Glad you got something out of it, but the problem is not lack of explanation, it's fear fog. And the lack of a thoroughly-tested, consistently-profitable trading plan. Without the plan, nothing can be done about the fear. And as long as the trader is afraid, all the explanation in the world won't make a dent. Took me longer to accept that than I care to admit (like several thousand posts), but there you are. Beginners are easy to work with because they get it so quickly. But those who've already become trapped in the loss cycle are difficult to impossible, particularly if they're addicted, which many are. Unfortunately, quite a few have families to support.
True dat! the thing is one must get confident in what he is doing and that is gained thru expirience and working on ones approach while in development! one has to take full responsibilty on each trade taken , review and learn from it and thus gain expirience and confidence, wich also means he MUST be true with oneself and his flaws and failures ie. selfreflection .. and work on it even if it means to change ones lifestyle outside of trading and rethink if he is on the right path on his REAL journey , wich is life ...
MadeMan: Could you please explain why you think the market is on the spring board in your second chart? i feel your springboard is different from springboard in the following chart with notes from Wyckoff. Prob i am thinking in a shallow level. Thank you very much. http://i.imgur.com/2HnIwqh.jpg
Hi Huyang! First Off iam glad that you dig that Deep into that methology/Approach Keep it on ! as the Chart of wyckoff represent one Day per bar U could think Off waht happened within those bars? A springboard is price Approaching a level of interrest Wheter it be Support or Résistance but the Path of least Résistance is opposing the Force wich would be Expected. Upon that level in my and in your Case Support , therfore If u excpect buying at a level but price keeps making LHs and LL Torwards and Thru that level its just a mather of time Till the Bulls puke And Propelle price away from that level , wich Acts as a springboard And if u Look at my Chart u can see the action on a larger Intervall Ie it takes several bars and one where it Takes a few bars , but if you can Or could Zoom in the PA would Resemble the Same action.. I cant post Charts for the time beeing but Imagines the 3 bars before 07/03 Containe a Range between its high and lows Now just Focus on the close of the bars 07/03 and 07/06 One is at the MP and one is Off the. MP but price comes back Just Imagine u could See the action on a smaller Intervall Like the M5 , and u could See how price Approaches the MP Reacts rallies moves Down again makes a LL reacts makes a LH Moves Thru the MP reacts makes a LH moves lower , all Bulls get anxiety And eventual Start to puke and propell price away... So if the path of least Res. Is opposing what you expect that level of approach should Be , it may Act as a springboard in the opposite way For example the springboard Off the MP of my First drawing Resembles a Former value area MP wich gets rejected as a unfair High , acts as a springboard to the downside as the path of least Résistance Is Down and demand couldnt withstand that pressure I will Post a chart tomorrow to Elaborate it more , Till then all the best
Madman: I donot think i understand your elaboration well, and look forward to read your chart. To save your time, please explain the reasoning for one springboard in your chart. Thank you very much.
Huyang notice how price makes continoues lower highs and lows towards and thru potentil support levels... as price grinds its way thru that levels and retests them , where price gets rejected off , we re on a springboard situation , wich can happen in any TF , some tke several weeks , like the first example.. some take just a few days like the second example.. but look at the second example look at the bars highs and lows.. it makes continous lower highs and lows and before it drops we hada rallie attempt and it close at the lows , ie, the rejection.. so basically your example or wyckoffs , could look like this in a smaller TF .. where again the same features may happen all in all price is on a springboard if it sort of grinds at or thru sup.,res.,mp.,extremes, without significant reactions , price keeps pushing back/thru , (path of least res.) look at a short i took , we approach sup. activity increases (vol.) but we cant seem to lift price off that sup. we even make a series of lower highs and lows . we are on a pot springboard situation,iplayed it and it went good http://elitetrader.com/vb/showthread.php?s=&threadid=278394&perpage=6&pagenumber=4
Put more succinctly, price is on the springboard when it is preparing for a significant advance or decline. Therefore, your "1" is a springboard whereas your "2" is the consequence, if I'm understanding your examples. Anyone who's interested in this can scan Wyckoff's course using "springboard" or search the Wyckoff Forum at TL using the word. If there are too many hits, he can reduce the number by using my name as part of the search. It is important not to allow what is basically an off-hand reference to a market phenomenon to become a lynchpin for a set of tactics whereby the trader searches for "springboards". There are no defining characteristics for a springboard other than that price is getting ready to do something. It's much more important to look for that and what it's doing and why it's doing it and where it's doing it. The springboard is defined by what one understands about market dynamics, not by a set of mechanical criteria. If one has that understanding, he'll see what he needs to see without necessarily being able to put a label to it.
yes u are right , i guess i was more explaining and or looking at absorbtion , or like in the examples consumption of demand/buyers at supp... nevertheless absorbtion is a signal that price is about to move and therefore a "springboard "? is every range a "springboard" then ? The springboard is defined by what one understands about market dynamics, not by a set of mechanical criteria thats pretty much what iam saying.. but it seems i cant express myself clearly.. mostly due to language barriers.. whatever.. it happens to be that the examples i put out look almost identical in nature , but thats just coincidence.. and not a pattern iam on a lookout for. cheers
Absorption can provide such a signal, provided one can recognize it in real time, which few people can. But absorption only applies to stocks anyway, along with accumulation. If there's no float, there's nothing to absorb. Generally speaking, it's preferable to wait until price actually moves rather than try to determine whether or not it's getting ready to do so, despite what the vendors spout in their courses. Which is where the supply/demand lines come in.