are actually buying at swing highs and into pot. res. levels... you should always look out for long trades on swing lows.. risk wise.. and on swing highs for short trades...

    your D trade is a perfect example... just compare.. dont you see it ?


    A and B could work out.. but is it worth the risk ?

    look at C .. aint that some good looking PA... ???
     
    #40     Nov 28, 2014
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