Amitman, It is perfectly fine to follow Highs and Lows like a "rabbit" if you are in between areas of support and resistance. This is exactly where AHG helps, but Anek only presented the basics of trend following in his public journal. You see when you hit a "considerable" resistance area, the last upside move will obviously be a higher high, and unless this "resistance area" becomes support, this higher high is meant to be shorted, if an only the price action allows you to. In comparison, when price reaches an important area of support, LLs are meant to be bought if you got the green light from the PA. You can only do the rabbit following trending thing when the highs and lows occur in between pivots. When you get to the serious pivots you must stop, examine and wait for the clear signal. Unless of course, the PA tells you to continue, then you obviously do so and let the winner run. The above is extremely important and should be read and re-read until it's finally understood. I know it took me a while to digest it. Susana
Hi susana, I'll read your post again (I've already read it a few times) but I'll really love if you could post a chart to help me understand your point. Beacuse i thought PA is about LL/LH/HH/HL and S/R but from your post it seems they are different things and in this case I don't know what do you mean by PA. Also even according to your post I can't seem to understand why you did the short on 10:06 and why you didn't make a short at approx. 13:20.
Susana, Do you trade with only one chart or do look at other time frame charts. I know some traders use a higher time frame chart to determine direction, a lower time frame chart for set ups, and an even lower time frame chart for entries. What's your opinion of trading with multiple time frame charts? Thank you. Floyd
Forget the charts, there are trends within trends within trends. Say the faster trend is trend A wrapped inside trend B. Well trend A could be in an uptrend and trend B could be in a downtrend. What happens when trend A hits the resistance of trend B ? You can't assume price will break the resistance of trend B because trend A is uptrending. This is precisely when you must examine PA with the most details, at this point. In fact many times it will just consolidate and do nothing as price is continuously going from trending states to consolidated ones. Hope it's clear, it's the best I can do. Susana
Susana, I know what you're talking about and what PA to look for at reversal points, but can you define 'rabbit following'? That's a new term to me!
It was just me being silly. I meant to say, a trader following price like some puppet or pet with no relevance for what's ahead or around the corner. Susana
Susana, I am confused and not sure if your comments were for my questions. Are you saying that you only use one chart? You don't advocate using multiple time frames? Thanks for comments. Floyd
Max, I assume those red and blue wavy lines are some form of MA (an indicator, I think). For the sake of regularity and in keeping with the spirit of this journal, I suggest you delete them in your future posts. Thanks.
Thank you Susana for your kind answers, I don't fully understand you now and not even sure I completely agree with you, but as I learned from my exprience I might just need more time just noticing your points. Keep up the good work, you're trading great, and if I were you I would highly consider moving to bigger lot size, espcially in such an amazing market enviourment, you'll miss the days when you could average 8PTS per day. As it comes to me, I'll keep watching and learning and try to contribute as much as I can. Good luck Amit