Son of If You Can Draw a Straight Line . . .

Discussion in 'Journals' started by dbphoenix, Sep 19, 2013.

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  1. niko

    niko

    Still far away from proficiency, but at least the lines keep me in the green :).

    I think my main issues now are:

    1. Unable to see the adequate S/R levels for the session.
    2. Just take trades after a 2 bar rule I invented for another instrument, but as price is a movie so will work on forgetting that rule.
    3. Still not sure about the failures, I see they provide good opps in hindsight but still need to back test those to know for sure.

    I am sure the senior traders can spot lots of other issues, so please do not be kind :( .

    I replayed the market because I was away during the morning, that is why I am posting so late.
     
    #131     Sep 25, 2013
  2. dbphoenix

    dbphoenix

    You should review the first page of the thread and go over your chart again.
     
    #132     Sep 25, 2013
  3. niko

    niko

    I am on it
     
    #133     Sep 25, 2013
  4. niko

    niko

    Ok, I will go by the steps as I understand them.

    The first step is to determine the current trend of the market (Wyckoff):

    By yesterday´s close we were still in an uptrend, at the bottom of the trend channel.

    [​IMG]
     
    #134     Sep 25, 2013
  5. niko

    niko

    The second step is to determine one's place in the current trend:

    Before the open, we were in a hinge, just around the MP which also coincided with friday´s low. The levels of interest were

    237 price found R there in Sep 9th and the 23rd, it also had a failure on sep 20th.

    231 was yesterday´s high.

    215 current hinge MP

    203 MP of the hinge from the 17th and yesterday´s low.

    195 Bottom of the gap and found R there on the 18th just before the BO.

    182 found S there on the 18th and the 17th.

    [​IMG]

    I think that this is where I make the first mistake, and as the rest flows from this I will stop here. Any feedback will be appreciated. After that I will continue with today´s hindsight analysis.
     
    #135     Sep 25, 2013
  6. dbphoenix

    dbphoenix

    First, it's not a midpoint. A midpoint is the middle of a range and is the level at which the greatest amount of volume occurs (you really need to start reading my posts: grr). It is a point of equilibrium.

    Second, while the prep work is necessary and useful, your point of focus at the beginning of the session is whatever is the most pertinent feature of the landscape prior to the beginning of the session. In this case, it was the hinge pointed out earlier, the one that began on the 23rd, specifically, the "apex" of that hinge. Forget about everything else until price starts moving. Then you can concern yourself with all that other stuff.

    Third, once price leaves the hinge, and it will, then you start following it. You go where it leads. Where is that?
     
    #136     Sep 25, 2013
  7. Huyang

    Huyang

    DB:

    Prob you made these 4 entries. Please comment. Thanks a lot.
     
    #137     Sep 25, 2013
  8. dbphoenix

    dbphoenix

    And an added note: the middle of a hinge is just a middle. It doesn't mean anything. The "point of equilibrium", which is the point reached when price comes more or less to a standstill, is not a point of equilibrium until, obviously, price reaches it. Until then, price is still in flux.

    Since the purpose of the behavior that creates the hinge in the first place is to reach equilibrium, or agreement, this should not be difficult to remember.
     
    #138     Sep 25, 2013
  9. I've been working on this. Can you recall the time window traded?
     
    #139     Sep 25, 2013
  10. dbphoenix

    dbphoenix

    I thought I had been specific, but apparently I wasn't (post #54 or so). It was the continuing difficulties with this that gave me the idea of having others reconstruct my day rather than my giving yet one more explanation.

    In any case, my first trade was at 0556. Yes, 0556. Don't ask. My last was at 1135. That was an unusually long day, but it was so interesting I was able to stay with it. I appear not to have given the ticks, either. Ticks gained was 167 and ticks lost was 19. Wins 5 and losses 4.
     
    #140     Sep 25, 2013
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