JW . . . each step must be following in sequence. Until each step is completed, you can not move on to the next step. If the step you are currently on reverses befor the next step triggers, the original step starts over again. How do you think a computer reads it. If this, then this.....
This is key, looking at that arrow as pointing to the PF makes sense. As an entry, I don't see it as per the rules and that is how I first looked at it. The arrow points to a LH, if you are waiting for weakness as described by the rules the entry would be just as price passes the last LL, as shown in the diagram posted above. Please clarify if this is not correct. TG
also, and someone please confirm . . . assuming the 2401 histo had oscillated (turned black) by then . . . . . . the HH (in Whisky's chart) was made after the L being referenced and the L is thus negated . . . you have to wait for another LH/LL combination on the 343 . . . and then enter on confirmation of that failure . . . ie when the "new" LL is broken
It is not the entry, it marks the pf as that was the question I believe. Ask yourself what happens when the 2401 histo turns black. We are trading price action so where is price at that time. Waiting for the histo to turn black is a safe trade, otherwise you risk an early entry like the one I showed. The weakness I referred to, my words not Bill's, is when price is failing to make higher highs. Now if you can answer the first question you will know why Bill says wait for the safe trade. (The histo turns black with a breach of the last HL.) The pf is basically a failed a-b-c with the entry on the close of the bar that breaches the b, or the open of the next bar.
I apologize if I sound condescending as that is not my intention. The sequence is quite clear as layed out. You must test it yourself. To me the exit is much more difficult to understand until I re-worded and tested it for myself.
Exactly. I agree, it's just that I didnât look at it that way at first, perhaps I looked at the chart out of context, but I initially thought it was marking an entry bar. Thanks for clarifying. TG
Not at all Wi!son . . . I've learned more in 1mth with screen time than I did trying to understand the method for 7-8mths after work . . . My question is not about the sequence, I think I understand it, maybe not as well as you, but I believe I have it . . . Correct me if I'm wrong . . . the hypothetical sequence I was alluding to could occur, no? Also, you didn't answer the main point of my query . . . that is . . . Whisky's chart shows a HH after an L he is referencing . . . that L is negated because of the HH and hence the need to look for a new LH/LL sequence in order to confirm the price failure . . .
If that last line was a question, then yes and no. Read my comments to Trading guy. I disagree with his interpretation of the entry. I believe the confirmation bar is the bar that breaches the LL labeled on his chart. The entry is on the close of that bar or the open of the next bar. With repect to Whiskey, his chart imo is correctly labeled but incomplete for the bigger picture. There is a LL before the L marked that is more important, also the 343 will usually but not always give you a divergence. If you take the early entries you have to take the heat/losses. Hey the bottom line is his stop would not have been hit. Now ask yourself where is the safest entry after the market turns. The answer should be obvious.