IN THIS THREAD: IronFist learns (the elusive) PRICE ACTION

Discussion in 'Strategy Building' started by IronFist, Dec 2, 2008.

  1. Thanks for starting this thread. It is worth trying renco charts side by side as well. Try 20 or 30 box size and you can see trend changes very clearly. Drawback is whipsaws but still worth in a good trending market.

    Any body else any opinion on renco charts? Thanks
     
    #111     Dec 5, 2008
  2. pclark

    pclark

    Thanks for the write up Kovacs. Good stuff.
     
    #112     Dec 5, 2008
  3. cipher4d

    cipher4d

    Thanks for the chart. Good job on honoring your stops.

    I don't use trendlines but it seems ggoyal is waiting for the pullback to show weakness before he enters, not when price hits the TL. Are you using any other timeframes? Might help with watching the trend... or not. Keep playing around. I don't know how long you have been watching the charts without indicators but if you ever get frustrated I would suggest just watching the charts for a couple of days without trading. It might give a fresh perspective without the strain of trying to make sense of everything.

    How was your mindset/attitude while you were trading? good? Thanks for this thread, maybe it will become a classic :p
     
    #113     Dec 5, 2008
  4. how does "weakness" appear on the charts?
    I was annoyed that I kept having all my trades go against me, but I was still calm. I'm using a demo account now.
     
    #114     Dec 5, 2008
  5. cipher4d

    cipher4d

    On page 13 ggoyal posted a chart with the annotation

    "...I took the trade as soon as the red bar closed below the open of the green bar..."

    Also, the second trade he entered on that chart was entered on a doji which can be hint of weakness.
     
    #115     Dec 5, 2008
  6. IMO weakness is shown when a major or minor support level is broken.
     
    #116     Dec 5, 2008
  7. To be more specific, weakness is shown when price breaks below a level at which, during previous sessions, many people were interested, and bought at (creating the support). Those peole are no longer interested at that point, ergo weakness.
     
    #117     Dec 5, 2008
  8. I've noticed you revert to anticipation instead of trading the signals you have been shown, so...

    Rule 1: Reread and learn the signals
    Rule 2: Learn to wait on the signal to complete
    Rule 3: Stick to the rules

    Where did you learn a red bar is a signal to go long?

    This gambling style is a cert to wipe out your account. Next learn quality... but don't even ask until you learn to be rule based.
     
    #118     Dec 5, 2008
  9. when price is coming to a TL, wait for the next bar to close green on the line, THEN enter, and put you stop (if not too wide) on the open, or low of that bar. If price comes back down, and stops you out especially on a large green bar then the up trend has probably ended. But as long as that line is tested, and respected, its still bullish, just try and wait for a green candle next time before buying.
     
    #119     Dec 5, 2008
  10. +1 the ability to create and follow rules is more important than any edge you well ever gain.
     
    #120     Dec 5, 2008