ProfLogic's Method

Discussion in 'Strategy Building' started by El Guapo, Nov 24, 2008.

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  1. Long 9:59 am EST (2401 PPF toward a Breach)
    Exit 10:28 am EST (343 Breach PPF created - weak oscillation - Exit taken)

    Short 1:06 pm EST (2401 PPF toward PPF - Aggressive but confirming Oscillation of 16807 Prime Top)
    Exit 2:18 pm EST (Extreme 16807 Histogram bottom - 16807 Perfect Trade PPF toward a Breach being created)

    Long term 16807 long then executed.
     
    #421     Jan 26, 2009
  2. By 'long term' do you mean you'll hold it overnight for a swing trade?

    - palinuro
     
    #422     Jan 26, 2009
  3. Poor choice of words on my part.
    16807 is a slow Intraday chart so for me any trade on the 16807 is a long term Intraday trade.
    ANy chart with more than one oscillation per day is an Intraday chart and today the 16807 had 3.
     
    #423     Jan 26, 2009
  4. Whisky

    Whisky

    This clarified things for me a great deal. Thanks Prof.

    JW
     
    #424     Jan 26, 2009
  5. pismo10

    pismo10

    Short just before 10am on both the 2401 and 16807 around 840-841. Only problem is the longer 117 was positive.
     
    #425     Jan 27, 2009
  6. Correct, this is showing you that any down strength is weak because the longer term strength is still up.
    In other words . . . consolidation.

    I takes a lot of patience to ONLY trade PPF's toward a Breach where the Histogram is Oscillating in Prime AND the next slower chart ERG & Histogram is going in the same direction as the trade you are entering.

    Traders just can't keep their fingers off the trigger waiting for a perfect set-up. :)
     
    #426     Jan 27, 2009
  7. I wanted to clarify a point here.
    Yest the 117649 ERG was Up but the Histogram is Down. This conflict is showing that shorter term (Histogram) on that chart is turning down).

    Consolidation is where everyone gets confused in the beginning. This is why I push traders to NOT trade during consolidation and only trade where the set-ups are crystal clear.
     
    #427     Jan 27, 2009
  8. pismo10

    pismo10

    HOW TRUE IS THIS.....Great statement.

    Whenever I have a down week I look at the log and there are always lots of trades. A good week, only a few trades.

    Patience is key, yet so difficult. It "feels" like there should be opportunities all the time.

    Lots of sideways stuff these 2 days.
     
    #428     Jan 27, 2009
  9. pismo10

    pismo10

    Prof,

    Do you pay much attention to the absolute level of the histogram on the next slower chart or does the direction/color weigh more.


    For the last couple days I have had a 117 histogram that was well above the zero line but indecisive (ie oscillating up and down/changing color) in direction. How would you read a situation like that?

    Thanks
     
    #429     Jan 27, 2009
  10. On the slower chart the direction is more important because it IS slower. The exact oscillation on the slower chart is played out much faster on the faster chart and easier to see there.

    When ANY chart is confusing I simply slow down the chart. If the 117649 is confusing I look at the 823543. Why, because is simply a slower clone of the 117649. The 823543 is showing a Confirming PPF/PPF oscillation of a Convergent bottom in a Bull Trend.
    In other words . . . damn thing is consolidating and trying to create a nice solid bottom in a Bull Trend.
     
    #430     Jan 27, 2009
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