Observations (an example)

Discussion in 'Journals' started by fortydraws, Jan 13, 2015.

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  1. fortydraws

    fortydraws

    Journal 86.JPG
     
    #201     Feb 24, 2015
  2. fortydraws

    fortydraws

    Someone not worried about scalping a few ticks here and there can do quite well just saving their efforts for the extremes. Most days the NQ will traverse from one limit to the other at least once. Of course, the fact that price bent both sides of the range would have the anti-TA crowd saying "see, TA doesn't work." Well, of course it doesn't "work." You, your trading plan, and your ability to follow that plan is what "works."

    Journal 88.JPG
     
    #202     Feb 24, 2015
  3. dbphoenix

    dbphoenix

    I've never studied soybeans. Is it mean-reverting?
     
    #203     Feb 24, 2015
  4. fortydraws

    fortydraws

    I'm trying to figure that out - someone once told me I should attempt to characterize a market before attempting to trade it. :)
     
    #204     Feb 24, 2015
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  5. Gringo

    Gringo

    Thanks for remembering me. I do happen to say intelligent things when I am not paying attention. :)
     
    #205     Feb 24, 2015
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  6. fortydraws

    fortydraws


    DbPhoenix referenced a thread from 11 years ago where someone else referenced a quote by DbPhoenix from that time or before. Within that quote, I read this:

    "An indicator, a pattern, a system, is a tool. A tool does not work. A tool simply is. It is the person who uses the tool who works. If anything doesn't work, it is the person who is supposed to be doing the work, not the tools themselves. To say the (fill in the blank) "doesn't work" is a stupid thing to say."

    I just thought the similarity striking, and this is my journal, so I thought I'd note it here. Of course, I did read Larry Phillips's book (on DbPhoneix's recommendation), but it didn't come from there. I guess I may have learned a thing or two about trading from DbPhoenix after all.
     
    #206     Feb 24, 2015
  7. dbphoenix

    dbphoenix

    That schmuck? He trades?
     
    #207     Feb 24, 2015
    fortydraws likes this.
  8. gears

    gears

    Could I trouble you to explain the highlighted portion further?
     
    #208     Feb 24, 2015
  9. fortydraws

    fortydraws

    Suppose price trades to a double top, and then, on the third try, it finally breaks the high and gallops higher - lets's say 10 points higher. Eventually, it comes time to rest, and price pulls back toward the level of the double top. Very often, price pulls back that whole 10 points to that "former resistance" to test it as support. But sometimes, before price can come back to that level, buying pressure gathers again, and rather than pulling back the 10 points to the BO level it only pulls back 5 points, and then resumes its gallop to higher highs.
     
    #209     Feb 24, 2015
    gears likes this.
  10. dbphoenix

    dbphoenix

    And that's called . . . (let's not always see the same hands:))
     
    #210     Feb 24, 2015
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