I added a MATRIX to show how the hold and early exit relate. Notice the three cases where, if the extreme is under or over 3 ticks, tihs is the differentiation for holding (under) or making an early profit taking (over).you can use any value you wish for the three ticks. If you are fearful oranxious use a smaller value. As you grow mor spupported by logic, then use a larger value.
This atachment has three cards taped on a page from my binder. for re entries there is the consideration of no possible re entry as well I turned this card upside down so it is more clearer to see.
The next two cards deal with the c turn triads. c turns are dominant to dominant turns where sentiment is changing rapidly. Two types of triads come into view. For three c turns where sentiment keeps alternating, you want to trade each turn. The three trend types are D then A then A. That is the market comes out of a Drift type trend and rapidly does two A type trends which are found in the "incomplete" type trend sub sets. For avanced intermediate or axpert traders this is how they use superior skills to be able to "logically" jump fractals. Jumping fractals is strickly illegal for less skilled traders (See all of CW trading).
A D to A to A trend type triad sequence can fail. When it does or when a c turn which is not a D c turn pops up then a "hold thru triad" is begining. this eratic sequence has to be held thru , meaning take the first and last c turns BUT DO NOT TAKE THE MIDDLE c TURN. the flow sheet and card are attached.
I do market sentiment as a geomtery exercise.. Trends best fit into the mathematics of paradigm theory and the "PARA" concept prevails in the intellectual property created. For generating emotions of comfort, support and confidence is is best to orient strictly to making money via logic. You do not look at you account status as either profit or loss BUT instead you look at logic and the price data that relates to making money. So the extreme of a trend is important. the PINK card defines this zone of extreme forward progress. I the forming bar it is the area within three ticks of the forming forwarding extreme. The price can move forward or away form this extreme area. If you are doing trading you stay in this area for making money. When price leaves this area you leave the market. The gold card is what defines a trend. trends are defined by the H and L of two relative bars. A gold ray from the former bar goes forward to show the forming bar is defining the continuation of the forming bar to trend in the trend which is making money. Bar 2 is the forming bar. As previously explained the leg 2 of anybar is the dominant leg and is the same sentiment as the trend sentiment AS A TREND CONTINUES. THe doji context of a bar is vital and crucial because as price passes the open, it changes the sentiment of a bar. So the doji context is watched to be alert to sentiment change. The pink and gold mark forward progress. The doji shows dominant continuation and if failure could occur the passing through the dofi put the trader on high alert. Trends always fail. since they do it is always good to know exactly when this happens. Labelling with ftt on the 30 min serves this purpose. ftt stands for the failure geometric mechanism. Inventing it was an important step. "failure to traverse" going from right to left in the dominant direction of sentiment is a cardinal thing. So there is an ftt card. The geometric cards show trend forwarding, trends coming to an end, the most money being made and one other thing. It is very important to know if, after a trend ends through failure, if the next new trend is going to succeed in ending the overlap context in which it began. First of all a person has to KNOW that trends overlap. The overlap period is from ftt to the BO of the prior RTL. So to deal with trending we have to have a container for the trend to move forward. Para means in an unchanging context. The unchanging context is the CONSTANT VOLATILITY OF THE WHOLE TREND. WE ALL TREAT THIS AS A PROCESS OF DIFFERENTIAL ANALYSIS, OF COURSE. So on the parallelogram card you see where the two sides are placed and what the rule must be to properly place the LTL based upon the gold ray aspect of the definition of a trend. This is also what initiated when permission to measure the independent variable originated. The FBO card is somewhat obtuse to most. But it is there to notify you in a simple manner just when a new trend did not succeed in emerging and THUS the old trend is RESUMING by default. Have fun. Also keep in mind that most other approaches can be shown to be incomplete (and thus not usable) by the use of these geometric cards.
I changed the "preserve capital" card to a positive card for logical reasons. It is not necessary to just keep trading at the 4 to 9 contract level on any given week to just make midd 6 digits as an ROI. For emotional reasons it is a goodidea to reside in a given contract range until you get used to the related amounts of money. From 5 go to 10 and sit for a while. From 10 go to 20 and sit for a while. I posted prints for 100 as opens for three consecutive days just to show what doing an open trade yields. As seen it is common to make 13K in 9 minutes and let it go for the day. But as an alternative you can trade through the day and repeat the cycle many imes during a day. I also did a thrid party confirmation via ET for the trading the 100,000 shares of stock to show how partial fills have to be done when trading the PVT at capacity. In those 31 exit trades that netted 17 points per share, the 100,000 shares left about 200K, collectively, on the table because trading 10% of the cumulative volume was not practised.
To optimize the cards, I feel it is a good idea to get some blank 3x5 cards and handletter in your own words the cards I posted. In this manner you can make the system mean what you learned it does.