anyways jack often about flaws and sequences when you are in a trade i have been trying to do more of this...here is some of what i had this morning...trying to see if i am on the right trrack. jack...you talked about getting 100 pages of sequences in 15m i don't understand how i would get all sequences that quickly...i think i don't understand what you would want us to do...if you could clarify would be big help. anyways...flaws of rocket failure and sequences of reversal: 9:45 Short Rocket Signal s(20.83, 21.76) macd hist -.41 flaws i noted and why i would potentially reverse: 9:45 bar (1)has much lower volume (10,654) vs 9:40 bar (17,412) (2) the bar is an inside bar and did not make a new low of day. lowest 5m vol so far on the day 9:50 (1) nq breaks to a new low and es does not (2) stoch leaves rocket zone (3) my trend channel is broken (4) up volume is increasing (14,406) 9:55 (1) macd xo (2) stoch crosses 50% s(66.67,38.89) all of these flaws points to potentially higher prices...long consideration close of 9:55 is 878.50 on macd xo. 10:00 macd hist +0.43 (good reading) vol dips a bit (12,000) but still ok. ROCKET SIGNAL 10:05 high of day broken of strong vol (21,297)...this vol spike was significant and had me wary of exhasustion....this bar is a rocket signal s(84.38, 78.13) 10:10 looking good vol 17451 new highs in price 10:15 price/vol spike rumor of saddam (23,231) this 2nd price/vol spike had me tightening up. 10:20 small price and decreasing vol bar...make new high in price 10:25-10:40 FLAW:sideways movement of price and significantly decreasing volume and breaks my trend channel and mcd xo...potential exit time. stoch still in rocket zone. 10:45 price spike up...FLAW:make a new high by 0.25 on lower vol 15.461 (the statue comes down)...potential exit 10:50 mkt reverse on increasing vol TREND DEF OVER macd has xo, stoch out of zone, trend line broken.
LOL (a couple people at work did hear me). dawg don't be hard on yourself it takes courage to admit that you're wrong and identifying your mistakes is the first step towards correcting them. FWIW, I used to be/am guilty of the same sins. I got me a timer, set it to go off every 10 min when I'm trading and I do a reality check. I made a short list of the most common sins and if I catch myself about to commit one I take a deep breath and reconsider. It doesn't work every time but it helps. I also try to glance at the list before taking entry/exit. My trades: #1 rocket signal #1 - entry before 15m of synch - looked like it synched already (managed to enter at the very bottom) Short 874.50 9:44 Cover 877.25 9:53 as rocket failed -3.25 I saw the same sequences very nicely articulated by dawg only I was waiting for point 3. Low volume on 9:45 bar didn't bother me too much as mkt was consolidating after a decline and stochs were still in rocket zone. At 9:51 it became clear that the trend was reversing but I only reversed 1.5 pt later. duh. #2 reversal on failed rocket-5m MACD cross. x. Long 877.25 9:53 Sell 878.75 10:02 +1.50 Chickened out as volume was low and fast stoch seemed stuck at 50. Guess I wanted to make up for the loss and lock in some profits. My bad. #3 rocket signal, baghdad news Long 880.75 10:08 Sell 883.50 10:41 +2.75 Stayed longer in the trade although my first channel was broken - was waiting for 2nd point 3 but eventually I buckled and sold at 10:41. That was my point 3! Was biased on the long side by the developments in Iraq, expected market to be happier about it. But he had discounted them already... Today's sins: jumping the gun (1st trade) hesitant (reversal) impatient (waiting for point 3) biased (by news) 1m chart (watching too much) A royal flush. Day +1.50 Week +9.75
#1 rocket signal Short 862.75 10:34 Cover&Reverse 863.50 10:40 channel not broken yet, 5M MACD crossing and 1 min chart spike. -0.75 #2 reversal Long 863.50 10:40 Sell 864.50 11:06 10:40 5m bar turned out a VDU with BO, and break of trendline which reassured me to stay in. Rocket failed -> 10:55 VDU inside bar at , stoch hitch at 50 -> tighten -> 11:03 failed BO=FLAW -> channel broken and exit +1.00 Day +.25 Week 10.00 Looking back, the trendlines that I drew were not really channels in that terrible chop. The trend was slower today, still on the 15m chart.
3 trades -7.00 18 days: 22.75 falling apart at the seams...i will try and post details later after i calm down....traded more off of trend lines and failed badly
Thanks for such a nice wrap up post. I am working through a series of steps in making money. He is my thesis. I feel that you need to start off in a simple wya and just make money on the trades that are very strong. These are rockets. Strangely, as you make money you change as a person. I try to see where a person is and what is affecting them (adversely). We all have baggage and some of it is perverse. As this enegy is released by pringing down the curtains on the various dramas, then people apply theenergy to making money more and more copiously. you will see humor creeping into things too. The 100 pages of sequences needed a lot of humor because it is a daughting task in reality. It can only be done as a person's consciousness improves. Some bold fragments show up. Indicators come alive and we see their formulas processing data and we adjust cooefficients to tailor them. Finally, when we see their signals we notice that the signals come in order as sequences. By using signals to make decisions, we get to a point where we can adjust decision making by moving from regular signals to those sognals that come before (precede these). This isn't enough though. we need to combine the individual sequences into a tree of signals. This shows interrelationships. What do we get for doing this. No more boredom. And an extreme consciousness. I know what it's like to have a wind shear down when I am dropping down with full spoilers to land in a $100,000 glider. Decisions to turn off problems, come from finding the flaw in the system quickly. After not having your bottom on the seat comes straining a five way harness to the limit and not being able easily to move your hands on the stick and the spoile control; but you have to and using your feet is the first step to make it possible to move your arms out of their wedged positions. I'm all for IHOP but not without syrup. You will be so amazed that you see these flaws immediately. You see them because you have a fully integrated context. Double your money velocity 8 times. Think. You get to this money velocity by being conscious. You are truly on automatic by this time. Everyday there is a H?L; how many times the H/L spread is the optimum money velocity? I go by plateaux to get to the place to be. climb to a level cross until you have excellent skils; scramble up the talis and find your route to the lip and slip over onto the next platueax. We take climb after climb. And the altimeter is read by out money velocity. So the pay off is moving to anticipation; observing for flaws; having he KISS approach for each flaw. All of this is based upon the P,V relation. Many tools come from this. Indicators signals in sequences give you fingertip control. The best example so far of things working, is the ability of people to stay in trends. Next best is staying out of the market (This you will find, makes more money by saving it than most money velocities acheived by profits). You can see that people entering to play in congestion initally is the highest rate of losses. Loosing 5 to 7 points trying to get into the market does not teach much. Staying sidelined when there is not a strong trend is hard to learn but each time you sideline you learn more. Simply stated you do not have sequences to look at and see that there are flaws. When you do you sideline until you reach a plateau where you are usiing othr knowledge to play. We are trying to assemble and marshal human resourses. to get to the ore and energy needed we need to close down drama after drama (all tradegies..lol..), release energy into consciousness and go on automatic.
Sorry that was humor. I posted on this two posts back this am. I think the effort to do the work to get sequences makes more money per hour invested than any other effort. It is a terrific use of time when ever you are bored looking in from the sidelines.