every pullback or popup is a candidate for a reversal. but when it significantly pierces it, you know to wait for confirmation. like if the body is piercing the line and then our strength/weakness re-appears. thats fine.
allright guys. this is a lot of work. to annotate every chart and show and expain everything. i can only imgaine how anek did it for 6 months. makes me appreciate his generosity more than my own life. this it guys, high probability winners. no secrets nothing. it is a lot of work. small stops with atleast 2:1 or 1.5:1 winners r enough to make money. currently workingon better exits. but let me know if this is clear. i have showed entries, stops, and exits. enter when you see strength(i.e. green bar close above atleast previous bar open if green, open if red) think and visualize. weakness(i.e. red bar close below atleast previous bar close if red, open if green). and these r all during pullbacks and popups. no chasing. i hate it too when i miss trades, but there r plenty of opportunities throughout each and every day and i cant stress this enough, this method will keep you out of chop, sure you might get stopped on one before you know its chop, but then you will know its chop because YOU CANT CONNECT ANY LINES!!! isnt that great, thats the biggest difference for me. <img src=http://elitetrader.com/vb/attachment.php?s=&postid=2205075 width=800> click on attachment to enlarge image
Great thread. I am one of those people always saying indicators are useless and PA is key. I wish you all the luck in the world in your pursuit of PA. Its not easy, but the reward isnt small either. Not sure if this helps but IMHO sometimes you will hear people say that the market is random, and it seems that way if you aren't paying attention to PA and only PA. The reason is because while the world changes all the time (eg the market isnt the same now as it was 50 years ago) the fundamentals behind PA don't change. Price is our most direct link to supply and demand. Supply and demand are fueled by 2 immutable human behaviors: fear and greed. So in essence, by trading PA you are attempting to read and anticipate the natural reoccurring human behaviors that drive the market every day. Please don't make any mistake, I am no expert...Im just a noob, but when you get into PA the market starts to make sense in so many ways, its nothing short of amazing. The random numbers on your screen start to develop an ebb and flow and I am starting to see how the market really speaks, day in and out. We don't want to be like everyone else who are out there with crystal balls trying to predict the future. We don't predict, we react. If you can learn to read this in price itself, you will be way ahead of all those lagging indicators who, to me, merely tell you what has just happened. Indicators are based on price a lot of the time. I think PA traders invented indicators simply as as shortcuts. I don't know this for sure, but I would bet traders trading PA (what else was there before indicators) created indicators not really to show them the trades, but just as shortcuts...shortening the time it took to identify and project a concepts of PA they understood and could identify themselves if they wanted to. But now so many traders looking for the easy buck think they can simply pile on the indicators without any regard to the REAL meaning behind them. I don't thin k all indicators are evil, I simply think you must understand price before you attempt shortcuts and bundle up and quantify certain elements with indicators. I will be following along and I will ad my 2 cents when I can, I'm still learning too, but I am starting to develop some consistency. best of luck.
yes. my accuracy is about 55-60%. i usually go for 2 times risk. but it also depends on price. i cant make it go to 2 times MY risk. price is my master.