you never know it's going to be a short term retrace...all retraces start the same way, but some end up as reversals. As far as I can tell you never know that before hand. I suspect he drew it in and took it out later so we can see the chart more clearly.. In any event, you have drawn it in correctly.. nice work
Attached are my two trades (sim) for the day. My current goal is to try and stop being too early to the party. I have circled how much price moved against me before eventually doing what was anticipated. I did not pull the trigger on the third trade at the 2:45/2:50 bar (short). After the first two trades I wanted to be more patient and wait for the turn, but was hesitant after price moved away pretty fast. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1704111">
Dear Mr. Chicken: If you'll look closely at the pair of figures in the SCT document, I'm certain you will be able to discern that no channels have been drawn in either. I'm equally certain that if you read the first sentence of the SCT Report you will glean that the effort described in the report is for "experts only". So if you put the two things together, it would suggest that if you wish to trade continuously without channels then when you consider yourself to be an expert, by dint of experience or better yet, self-proclamation, then use this method. For some time now JH methodology has used channels (JH and SpyderTrader have talked rather extensively about this, as well you know). The IF1/IF2/APA protocols have simply been incorporated into an expanded methodology. This process is called iteration. If you wish to return to the past, do so, but my perception is that much as is the situation at present, you will find yourself alone, because like Turkey Lurkey and Ducky Lucky, no one here is buying your little story . lj
Nice but note that a tape is not a channel. You seem to mix them up unless you were drawing tapes intentionally. A channel has one directional change in it (so minimum 3 bars). regards, Ivo
Sure. I agree with all of this. We are "internalizing" the method now, practice and practice until we just feel instinctively and realtime that change has come and we can act immediately. I must admit that occasionally I have had these magical moments when you just feel it and do it exactly at the right moment (out of all moments that are possible). Note that for example "waiting to enter" or "holding" is also something you can feel you should do. I remember someone comparing it with a group of birds that suddenly changes direction. You have to feel one of them. When you start to think it often goes wrong. I am sure some people here know what I am talking about. I don't know what it is, probably the conscious opening up for the unconscious etc. However, it totally explains that some people "get it" quickly and others never do. So besides experience, skills, doing the work, etc it has to do with the way you are wired. Hopefully being aware of this helps in the learning process... Allow me to quote this from another thread. It is about how long it takes to be profitable. I think JH method is not an exception to this. regards, Ivo
Congrats on the trades =) . I know exactly what you mean, hard to pinpoint a good entry after a retrace. Either too early and market runs against you for a ways, or too late and it's hard to enter because market is taking off on a WRB. Did you have a predetermined amount that you were going to let yourself get underwater? And how did you determine your exits.. I saw that one trade MFE was almost 7 points
Hey Ivob, I was drawing the tapes intentionally. In the first part of the journal most of the charts posted draw in the tapes. Is this a practice that is generally dropped once you can draw and annotate the channels accurately? Thanks, -A
I also keep track of the MAE ad MFE. Im glad to see that our results are similar (at least on this example). With using just the coarse level tools (PRV an ES) it seems that having your initial entry move against you somewhat is "par for the course." Trying not to be too early OR too late with identifying my point 3 entry areas has been my focus recently.