If You Can Draw A Straight Line . . .

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

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  1. dbphoenix

    dbphoenix

    1030: price having trouble making a higher high but still holding above 50%. NQ much stronger than the ES today, which found resistance at its 50% level. That however has nothing to do with the plan. It's just an observation.

    1033: price having trouble holding here. If 49 breaks, trade should be exited.

    1036: even though 53 was not any particular resistance, a trader who knows how to and can exit quickly could short here. Otherwise, stand aside.

    1042: ah, tricky.

    1044: an SAR at 51 would have been appropriate for the aggressive. Otherwise, continue to stand aside.

    1047: SAR long would be out now. This is a good example of price creating its own resistance at an unanticipated level during the trading session.

    Out of time. Hope this was in some way helpful.
     
    #341     Jul 26, 2013
  2. niko

    niko

    No extremes, no trades today for me.
     
    #342     Jul 26, 2013
  3. Gringo

    Gringo

    Exciting!
     
    #343     Jul 26, 2013
  4. db was the 50% level for this comment:
    "1030: price having trouble making a higher high but still holding above 50%. NQ much stronger than the ES today, which found resistance at its 50% level. That however has nothing to do with the plan. It's just an observation."

    Set from the low of the 9:30 bar to the high of the 9:59 bar?
     
    #344     Jul 26, 2013
  5. dbphoenix

    dbphoenix

    From the high at 58 to the low at 40.

    Begin with the width of the entire trading range, from 58-60 to 24-28. This puts the midpoint around 42. The 50% level for this particular segment is from the high at 58 to the midpoint, i.e., 49-50. The exact 50% level can't be determined until one gets there and sees how traders behave at that level. In this case, 49 appeared to be a turning point. I'd like to call it a "pivot" point, but that would only confuse everybody. Better would be "rotisserie" point, but that takes too long to type.

    Edit: 1130: You can see here that as soon as price reaches 49, it begins to hesitate. This doesn't mean that you have to do anything other than be alert and cautious. What is more important is the confirmation that 49 is a level to which attention should be paid.
     
    #345     Jul 26, 2013
  6. DB, would you have trailed that lower low at 11:02 for a long entry?
     
    #346     Jul 26, 2013
  7. dbphoenix

    dbphoenix

    Not exactly. Price finds support at the opening low, so the entry is off the higher low at 1100, at 1101 or 1102, preferably around 42 or just above.
     
    #347     Jul 26, 2013
  8. niko

    niko

    Did made some analysis though.

    My notes on the chart.
     
    #348     Jul 26, 2013
  9. dbphoenix

    dbphoenix

    1234: just to put a lid on it, note that price did manage to struggle through the 50% level (which wound up being much wider than usual, more like 48-52%) and has now reached the upper limit of the range, at which point you have permission to exit the trade and go outside and play.

    My apologies for taking so long to reply to these posts. I'm in the middle of renovating a house and I don't have much time after the first hour, and often not even then, depending on the weather.
     
    #349     Jul 26, 2013
  10. fortydraws

    fortydraws

    Just to make sure, DbPhoneix, the times posted are Eastern, correct?
     
    #350     Jul 26, 2013
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