BM, Apparently my last response in your other PA thread didnât register â also appears you are at the 50,000 foot view â I maintain you need to get on the ground floor So allow me to try a different approach and explain... ======================================================================================= When you read an articleâ¦, a storyâ¦, a bookâ¦. Or whatever⦠Do you read it; By chapter By paragraph By sentence OR Word by word Then put the words together to form sentences â combine the sentences to form paragraphs⦠the paragraphs to form chapters Do you use these same words to create images / thoughts/ to discover the meaning and message contained within the article / story/ book⦠Do you also use these words to derive the authorâs intent for writing the article/ story/ book / whatever â in the first place ===================================================================================== When you work complex math formulas; Do you work the formula out â as one complete entity⦠Or break out the individual variables, solve the variables, replace the variables in the formula, rewrite the formula, combine like terms â then solve the thing ===================================================================================== Trading PA is no different - Yes â the language is different (just as English differs from Math)⦠But in the end â there is a story â there is meaning â there is intentâ¦. And the means to revealing PAâs story â is the very same means we would use to decipher an article/ a story/ a book... or solve a math formula⦠Simply stated To understand a chart â we must decipher each bar (just as we would with each word in a story, or variable in a formula)⦠then we would place that bar together with its surrounding bars to form proper context (as we must combine words to form sentences, / or enter the known variables in a formula) â next we place groups of bars into trends (same as placing sentences into paragraphs/ combining like terms in a formula).. Then piece it all together to derive priceâs meaning and intent (same as we would do to grasp the meaning and intent of an authorâs article/ story/ book, their reason for writing it⦠or solving a math formula)⦠May I respectfully suggest you get down to ground level and build up⦠Learn the words (the language of the bars)â¦, learn to piece the words togetherâ¦, then learn to decipher what youâve pieced together so you can grasp the meaning and intent Hard â yes⦠Doable â Absolutely⦠Right now, imo, youâre trying to learn PA bassackwards â sure itâs a short cut â maybe it can be done⦠but at what cost ultimatelyâ¦. =================================================================================== On another note; Care to estimate how many homonyms exists in the English language The same is true with bars â they may appear the sameâ¦, feel the sameâ¦, act the same â but depending upon the context in which theyâre found â these bars will have totally different meanings⦠Btw â in one formula X = 2â¦. In another, X = 3.14159265359 â¦. in another still X = something entirely different⦠=================================================================================== Finally my view on S&R Its bullshit â the only real S & R is the lowest, and highest â price, a stock has ever reached⦠Even then a stockâs price could easily rise higher⦠or go belly up (Bear Sterns/ GM) Everything else is; A value area (area of great interest to either the Longsâ¦, or the Shortsâ¦, or Bothâ¦) A magnet (magnets have the ability to attract or repel)⦠An area of no interest (to either the Longsâ¦, or the Shortsâ¦, and in rare instances Both) PA identifies these areas, shows how they should be labeled, tells us when thereâre likely to come into play⦠and guides us on how we should play if/ when price gets thereâ¦. Think on it â you may come to understand why it important to adopt this distinct definition, and mindset⦠Keeping a flexible mind â ensures we maintain the flexibility to go long â or short â at the drop of a hat â solely dependent on what PA tells us to do. Conversely if we have it set in our mind that price is âat supportââ¦or âat resistanceâ⦠then we could very well hesitate â when its in fact time to act. Furthermore it clarifies our thoughts and allows us to see the reality of PA â the reality of the chart â the actions and intentions our opponents â sans all the bullshit, noise, news, or reasons â they are unnecessaryâ¦. Ever heard price has memory â small wonder as to why it does⦠Okay Iâve said my piece â Iâll drop it Sir⦠Regards RN
bearmountain Every afternoon in the elevator on the way up from the trading floor. I heard two topics of conversation. Without exception. "I was up in the AM and gave it all back" and "I knew it was going lower but I wont chase a trade" Some where in the middle is best. I have found even a straight up losing trade can be managed to a small loss or even scratch. My trading mentor taught me and others. One of his rules now mine . "Dont over-analyze or hesitate" Place the trade and manage it. If wrong you can get out. But you'll never be right or profitable unless you make a trade. Taken the correct context. Obviously within the parameters of you methodology.I am similar with the set up you use. Sometime if I get the trigger bar but no third. I take it if confirmed by another indicator that shows a trend reversal or end. Or confirmation by this activity at or near a significant price. Go with the crux of what the indicator signals or displays sometimes not the perfect visual. This is one of the pitfalls of red light green light trading.
there is a fundamental problem with getting actionable trading strategies on elitetrader. this is mainly to do with using static charts to illustrate comments. even if u throw a dead cat on a static chart, u r likely to have a comment or two. elitetrader is good about formulating ideas, but it has limitations when it comes to actioanble strategies. u may think u can sit all day and do a 3br with a tight stop. good idea. in practice, most serious profitable traders wont just do that. they locate whatever new idea comes their way within the structure of their existing trading styles. chances are, such structures may include s/r levels. kept it mind that elitetrader, in large part, is an informercial where established traders with tradingroom come to hook beginning traders