Ok-I understand now. The 29 refers to number 29 on the over-analysis example I posted on page 2. Number 29 was "Sellers seem to have resumed control". Got it--Izzy
Here is a recently posted entry/exit chart posted by a scribble student. Notice how the steep diagonal lines offer much more ability to just buy or sell on either side with a buy stop or sell stop. The horizontal scribbles would actually have you in the trades later than if the trader would just buy or sell on a cross of the diagonal lines. There are no stop outs listed on this chart. I realize that this chart is being posted in hindsight by the student, but the first thing that should be done is to establish stop loss areas and this chart still needs that done. The focus here is on being right instead of trade management. It's ok to be right, but I would make a recommendation to look at potential loss first.
Weren't Broken Records ltd taken over by Flogging a Dead Horse Inc recently? I thought I saw that on Bloomberg or something....
If the ***** would just read the material, he'd save himself a lot of time. In the meantime, the number of views of the Foresight thread is mushrooming, so at least a few people find it useful.
Speaking of useful, I'm discovering that one of the advantages of "likes" is not only that they remind me of something I posted that I'd forgotten but that at least one person found beneficial. If several find it beneficial, all the better. For example, Today was an excellent example of the "challenges" facing those who want to trade AMT intraday. While yesterday was as easy as falling off a log, today one was more likely to be rolled over. The day illustrated the principles of AMT just fine. The problem was trading it. Trading the SLA is about as straightforward as it gets. One knows where to enter, where to exit, when to stop. The AMT, however, requires a sensitivity to price movement -- i.e., trader behavior -- that is much greater than that required by the SLA. One can overcome this, however, by being stringent about the rules he follows to engage the market. For example, if one is going to trade only the extremes, which is a sound approach, what is his entry trigger going to be? What are going to be his criteria for determining whether or not the trade is successful? Where is he going to exit if those criteria aren't met? What are his expectations for the trade? Does he expect price to reach the opposite extreme? What is he going to look for to tell him that it might not? What if he's wrong? What are his criteria for re-entry? Today the initial long was rather straightforward, though taking it took a bit more confidence than the trader who is new to this might have. And given the speed of the market, getting filled might have been an issue. Even so, let's say that trader got in and wanted to ride the trade all the way to the opposite extreme. But the opposite extreme was at 60 and price turned at 59. Was this enough? What could have told you to exit the long and look for a short? Was there a fail? Was there a lower high? Where, again, would your entry trigger have to be? How much room would you have to give it? Could you tolerate the room required? Then there was the drop to the halfway level. Yesterday, price slid right through, no problem. Today it reversed. What to do? You can't go long unless you exit the short. What criteria are you going to use to exit the short? What then are the criteria you're going to use to go long instead? And what about the exit criteria? Can you be satisfied with setting a stop at breakeven, then sitting around for two or three hours waiting for your trade to go in the desired direction only to have it reverse on you unexpectedly and stop you out at breakeven? Above all, remember that the market does whatever it has to do to teach you those lessons which will lose you the most money (the market, of course, is not sentient; the games that are played and the "lessons" that are learned are games that the trader plays with himself, and the lessons are those that he convinces himself are being taught by something outside himself). No one can tell you what you should want. You may find that the easiest trades are the first one or two and that, over the long haul, it's best if you just quit (in all honesty, I would not have been here yesterday afternoon if it had not been for you guys). Or you may find that trading ranges at all is just not your cup of tea, and that you trade better by waiting for trend days (they don't take long to show themselves, after all). But whatever you decide, remember that there is a structure to this upon which you can rely. It may not accommodate your every whim, but neither is it random. Traders are looking for trades just like you are. That what you're looking for does not at the moment jibe with what they're looking for is to be expected. You do, however, have to decide just what it is you want and what you're willing to settle for. When someone starts talking about "feelings", freeze your intake valve. This isn't about feelings. It's about ranges, the medians of those ranges, and the limits of those ranges. The principles may not play out according to the book on any given day, particularly if other traders are just as confused as you are. On days like today, learn what you can from it, apply what you learn to what you already know, and to hell with the rest. If you need to tweak something here or adjust something there, try it. But don't junk your whole tactical set into the dumpster and start all over again for the sake of a day that may not reoccur for weeks. Or months. Or ever. Rather shrug your shoulders and start fresh tomorrow.
QUOTE="Buy1Sell2, post: 4106030, member: 45994"]There are no stop outs listed on this chart ... the first thing that should be done is to establish stop loss areas and this chart still needs that done. The focus here is on being right instead of trade management. It's ok to be right, but I would make a recommendation to look at potential loss first. [/QUOTE] If only you would take the time to understand what it is we are doing, you might actually know that the Scribbled Line Approach is designed to let the trader know where to enter, where to stop out, and when it is time to exit. You also might find it helpful to use the legend this individual includes in every single post. We call them exits, rather than "stops" and "profits" because most of us understand that "exit" could be with a loss or a profit, but in either case, it is an "exit." Others who have a more expansive and open intelligence than you no doubt wonder in concert with wrbtrader: Remarkable to me is that you are obviously so angry with one individual proponent of this approach, that you would continue to make yourself look more and more ridiculous as you wage war on the concepts of support & resistance, simple trendlines, and the facts of supply and demand. In the end, that is all we scribblers are applying to our analysis of our charts. And they are facts: price stopped rising here, it stopped falling there, this trendline tracked supply until its break indicated that demand had taken over and vice versa. Whether anyone can use this information to trade is the subject matter of our threads. If you do not wish to find out for yourself, that is fine with us. But why this crusade of yours to make us stop? Is this no longer the free world? You fail to see so much. For example, do you not see that the only ones liking your posts are your fellow trolls, blind followers of your arbitrary methods, or those who, like you, are so pathetic in real life that they have developed a toxic hatred for a particular anonymous internet presence. At this time, I would wager that most here at ET following this pathetic soap opera have come to the same conclusions about you and other DbPhoenix persecutors as wrbtrader and myself: