I would like to clarify my understanding of the profit taking signals, as I understand it, you can secure profits by exiting on the LTR or RTR, or you can reverse at the LTR or RTR, but then reading a few posts I read this, from copy of thread q for grob part i.doc, page 44 All trading profits are taken on the left channel line. This statement is repeated a couple of times, so just wanted to know is this referring to a specific trading position, I presume long, or is it an absolute statement that we always secure profits on the LTR, sorry if this is a basic question but I thought I understood this Thanks
osho, it´s not a mechanical system. just draw the channels and look for nice set ups. You have to follow the "rules" by jack that you feel that you can handle. For example, I think wash-outs are a good idea, but jumping in and out of the market is to stressfull for me. I will use fixed stops in the beginning, and then when i get more experienced i will try wash outs. reversals are also a good idea, but again, i wouldn`t be able to handle it yet. My point is, u gotta see what fits you at the knowledge level that you are at at the moment. I attach a chart where arrows shows three points within a channel where i feel it´s "safe" to enter. Remember this is my view of things, and just because these entries were going my way in this channel doesn´t mean they would have worked in another channel another day. I always wait for point 5 to show up in the channel. And if there is no point 5, well, there is no trade... /Stalker
just to make things clear - my third entry/arrow is more based on the horisontal support than the channels, but when the left channel line and an s/r-level shows up at the same time, i think a trendfade is a high prob. entry if the trend is not too strong...
A couple of things. LTR??? RTR??? L2R, R2L! These are the paths across the channel. A traverse has a starting point which begins at the "R"ight trend line. For any new channel, Pt1 is the first reference point for the formation of a channel. From Pt1 there is a traverse "2" the "L"eft trend line where Pt2 is located. Then there is another traverse/retrace back "2" Pt3 of the "R"ight trendline, thus completing the channel formation and projection. Constructing channels in this manner is unbiased (long, short, lateral). If the channel is short, the LTL will be the lower line. If your channel is long, the LTL will be the upper line. As a result, for Long/Short channels, the R2L will be the more profitable of the pair of traverses. The extension of channels is to create the projection of where the right side of the market is operating since several more traverses will occur within the channel. When flaws arise within a traverse, it is a point at which to monitor more closely for the new Pt1 of the newly forming channel... Kind Regards, MAK!
makosgu Thanks very much, this is much clearer LTR??? RTR???, typo here,sorry, I meant to say LTL (Left Trendline) and RTL (Right Trendline)
It looks like you are drawing the envelopes...s/r level. I would also like to delve into the topics you suggested. What tells us that the trend is not too strong? How do we determine that our envelopes are the real envelopes for the intraday channels? I have noticed that the envelope channels possibly pinwheel in slope and might cue us off to the migration. Just some thoughts.
the 10350-level on dow was holding for 2 days a couple of weeks ago if i remember correctly, so it´s resonable to expect a bounce. If the trend is too strong or not, well I´m not an expert, but there usually is at least one major correction of the trend during the first hours. The day after the the fed announcement was a day where i wouldn´t go against the trend, too risky. But this is something i´m looking at every day, don´t have all the answers. I wan´t to incorporate s/r-levels because if you learn how to use them u have a good system to use on the days when price is jumping up and down in a tight range.