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

    Fan the line, and stay in. Some minutes later the new line ia broken, so once again in "looking for a ret" mode.
     
    #671     Oct 17, 2013
  2. niko

    niko

    I meant that I agree with your post. And the 50% levels. Is just that we are currently focusing on lines and retracements.
     
    #672     Oct 17, 2013
  3. dbphoenix

    dbphoenix

    All right, next. After having broken the fanned line, price makes a new high. What does one do now?

    [​IMG]
     
    #673     Oct 17, 2013
  4. dbphoenix

    dbphoenix

    Huyang, none of what you're posting has anything to do with the topic of discussion. If you want to post it in your journal, feel free to do so. But please don't post it here.
     
    #674     Oct 17, 2013
  5. llIHeroic

    llIHeroic

    Stay in the long position. Continue to observe.

    --

    I feel like I had a tiny moment of understanding. This is the second time you've asked what we do when price makes a higher high and we are long.

    Initially, I didn't even think to ask myself questions like this since a higher high doesn't pose any immediate threat to a long position. I think I've been going about my thought process incorrectly and incompletely.

    Incorporating questions like the one you've just asked into the procedure definitely gives me more of a feeling of continual engagement and detached observation in the current price action. An intentional decision to stay a trade at any given point in time is just as valid and important as the decision to exit one.

    Seems quite obvious now that I've thought about it and written it out, but for some reason it hasn't fully sunken in before now.
     
    #675     Oct 17, 2013
  6. Huyang

    Huyang

    DB:
    I realized my ES question is not related to the discussion, so i deleted it. For my NQ related posts, i was trying my best to learn how to make good use of the insights shown in all those discussions by answering those questions. But apparently you think all my posts are irrelevant. I am sorry for this but that was my not intention. Thank you for pointing out.
     
    #676     Oct 17, 2013
  7. dbphoenix

    dbphoenix

    But after it made that new high, it fell back. Is that not a concern? If not, why not?
     
    #677     Oct 17, 2013
  8. Gringo

    Gringo

    We stay in long. Create a new DL. But, also notice that the price got slapped down and couldn't 'really' continue up. Price also didn't continue down and kind of recovered. So there was a moment of weakness for price and it's not too weak but kind of neutral again by staying above or close to that earlier swing high of 3208/9. Now this could be temporary, but it is a set of new information we have. In other words don't go for a washroom break at this time.
     
    #678     Oct 17, 2013

  9. You're asking for too much thought process, Mr. Phoenix. Tut tut.
     
    #679     Oct 17, 2013
  10. llIHeroic

    llIHeroic

    Thinking further, it seems like I have the tendency to keep looking at the trade on the macro level since we've been holding it for over 10 points. My first thought was still one of being unconcerned even though the purple demand line has not been breached, and continue to watch what happens as price approaches the black demand line. The 50% mark is no longer a consideration since it has been surpassed by the black line.

    However, upon thinking about your additional probing, some uncertainty arises and I begin to wonder if I am giving up some efficiency in just sticking to the black line. I suspect that I am being a little less sharp and intelligent about the management of the trade because of the comfortable position of holding a winning trade.

    This is another piece of insight for me. I suppose that on some level, fear and ego are motivating me to manage tight trades [even just paper] in a different manner than trades like our theoretical one where on the other end of the spectrum, laziness may begin to set in. I will need to continue to process this.

    ---

    If I had just entered the trade at the 3206 RET, I would be a lot more focused on the recent price action, which is beginning to show a subtle possibility of weakness.

    I don't think anything has happened yet that warrants closing our position, but I am watching closely to see if a supply line begins to form soon.
     
    #680     Oct 17, 2013
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