I agree, but the problem is that unless you can prove that you have some sort of dependency(which is unlikely) from trade to trade and that you have a filter to skip certain trades(taking advantage of this knowledge), you will most likely do more harm than good by not taking all the signals. Which can turn your positive expectancy system into a negative situation.
Although there's nothing wrong with having two systems, one for low volatility situations and one for high. Forcing one system to satisfy both conditions may not be appropriate. --Db
If those buyers are buying because they think the market is going up, because there enough other people who also think the market is going up, and the market indeed goes up, and they make money, while the sellers lose money, what praytell makes the buyers "stupid"? Sounds kinda smart to me...
Interesting how the market is taking out the interim S/R points and reversing immediately. Everyone is in range mode now. These are days I hate with this system. The traders are trying to sell this rally since yesterday and someone keeps buying beyond reason. Must be the public finally getting in to hold the bag? Or is this a real bull market, and a bunch of us are dillusioned?
If you're daytrading, it shouldn't make any difference. At least in terms of what price is supposed to do. One over-riding rule I have is to avoid trading coils, and right now we're in a coil. So I can relax. If your system doesn't have a similar sort of opt-out feature, you may want to consider that. --Db
I'm just saying that from the point of view that we are overbought and technical levels were broken to the downside yesterday (short-term) that were ignored. This is bad etiquette on behalf of traders, if they were the one's responsible (which I doubt), who know the rules and should help drive down the market when those levels are broken Obviously a foreign force (real money) has come into the market with no regard for how things are done, and is mucking up the game plan.
I'm not familiar with this term. Do you mean periods when the market trades between support and resistance levels again and again? Please elaborate. Thanks ~EC
Yes I agree. My opt out is two stop outs either direction creating a channel. Kind of expensive, so if you have another suggestion let me know.