If You Can Draw A Straight Line . . .

Discussion in 'Journals' started by dbphoenix, Jun 28, 2013.

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  1. DbPhoenix,

    Here is one to review based on what I understand so far on your thread.

    Lostinspace
     
    #121     Jul 3, 2013
  2. niko

    niko

    Thank you for your comments!
     
    #122     Jul 3, 2013
  3. dbphoenix

    dbphoenix

    Given that your chart is nearly a year-and-a-half old and your prices are off by about 40pts, you may want to include at least a daily and hourly chart to provide context in order to attract responsible comments.

    As far as I can tell, all of this activity is taking place below support and inside a prior trading range. That gives a different perspective on what should be done and how.
     
    #123     Jul 3, 2013
  4. niko

    niko

    Thanks for your comments. I was performing some backtesting and ran into that situation that has brought me trouble on RT. I mean, the break of a short term SL, a HL but price then finds supply before breaking the longer term SL. The thing is sometimes it breaks through the SL and sometimes it does not. I guess is because the context favors the Break or the continuation, and you are right that is part of what I am missing.
     
    #124     Jul 3, 2013
  5. dbphoenix

    dbphoenix

    Again, whether this is tradeable or not depends on context. If price has fallen below support-now-resistance, the primary focus is shorting opportunities unless and until buyers are able to push price back above resistance. Otherwise, you're just fighting the tide and trading counter-trend. The counter-trend trade might work, if you're lucky, but it's a bad habit.

    Trade with the wind at your back, not in your face.

    As for TW's comments, there appears to be an immediately-preceding TR from about 38 to 68, at the time. If this is the case, then 38 represents a test of the bottom of that TR and a legit long entry off a secondary test. The "heavy selling" comment that TW makes is actually heavy buying, i.e., preliminary support. If there were not heavy buying, volume would not be nearly so high. This is the selling climax which, as you know, need not and often does not come at the bottom.

    As to the secondary test, there is none that is easily recognizable, but there is a six-minute hesitation before price continues its move upward. This hesitation does not represent as comfortable an entry as a true secondary test, but it'll do as long as your entry is above it and not in it.

    As for a "No Demand Zone", there is no such thing. If there's no demand, there's no transaction. If there's no transaction, there's no print.
     
    #125     Jul 3, 2013
  6. NoDoji

    NoDoji

    As an intraday scalper, here's how I trade price action, using the 1min chart for precision entries, and looking to position in the direction of the larger trend/channel (in this case, long), "fly fishing" for a breakout.

    The key takeaways for beginners are:

    1. Patience...let the pressure build; the 2nd mouse gets the cheese

    2. Trade in the direction of the overall trend/channel until previous S/R
    becomes the opposite

    (The time on the chart is Pacific.)

    [​IMG]
     
    #126     Jul 3, 2013
  7. NoDoji

    NoDoji

    And the end result:

    [​IMG]
     
    #127     Jul 3, 2013
  8. dbphoenix

    dbphoenix

    Good one. I haven't heard that in a while. This is a nice encapsulation of what I was saying earlier about letting others do the heavy lifting to get past resistance and jumping on board once they have the ball rolling (to mix metaphors).
     
    #128     Jul 3, 2013
  9. NoDoji

    NoDoji

    Your posts are awesome. Thanks for sharing, as I learned a lot from this thread :)
     
    #129     Jul 3, 2013
  10. tiddlywinks

    tiddlywinks

    DB, as I disclosed to the original poster to which I replied... There is a fundamental and foundational difference between our analyses. That said, I only need one (1) price chart w/volume regardless of time frame to read behavior. That's as simple as it gets! KIS!

    Happy 4th
     
    #130     Jul 3, 2013
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