so I've decide to dedicate alot more time to reading the books that db has suggested and the wtckoff trading course but i wanted to give some observations about todays movement, it's pretty easy to see all the resistance at 3142 and now we are there again which looks to me to be the 5th attempt at breaking through, I am not trading this but I believe if we break through 42 there is more resistance at 48 which could set uop a good shorting opportunity
After the reversal the 1st sign of danger was at the demand line break at 9:52 at around 3132, pretty nice trade for those who went long!
I will be posting later on my observations for Monday later this evening. I do have a question for db.in games journal you say concentrate on the what not the why! I guess your comments to me are focused on the why.
We have been in a trading range for a while and the levels to watch from my hourly chart where most of the trading has gone on are. 3060,3088,3100,3108,3133 and 3150
3148 to 3150 acting as support per dbs ebook price gets above resistance it can run pretty hard, anyone that follows the rules with supply and demand lines should be doing well today!
Lots of sideways action in between each advance with only 3 or 4 scary retracements, after watching 2 hours on replay it turned out that the 1st 2 swing moves each moved around 13 points so congrats top those who were on the long side!
After looking at the chart for the entire day the uptrend got a little over extended after 1pm cst and mainly drifted into the close. I'm not sure how I would have traded this had I been watching it live but from the tape the bulls were in control most of the day and the best trade would have been at the open or on the retracement to 3146.Wish I could get some help on demand and supply lines to me it was confusing today because of the early am chop!
Through observations this week it appears to me that the lolr is still up for the time being. I'm in the process of working on my price action method, to me it seems like I focus too much on what other people say. According to the experts you need an edge, confidence in your edge and rules for your entry and exits. Some say only trade off of higher time frames, some say to scalp and some say to buy and hold. My method will be a combination of things I've learned and fit my personality and will involve price action only with the 20 ema as my only indicator along with supply and demand lines in my head. Mark Douglas says its about probabilities and each valid set up should be traded as long as you have an edge and follow your rules. The main thing is getting my mind wrapped around the fact that nobody knows what the market will do next so trade your edge, get out when your wrong and just because the set up might be the same as before there is no way of knowing for sure what will happen next. For a trade to work exactly as another every trader would have to do the exact same thing, and if you think about it that's not even remotely possible.