What makes you say its oversold? Too many downwaves? What signal did the candle before mine give that would have had you short there? (posting from my phone sorry if i missed something)
thanks. i'll look at your chart when i get to a computer. Im browsing from my phone now and can't see the detail in your chart on my little screen. Happy Holidays to everyone following this thread
You took the last trade at Point 6, not Point 5. I would have taken it after point 5. You would have potentially made some money on the trade depending on what your exit strategy was. I know I haven't discussed exits yet, but I wanted you to try getting used to entering either after point 3 or 5 first. It took me a minute to decipher your chart and understand what you did because it's been a long time since I used candles. As I said, for me they muddy the chart, but once I saw when you took the short, I could see that you waited until another turn, Point 6. Anyway, hope this helps and let me know whether point 3 or point is the better entry technique for you/
In hindsight it was point 6. But at the time I wanted to make sure the downtrend was continuing, and I couldn't tell if the retracement (from point 4 to point 5) was done until it went down from point 5 a bit. I hope I explained that well. I feel like in order to enter at point 3 or point 5 would require picking the top or bottom. Please correct me if this is wrong.
You would NOT be picking the top or bottom. You would be entering in an established trend. Remember, this is according to PA at its most basic level. Entering in a new trend after its confirmed. 3rd or 5th point.
I don't know when point 5 has happened (in a downtrend) until price continues to move down from it. I just happened to pick the bottom which ended up being point 6. If price continued to go down after i entered, then it would have looked like i entered right after point 5 correctly. Im confused how you know to enter at point 5 before price resumes its downward action. Or rather how you know where and when point 5 is occuring until it's after the fact.
You plotted point five on your chart perfectly. After it hits point 5 and reverses enter or wait until it passes point 4 and enter.
ironfist,can you summize in a paragraph(nutshell ) what you have learned or would confidently use at this point,there is so much info here and i'm having trouble knowing what you have grasped so far
I guess Im confused. If you are entering. Why wait so long? After you confirm you are going long or short enter? It seems to me you are waiting to long to get in because you might be unsure.