OK, so you're me and you took the trade. Would 11:29 to 11:36 shake you out? How did you know to exit on the 11:48 bar? (I didn't, haha, I waited until 11:49.)
Amazing! On the one minute there are 5 red candles in a row, trending down. There's more: on the 1st, there is big red volume where a high at 1796.25 was made, then 5 minutes later the entry. It may have been hard to hold, because it looked like there was support at 1792.50 a few minutes later. How's that? This is my first affair with candles, so forgive any errors in the analysis.
It was best to stay in at 11:48, because red volume got bigger, but then at 11:49 some impressive green volume appeared, which may have indicated, to those wise enough to know, that the jig might soon be up.
Good start. I honestly can't remember why I entered, probably random. Here's the lesson. To the best of my knowledge, our little Jap guru was the first to enunciate the Rule of Ten. It states, somewhat improbably, and I paraphrase, that on any frottale (French scholars, appreciate that word) that you are trading, big runs last only ten bars. By big runs, I mean hyperbolic moves. Hyperbolic because they are unsustainable, either the market goes to infinity or to zero if it lasts any longer. Our unmentionable guru apparently confused hyperbolic with hypergolic, because he calls such moves rockets. Trust me, I AM a rocket scientist, and my rockets don't don't fly that way, especially upsidedown. From 11:38 to 11:47 count ten bars (OK, sometimes it's anywhere from a Rule of Eight to a Rule of Twelve, so sue me for a phony guru). That's how you know to exit on the green 11:48 bar. Sorry, gotta run. It's unhappy hour here. There's more to the lesson. Later. You're a good sport, 225. ET thanks you for your sacrifice.
I see an error in my ways. Volume didn't matter. As Bill Cara says, "We trade price," but I am gurooed-out -- like too many cooks spoil the soup, too many gurus spoil the trade. Will you be my one and only guru, FM? Am I sacrificed? A lamb led to the slaughter?
Continuing, the example I cited, if you're looking at a chart, is raggedy. The rule of ten works best on a very clean run of ten red or ten green bars. "Count" on it. Now the critics may start. "Why (they will say) are you revealing this?" Well, because I want you to trade this way. Isn't that what proper gurus are supposed to do, front run? The entry is mine. The exit is yours! "Why does it work on one minute?" Because five minute traders can only comprehend two bars at once. "How does volume play in this?" Keep the stereo turned down to a non-distracting level. "Can I incoprporate channels into this method?" Tune to whatever station you like. Bon weekend!
225, you are promoted to 250! And my attitude about gurus is summarized by the greatest guru of all, who said "Be lamps unto yourselves." So to paraphrase the Zen maxim, "If you meet the guru on the road, kill him!"
"Thou art as a lamp unto my feet, yea, I shall lift mine eyes up to the hills from whence my guru cometh!" Uh, is that kowtowing enough? I got the exit, now what's the entry?
Yes, the definition of an optimist is Captain Ahab, rowing out to sea, with a 55 gal. drum of tarter sauce.