Technical Strategy

Discussion in 'Chit Chat' started by Tums, Oct 3, 2008.

  1. Neoxx

    Neoxx

    Entry, 6 reversals, close.

    Missed the entire opening move, and only one of the reversals was timely.

    11.75/30.5 = 0.39 ATR


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    #1831     Jan 30, 2009
  2. Neoxx

    Neoxx

    The Day

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    #1832     Jan 30, 2009
  3. If a trader began by learning about the Price - Volume Relationship in the Equities Markets, the trader would have either a thirty minute or a daily chart. No YM leading the ES. No Str-Squ leading the YM. No DOM providing the boundaries within laterals. No Tic Charts for trading multiple times within a single bar.

    Since the genesis of The P-V Relationship began in the Equities Markets with hand drawn charts on a daily time frame (long before personal computers and trading software became the rage), something must exist within a single fractal which provides all the information a trader could ever need.

    Your short at 13:09 today represented a picture perfect example of taking appropriate and timely action (when a non-dominant UP Traverse had reached its completion). However, your attempt to reverse long 5 bars later occurred, prior to, the market creating a Point Two of a traverse - let alone having the market provide a Point Three, returning to dominant Volume, completing of sequences or creating a signal for change at the traverse level, represented emotional influences on your trading which have no place dancing about in your mindset.

    Learn to understand what your Gaussians are telling you. By doing so, you'll automatically understand which fractal provided the signal you see, and more importantly, whether or not that particular fractal has completed its sequences.

    A Traverse Level trader had 4 trades today (beginning at Bar Two until the end of day). Anyone trading at a more frequent rate either ...

    A. Isn't trading at the Traverse Level
    B. Missed a significant component of Monitoring.

    or

    C. Both A & B

    Again, nicely done on the short @ 13:09 (two tics off the high of the retrace!!). Time to steer and focus on that which you need, and set aside that which you do not.

    HTH

    - Spydertrader
     
    #1833     Jan 30, 2009
  4. Neoxx

    Neoxx

    Thanks for the comments, Spyder. Much appreciated.

    Definitely guilty of both A and B.

    The day started with a wrong preflight, and I didn’t have things clear until bar 6, after which I waited for the inevitable retrace, not to realize that it would come much later, and that I’d mistake it for a sequence completion when it finally did arrive.

    The long traverse formed very smoothly, although I hadn’t realized it was a non-dominant traverse until the SOC. Prior to that, I’d anticipated a new long channel following the FTT of the carryover short channel.

    The rate of price change after the high of the retrace compelled me to trade the next faster fractal, though I had never intended to take a sub-tape reversal.

    I didn’t express myself accurately when I said I was staring at the tics.

    I’m only using the ES 5-minute chart.

    What I meant was that I was staring at the price ticking its way up and down the bar, and thought I’d recognized range extension on a volume spike with the price subsequently retreating back into the bar, although I realize I applied this completely out of context (assuming I understood it correctly in the first place).

    The biggest frustration with premature reversals is the opportunity cost. The two faster fractal traverses which followed that retrace high formed really neatly and both indicated change very clearly. Or rather, I recognized the signs of change clearly but was unable to take action as I was already holding from the premature reversals.

    Something that contributed to the confusion of the morning session today was an inaccurate conclusion I had come to last night, after reviewing a series of charts, namely that while a break out of a lateral formation cannot constitute dominance, a break out of a lateral movement can.

    I intend to clarify this once and for all this weekend, and this is where the A4 chartbooks and printed charts come really handy.

    Although WMCN is becoming clearer, there’s still significant room for improvement here, and I plan to stay with just the ES 5-minute charts until there is no longer any doubt about WMCN and everything occurs in line with expectations.

    Had I not foolishly disregarded your advice to stick to just the ES 5-minute charts the first time around, I expect I’d be much further in my journey right now.

    Thanks for taking an interest, and thanks again for the feedback.
     
    #1834     Jan 30, 2009
  5. Neoxx

    Neoxx

    Spyder’s recent comments spurred some interesting thoughts. Echoing similar sentiments by Jack, he urges us to transcend mere two-dimensionals definitions, a black and white world, and discover the rich, technicolour experience that lies just out of reach.

    Over the years, many expedients have been added (i.e. Dom, stretch-squeeze etc) to facilitate the process of transference Jack often speaks of. Presumably, all of the vocabulary also served a similar purpose, providing a kind of ordered structure for the transfer of information, and the accumulation of knowledge, skill and experience.

    The middle-men build the bridge. Perceptual learning takes place, synapses fire, neural interconnections form. At some point, having served their purpose, the intermediaries are no longer needed. But despite the pull of what lies beyond the stone and mortar, a magnetic inertia keeps us transfixed, continuing to find safety, comfort and familiarity in old haunts, well after their obsolescence.

    We all know there is far more to every bar than that which we openly acknowledge or have a name for. Every bar can provide a depth of information that registers with the subconscious mind, if not the conscious awareness.

    It seems we can continue searching for different shades of grey, or we can simply choose to see the colours.
     
    #1835     Jan 31, 2009
  6. Neoxx

    Neoxx

    Friday's chart, not exhaustively debriefed, but with a few amendments.


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    #1836     Jan 31, 2009
  7. You have no idea how powerful this statement is and how few people will truly, and I mean truly, get what you mean here.

     
    #1837     Feb 1, 2009
  8. #


     
    #1838     Feb 1, 2009
  9. Neoxx

    Neoxx

    In view of the above, tried to be less prescriptive and more holistic today.
     
    #1839     Feb 2, 2009
  10. Neoxx

    Neoxx

    Missed the first 45 minutes due to adverse weather conditions, then a couple of bad initial trades due to some misinterpretation.

    Huge urge to reverse at bar 75 (for reasons other than the double top) but held in view of extenuating circumstances.

    15.75/18.75 = 0.83 ATR


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    #1840     Feb 2, 2009