You can keep on drawing them but trading them is only for experts I think. Wait for price to get out of the tape in the opposite direction. Then at some point it will return (or at least try to return) in the original direction and we have our point three and the channel. regards, Ivo
In both cases I noted where the wall was and decided to take the loss and exit only if the wall was breached. I haven't really thought out about what I want to do with my exits yet. I am leaning towards taking profits early when I start trading live. In the first trade it looked like the YM was going to turn and exited (I left early, a minute or two later price went up about 2 more points) In the second trade, given the volume and move of 2:20 bar, I expected some sort of flaw and continuation when the 2:30 bar moved strongly I decided to exit and re-enter when the dominant traverse starts again. As I mentioned in my earlier post, I missed that entry.
IMHO, as a beginner, I definitely draw a lot of the tapes (in light grey) because they help identify the larger channel points 1,2,3. I can also use them as TL alerts in QT if needed. I may sometimes remove them just to keep my chart readable at EOD. Those that helped drive a decision, I will often leave in place. Welcome to the party, and I hope you enjoy the journey!
Here is my work for this morning. The cover price should be 1489.50. I got an F for execution yesterday, but today was much better. What do you think Spyder, is this an A+ for my skill level?
I've been working on the IF2 APA drills pretty hard the last couple of weeks - actually one of your recent posts prompted me to get my notes out and read some old posts again. There is more to IF1/IF2 APA than most people realise. A brief list of its attributes off the top of my head: It prevents early entry and exit errors. You learn to wash. You learn the benefit of reversing. You learn to be comfortable always in (volume permitting). You stop predicting at all, and have your lines in the sand ready for whatever happens. You learn to zoom in when required and when you can sit back on coarse level. You get very good at anticipating as you annotate. Your ego is kept out of it - you just do what the market tells you to. 5 minutes seems to drag on for an age. You rack up the points when there is a trend (and notice laterals very quickly). If you are itching to take an action well before an IF2 is triggered then you know you are improving. If there is a trend you will catch it. It is calming and methodical. Did I mention you will get in early on every trend? All in all it's a super cool synthesis of a lot of trading wisdom. It needs a more catchy name...
Chart for the morning. Few winners and a few losers. We had an important BO and I think price can continu up for a while. regards, Ivo
I am having a hell of a time figuring out how to use if1/if2 apa... I like the idea of having lines in the sand and I think the next step is linking trades, as Im sticking to ftt/pt3 entries right now. I have read the sexy idea thread and the diagrams, having trouble getting it into my head. Could you post a chart where you used this on a couple of bars? Perhaps I could start another thread if there are others that are having trouble grasping this
I'm really trying to understand this Jokari thing after the discussion last week. I hope you don't mind me bringing it back up as I'm just not getting it. I've spliced the two images togeter to make for an easier discussion on them. Ok, so in the image we see Spyder's highlight and just like Jokari says, the next bar closes higher. Easy enough. Spyder re-enforces that and asks the question... "The Highlighted bar closes. The Jokari window then says to expect the trend to change. In this example, the trend did change as Price moved higher. Now, how does this sequence of events differ from when The Jokari Window appears to fail - meaning everything appears the same but Price closes lower on the next bar. What differences exist?" Below I've clipped a section of the Nov, 30 chart where it seems to fail. We have a similiar well established down trend, lower vol and lower price on the highlighted bar, and then price closes lower on next bar contrary to what Jokari would indicate. Now the one difference I see is that the volume is roughly half that of the previous bar. Is this the answer to the question... "Now, how does this sequence of events differ from when The Jokari Window appears to fail - meaning everything appears the same but Price closes lower on the next bar." Is Jokari saying "When volume is just a little lower"? Or is it something else that I don't see?