Thanks Mav for the clear explanation. That is an interesting and useful pattern you describe there. I guess especially useful when the stock has made monthly A up early in the month like this case.
Why do you say that ? Useful.. how, so if it breaks out of ( where, what price0 your going to buy... and how much ?
I am a stock newbie. Never traded it. My main experience is in fx. So, any tid-bit of wisdom I pick up on stocks is useful to me, especially if it is coming from a senior guy like Mav. I really don't know the answer to your question as to what price I would have bought it. How much I would have bought - Yes, I can determine that by deciding on a stop looking at a chart and then depending on distance between entry and stop, will derive the # of shares to buy, so as to risk 1-2% on the trade.
OK, let me get back to this post. Since I'm a price action trader, all the levels and their various time frames are meaningful to me only in the context of price action. I'm not an absolutist. Just because something is above the monthly A up does not mean I like it and vice versa. Levels simply attract my attention. It's my job to decipher whether a level has any meaning and if it does, how best to play it. So I look at monthly, weekly, intra-day and even Qtr levels. One is not any better or more important then the other. The number line also helps. But more importantly, I'm looking at relationships. So if crude is making a monthly A up, what else is or isn't. If Crude is the last risk asset to make an A up, not only am I not bullish on Crude, but I'm probably bearish! This is what I constantly talk on here about spreads and relationships and market tells and price action and how the market is responding to news. All these things are important. I can't just get bullish because price crossed some arbitrary line.
1) Makes sense. Just clarify following. 2) When CL made monthly A down., you posted you will not touch cl. Is there a time filter for confirmation or not for weekly/monthly A up A down levels? for example for my daily OR , i have 45 minutes OR and time filter of 22 minutes. 2) from your post, it looks like as long as price closed below monthly A down level, it is monthly A down. I just wanted to confirm. 3) So, 30 days number lines are helpful but not really? As 30 days number line during that time period shows they were all positive and healthy numbers but we had monthly A down. 4) for day trading, after A down, if price get back to OR high and makes an A up, i turn bullish. Is there such a thing for weekly and monthly A up/ A down? If we had monthly A down in December, did we made monthly C up in December? I am looking for guidelines for Monthly/ Weekly C ups etc.. 5) I am sure if CL is above monthly A up and has a healthy 30 days number line, you will be all over it. Since, in December when we had monthly A down in CL but healthy 30 days number line, no need to get too bearish on CL- is the way i am looking at 30 days number line and weekly , monthly ACD set ups. Anybody else who uses weekly , monthly ACD set ups , please share your thoughts. We do not want Maverick74 to Run away if he has to answer every question (lol)
Not getting any messages from ET... weird... (hence my late response) No, I didn't have a failed A down. Just a crummy range bound day. I did have a failed A up at 44.92 however.