Foresight chart http://www.sierrachart.com/image.php?l=1369961509673.png Replay chart http://www.sierrachart.com/image.php?l=1369966070256.png Key Points: 8:29 Trading Range is anticipated to lie between 3005 and 2983 with MP of 2994. 8:31 Price crosses premarket R of 3000. 8:40 Fast 3 point climb to reach R of anticipated TR. Been rejected 4 times at this level in the past. 8:48 Price going strong through next R level of 3010. Going to 3020? 8:50 Up 10 points straight. Buying waves smaller. 8:58 Retest of R fails. 9:16 Crosses MP of previous 10 point up wave.
In your previous posts you have said that DS and trend lines are training wheels while S/R are the trumps. So reading that again, along with your post from yesterday, as well as a growing feeling of just having barely scratched the surface, I realized that I have been operating without the trumps. A big part of the odds are in S/R. Previously I had been basing everything on just the immediate action and S/R formed from the open. So I was not really trading at the key boundaries. I was also exiting far too early instead of relying on S/R to anticipate movement and playing 10 point swings instead of 2 to 4 points. The prep gave me a feeling of being methodical. The action at 3005 was interesting because this had acted as a good R level in the past. Is anticipating a breakout on a RET the same as a breakout entry?
The 30th, as price reached the R of around 3005 implied by the TR stretching a few day's back. See here: http://www.sierrachart.com/image.php?l=1370002044572.png Once a RET formed around this zone, would an entry here been based on a breakout principle?
Actually the TR went back only a day. And there's no RET here, assuming that you're looking at the bounce off the midpoint of the range. The long is taken bec of the show of strength at the midpoint. A RET trade doesn't apply unless you're trending.
I understand the breaking of the 05 to be a 'breakout' trade. But if the decision is made to anticipate the breaking through 05, so that the entry is made below R, what would the classification be?
If you're buying the bounce off the midpoint, you're just buying a bounce off a midpoint. Not everything has to have a name, nor does it have to be classified. Make it simple, then keep it that way.