Honestly the gaps on that chart never entered my thoughts - price rejection on both the upper and lower lines did..., as well as some consolidation areas ================================== Gaps could be thought of as form of rejection..., but I don't see them as such Instead; I see them as purposely engineered pockets of liquidity/ risk management..., and eventual magnets - unless that is.., they fail pretty quickly RN
Damn good BDâ¦, but please allow me to refine your response TM; Market is uncertain We never know which way price is headed We never know how far price will travel A set up (all set ups in fact) are nothing more than an indication that price will do one thing over another ================= What we need to identify with price/ volume/ lines/ whatever A condition were we think price will do one thing over another (price can only go up/down/sideways) And A low risk stop to find out ===================== once both are identified - we trade it =================== Next logical question would be; What about identifying a profit target Who knows â the mkt is uncertain⦠and we will never know where..., or how far - price will go But to help us identify a target, we can use; Measured moves Time Close of a bar Other side of a channel (albeit a channel on our trading TF, or possibly a larger TF) PA Break of a line - horizontal or diagonal Touch of a line - horizontal or diagonal Volume Just to name a few Good Job BD RN
btw, and an observation Please try to stop thinking in absolutes We never know which way price is going (no one does) ====================== Ease up on yourself a bit..., also divert your focus from you... and instead onto the process you're following/ your plan A losing trade does not mean we were wrong - simply means the trade didn't work - this time Food for thought Sir RN
Can someone define "measured move"? I see that term used on the forum but dont understand what it means. Is it perhaps ABC waves where price value change in wave C is the same price value change as in wave A, hence 'measured'? Thanks, tihfa
If no one else chimes in I'll respond this evening.. may even try to find an example or two I know NOD posted an example on that thread bitching about TA - fwiw http://www.elitetrader.com/vb/showthread.php?threadid=247024&perpage=6&pagenumber=211 Your abc is correct A=C (or close to it) RN
Btw I really like the words Rn used to describe what a setup is. Just an indication that price will do one thing over the other. There are a million setups.