Why don't you sit down for a moment and think about what is hanging you up? There is no test mandated to trade perfectly on each top and bottom. Reversing is something that is a good idea when you get to the place where you CAN simply recognize that a reversal is an exit followed closely by an entry. The perfect sequence is not the goal. Leaving a few tics on the table is okay. waht if you DID trade daily and TRY? you will find out very soon that you are making an error that makes what you do either too early all the time or too late all the time. For you for about a month or so it will be too late on reversals simply because you now exit too soon all the time. That is to say, you are freaked a lot of the time and cannot act when you should. You act too soon fearing not keeping profits you already made. This causes hesitation in doing reversals as you hint at already in what you just posted. Being in the market all the time doing reversals is not like it is for you now (being out most of the time and being frustrated by missed opportunities) It is going to be hard for you to take opportunities and beginning to do so, for you, will be later than on time. You have some MACD issues as well and they are difficult to overcome too. It is more a display problem for you since you do not as yet see what is happening in any accepted degree of detail. Time really slows down when is in anticipation rather than in fear as you are now.
I think it is a bad idea for person to choose to do something for the wrong reasons. Person to person the same reason could be bad for one and good for another. I know alot of people hit the PnL to find a reson to follow one person or another. It may work for some people and not for others. There were a lot of posts of Stochastics in this thread. Some were pulled after being up for a while. I chose to annotate one that was put up last Friday simply because it had the best signals of those that I saw. I made a poor guess about what track trackstar used to use. he smirks and I laugh about being wrong. I would be cautious about using a Pnl as the basis for getting interested. I did go in that direction of posting when I came here. I'm glad I backed off when I was faulted as being an equivalent of a photoshopper. I have posted handwritten notes and done camtasias however. I feel very lucky to have gotten the ball rolling without that type of approach after all. It was good to learn about the pro's and con's of how anyone should approach learning to become wealthy.
Lets do the analysis: Post PnL(2 results): A. Above what is expected: 1. You get more of a following 2. People know you are successful B. Below what is expected: 1. You get lots of shit 2. No one follows your system Now, are there any drawbacks to A? I doubt it, if anything you get to sell more of whatever you sell. To B? Yes, no one will listen to a thing you have to say or buy whatever you are selling. I have nothing against you. In fact I have some respect for you since you can take boat loads of shit and still be around. But I am sick seeing pages upon pages of the forum criticizing you and others backing you. Clear it all up once and for all. Put the dummies to shame or throw the system away.
Jack, I agree that channels are very powerful trading tools, and the ES is the best for channels I have come across. The Euro is good, also the YM, the Russel is poor, NQ I have not used channels on. However I use channels in a very different way. Mathematically they are perfect and there's no guesswork. The ES scores big time here because the channels are exact. But I don't use teeny weeny channels... because there is so much noise and violations and reconstructs. If you have a method that can beat the noise, either don't tell or show all. And by show all I mean one single A4 page should be sufficient to explain "Buy Here" with "This Signal" and "Reverse Here" on the opposite set up. I don't think you can do that, because you have too much to say. I have no idea if it works. You need someone you have trained to write out your rules on one page and then give plenty of chart examples. I have made it clear I'm not going to show what I do and I have given the reasons why. You are making utterly extreme claims and offering to show how, but the results are bewilderment. If you want to help others then take note that you are having the opposite effect. The solution is simple: get a ghostwriter who can give a very concise, well set out rule based methodology. Regarding the example you posted of someone elses system, this is a bad example to use for channelling. The coloured horizontal bars give no warning of an impending cross and so have no value whatsoever for a Channeling System. In fact it would probably make a profit doing the opposite of what it says. An example is only relevant if it pertains to your method, otherwise it adds to the confusion and bewilderment and frustration traders experience attempting to decypher your methods. I know channels work - channel breakouts used to be the method employed in institutional automated systems - but not as you construct them. I'm all on for taking something that works on a bigger timeframe and scaling it down to see at what point it breaks down and if there's an edge. But it has to be clean and clear. The beauty of true channels is the clear, visable, repeatable mathematical relationships. No guesswork and perfect for automation. I refuse to get into Jack-bashing, or anyone else for that matter. But Jack, even if you won't do it for your own credibility, do it for those you claim to want to help. There are a lot of hurting traders who have tried in vain to make your method work, and it seems obvious that the cause is either too many words and unclear rules, or an unprofitable method. Cut this thing down to one page of rules and lots of examples. Don't use other peoples systems as examples, please.
Ok, ST and others asked what indicators can do that PA alone can't. I gave a lengthy reply in order to give a frame of reference and then a synopsis. But I am waiting for a reply to my question from PA traders. Lets say we had a top, a good pullback and now it looks like PA is going for a test of the highs again. It's a quality move, the swing up and the swing down clear and good to trade using PA alone. However, close to the retest of the highs but not close enough for a proper retest PA gives a clear sell signal. Here are my questions... 1. Do you take the reversal, or expect it is noise and the future test of the high is the signal to take. 2. Wherever you take the sell signal - how would you know in advance if this is going to be a major reversal or a minor pullback and move to new highs. 3. If you reversed and it gets choppy, what would make you hold the trade if it signalled get out? One thing I may not have made clear in my explanation on What Indicators show that PA doesn't, is the power to show a reversal bar is going to follow. In other words, I am selling very close to the top of a green bar - way before PA has given any kind of reversal signal on a red bar and way before a bar takeout, lower close etc. Here's an example of a volume Flag - the candle is green but the volume is actually the smart money bailing out. On PA is looks strong, but baby, I'm short way way before the PA signal. This is pure Livermore/Wyckoff - retest of the high and baleout-reversal by smartmoney. It's an absolute screamer that PA alone can't see.
Yoohoo, With all due respect a true PA trader would use multiple charts to determine if the point of interest has confluence via trendlines or important resistant pivots from the bigger picture. By just using an intraday chart you are limiting your vision, it does not work like that, not for a pure price action trader. Susana