Well... I do think we have to be careful about not taking trades just because of "possible" R levels. Here, the only resistance was that one spike up to the swing high. These trades would after all also fill above the resistance level of 32 as outlined. When buying in the trough of a retracement to go long, you are always therefore buying below the swing high where price just retraced from. Of course some levels are more prominent than other, and I think Db has also said before that each rejection of a level strengthens the prominence of that level. In this case, its only one swing high up to 35. Now it is true that that long at D was in fact the better long, but when you only have what you see going into A, my initial analysis says that perhaps its not a bad place to put a long. The fact that it didn't work out, I guess based on where your exit is though, perhaps makes no difference in that it was a legit trade. What do you like about C though that you call it good looking PA? Is it the fact that going down was quickly rejected? Its funny because had I taken the long at A or B, I would initially be thinking how unfortunate that I got stopped out, but then the fact that price move up again so quick should make you look for longs right away again, but certainly this time above 35 as now you want to wait for price to exit this range of 28 to 35. This of course makes the long at D so attractive, but going into A or B of course, I don't think there was enough to go on to say those shouldn't be taken at the time. Perhaps I'm not exactly understanding what you're saying though with your reasons for not taking longs at A and B?
A & B are reasonable in real time but I have trouble seeing how C would entice me for a long. Demand wasn't strong enough and as a result price ended up at C. This thread is more about straight line method and I would only attempt long around D not around C. Lets not try to put the cart before the horse. Now don't get me wrong, but trading EOD is so much easier as one can contemplate, discuss, double check with Db and then place a trade. Intra-day has no time to do all that. Gringo
Trade A was not something I considered. Looked more like a data problem. Trade B was a pullback to the pre-open range as I had drawn it. On the 1 min, there was a small line break and pullback for entry.
Been reading a lot on SLA/AMT, looking forward to participating. Hindsight of coarse. But, trade B could have fit SLA if it was instead a short at about 847 because of a DL break. At worst a B/E I think. D is a great entry having broken the range and retested that upper extreme. Very low risk to to find out if it works.
Supply and demand perspective? At the 930 open, price made a swing low, and climbed 3 minutes later to a swing high at 0833, quickly rejected. Price then tanked forming a double bottom, and didn't go further. Price made a lower high around A, and didn't go further. No demand yet at these prices. 840 swing low. Demand was in higher than the double bottom. Higher high after A, but not over markets opening high. Demand not yet at these higher prices. 0843 swing low. Demand again, at even higher prices putting in a higher low. With demand increasing, trade B could have been taken, and would have been a small loss. Assuming one uses stops to limit risk. Supply immediately entered here and price put in a new swing low 0851, quickly and strongly rejected. There seem to be many supply/demand points hinting at an up day, especially with rejection at C. So without SLA lines, trade B was a good signal right after a higher low. Still in a range though, I wouldn't take it. Would you? I guess with analyzing S/D my position on previous post changed a bit.