Per channel line forecasting and lagging trend confirmation: Both are a powerful means to track where smart money is being allocated and where it's going. Bounces are created by price satisfaction in sell-offs and buy-backs and by the time a rally from a bounce has shown signs of commensurating is often where smart money decides to enter having drove prices down or up enough to claim a stake in an opposing direction; and enough channels if professionally done are in place before hand to determine where it is smart money is flowing, before it flows. Here's a chart of my monitoring ES' rally, pull back, and confirmed buying frenzy - elsewhere on ET can be found a jpeg of my buying this pullback before the buying frenzy - though, you'll have to hunt for it. Outside of scalping pikers and agressive block investors throwing weight, no one buys a bottom or top. They buy a confirmed pullback. And you can't get a good fill on a pullback unless you're automated without trendlines and channels. That you're down-playing channels only proves your total lack of familiarity in market dynamics and execution timing. And no offense has been taken; though I'm assured you'll be offended.
realdeel and xcrement This is a trading journal and not a JH fest. Go somewhere and play with your toys. A trading journal is not for wannabes. Xcrement go play in the dumpster, do something but just go away.
<i>"With all due respect to those of you who have posted your charts here, I can't seem to get the thought out of my head that these all look great in HINDSIGHT, or as the computer types say, in "batch mode."...</i> Yup... very true. That's exactly what everyone thinks until they learn to read chart patterns = tools for themselves. The act of "teaching" someone and the process of someone "learning" can bump together, but are completely different from one another. If this base-level chart stuff doesn't yet make complete sense, it's your responsibility to learn. Once you've done that, it'll all make perfect sense upon first glance... even after being awakened from a sound sleep.
SusanaDT, Good luck with your excellent thread. I will definitively follow it !!!. Although I analyze price less horizontally than you do, I also follow, trade and respect pure price action as the only way for successful day trading (not necessarily for long term positions where fundamentals can sometime override price action) In any case, today ES 7500 Vol charts same trade different perspective. Both are self explanatory Higher/Highs and Higher Lows + Support and Resistance given by Horizontal lines. The second chart can be helpful for ânewâ traders at pure price analysis because it only plots bars when there is a 3 bar reversals. jjrvat
jjrvat, thanks for the chart. while I can see the HH and HL, and your target, can you explain where your entry would have been, what pattern you would have used?
jjrvat - Interesting chart (just plotting 3 bar reversals). Is it possible to do that in either Tradestation or Ninja? Thanks. Sandy
today is a good day for market profile traders, which is just trading around a mean by buying/selling a value area extreme (usually 1 std deviation). Doesn't really fit in so well with this thread as its heavily dependent on volume, but for those of you that have a hard time with choppy days, you should have a look. I use it when the markets are just chopping around like today, otherwise, I don't even look at it, just bar charts and price mostly.
It really does not matter if it's a range bound or choppy day as long as you enter with support or resistance protecting your back. Susana