Tips on the Mental Game

Discussion in 'Psychology' started by BobbiDigital, Feb 1, 2012.

  1. Redneck

    Redneck

    The 2nd chart
     
    #91     Apr 13, 2012
  2. Redneck

    Redneck

    Potential layout
     
    #92     Apr 13, 2012
  3. Redneck

    Redneck


    BD

    No.. TIME is the EXACT SAME on all charts, just broken down into different chunks




    If one of your set ups is based on the close of the current candle – then the opening of the next candle is the entry

    It if ain’t – then it ain’t


    When and where we enter – Must be based on a set up(s)


    Now if you can get to the point of seeing how smaller TF candles builds a longer TF candle – then why wouldn’t that be a set up




    eta - if the longer TF is up... and the current longer TF candle is up... and price just bounced off longer TF support

    And the current trend on your trading TF is up..

    You sure as hell ain't gonna short it... and may even contemplate going long

    ==================================================================================


    The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain… The market is uncertain…


    I have no clue whether the next bar will be chop… a trend… a head fake… a stop run… or the mother of all trend bars…. And I never will


    Trade what you see – and to hell with the rest…..




    We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan…
    We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan… We have a plan, which include set up(s)… we trade our plan… We have a plan, which include set ups)… we trade our plan…

    Redundant ain’t I…. (just trying to drive the message home)

    RN
     
    #93     Apr 13, 2012
  4. Long term support was previously broken as well as this week's support line being broken yesterday. Screaming sell with the risk being aggressive buyers could have driven price back up to resistance line (based on yesterday's close).

    As is the case after a day spent breaking rules I didn't have my mental cap on yesterday. Two questions:

    1. My signals consist of patterns after I've identified potential peaks (tops/bottoms) or valleys (dips to go-with trend). I have never placed a trade after the close, right at the open of a new bar. Isn't taking signals then always entering at the open price of the bar (like I previously asked)? Forgive my ignorance. I need to understand this as I'm not trading off signals (or setups) evidently.

    2. Not sure I get the deeper meaning of small TF's building larger ones. Let me try, be easy on me:

    Say, you have 6 candles on the 5 min TF, and on the 6th bar price closes in the middle of the range - the open of the 30 min. Once price returns to the high - it is the 5 minute high and 30 minute high. As this move (cycle) continues it begins to drag in longer TF's - more TF's - until support eventually fails and it may or may not repeat the process to the down side. Is this the concept (and ambush points)? The key being the smaller TF structure of the longer TF bar (s/r holding, etc.)
     
    #94     Apr 14, 2012
  5. Throughout the day – focus primarily on the 30 min… while on the 5 min using vertical lines to segregate every 6 candles

    Essentially you’re focusing on the longer TF candles…. while- noting on your trading TF – how the longer TF candles are being formed…, by using vertical lines on your trading TF to define each 30 minute candle into what it is comprised of in 5 minute segments


    While doing the above, pay special attention to the time, and PA – just as the current 30 min candle closes… and a new candle opens…




    RN [/B][/QUOTE]


    Is the beginning of each bar a microcosm of the entire bar? (This would explain the importance of the 'open type' a la Market Profile)

    You said focus on the PA and time..isn't time fixed?
     
    #95     Apr 14, 2012
  6. Redneck

    Redneck

    BD

    Recall I said there are many aspects to PA… and multiple TFs….

    I also said; How small TFs build bigger TFs is but one aspect (Aspect # 1)


    My point to repeating this

    • I think understanding this first aspect is the foundation to understanding & tying all the other aspects together
    • I would like you to try and keep this aspect separate from the rest, and focus on it as you’re trying to understand the entire picture – please


    You typed

    Then you typed

    Exactly…

    And this is exactly what I’m trying to convey….And what I’m trying to get you to see/ understand

    Smaller TF candles are indeed a microcosm (I use the term microscopic view) into a larger TF candle being created – over the entire path – of (and as) it is being created

    ===============================================================================

    Then once you understand that discrete concept… the next step would be to grasp how a smaller TF – in its entirety – builds the higher TF…

    AND

    How a smaller TF is a microscopic view into that larger TF – albeit a discrete higher TF candle… or the entire higher TF chart


    But for now, and so we don’t get it confused – let’s stick to one higher TF candle being formed… and how that would look in a smaller TF


    ==============================================================================

    Taking ONLY this sentence, and using its information to create a candle on the higher TF

    1.) What would that specific higher TF candle look like – please describe it
    2.) Where, in relation to the preceding higher TF candle – does the higher TF candle described in your quote reside

    =====================================================================

    Here’s the exercise - all in the longer TF


    Ignore everything else you’ve posted, and focus solely on the above quote – please draw me a mental picture in your words

    FIRST

    Define the range (so we have context)
    You can use price levels (upper and lower)… You can use the preceding candle (its hi/ lo… or its open/ close) as the range… or you can use something else – but you define this range in enough detail so I can understand it / so I can see it (and remember I am a dumbass)

    NEXT

    Define and describe the preceding candle (so we have a reference)
    Is it an up candle… is it a down candle…or possibly is it a doji….
    How long is it (hi to lo)… how long are the tails (open to hi, and close to lo)… if they even exist
    Describe it in enough detail – that I can visualize it in vivid detail

    NEXT

    Now define and describe the current candle – using only your quote above
    Describe how it looks (its open, its close, the body.. the tails… is it an up or down candle…
    Describe where it exists in relationship to the range (you defined above)
    Describe where it exist in relationship to the preceding candle (you defined and described above)
    Last describe what it is doing using tour quote above


    Paint a picture so detailed, yet simple - that even I understand it… so that when I visualize it, there is no doubt we are seeing the very same picture

    =============================================================


    This may sound like a stupid exercise…. but think about it for a moment…

    Is trading not seeing what has happened…,
    Creating context out of that…,
    Figuring out where price is, and what it is doing – within that context…
    Then visualizing where price could go next

    ===========================================================

    In doing the above exercise – I’m trying to get you seeing (visualize) how a smaller TF is indeed a microscopic view into a larger TF

    How smaller TF candles fit together – to build a larger TF candle…

    Ultimately how a smaller TF is the very foundation of a larger TF – albeit a discrete larger TF candle… or the entire larger TF chart

    ==========================================================


    You now have two exercises

    Using vertical lines on a 5 minute chart to define 30 minute candles


    Verbally describing/ drawing a higher TF – with a range, and preceding candle – for context and reference… then a current candle based on 6 candles in a 5 minute TF

    This last one needs to be done with enough specifics, and detail..., yet remain simple enough – that even I can understand it.

    Without me assuming or creating anything additional – than the information you provided

    RN
     
    #96     Apr 14, 2012
  7. Redneck

    Redneck

    I do not understand this question… and if I were to assume – I could come up with a thousand different responses – such as;

    Time has fixed increments (seconds, minutes, hours, days.. etc.).. Yet even the atomic clock needs reset periodically

    ================================================

    The time the mkt opens / closes is fixed – to a point – because extraneous events do occur

    Time is fixed into the specific increment(s) – we define – as a TF on any given chart (1 min chart, 5 min chart, 30 min chart, whatever TF chart)

    The time a 5 min candle opens and closes is fixed… as is the time all other candles open/ close - on their specific TFs

    10:03 AM and 13 seconds – is the same time across all charts – what is different is the state of the current candle being formed - on each discrete chart (could be one candle’s hi, another’s lo, and a third candle’s body.. or something totally different)… AND this is exactly what we must visualize, then exploit

    ==========================================================

    Time is fixed… yet time is not fixed… what is absolutely fixed – is what is occurring at any specific point in time…

    Yet what is occurring may seem incongruent when viewed across multiple TFs…

    What we must do is reconcile it… so it is congruent… so it all ties together… so it paints us a picture/ tells us a story

    This is when a significant turnabout will occur :)


    RN
     
    #97     Apr 14, 2012
  8. Say, you have 6 candles on the 5 min TF, and on the 6th bar price closes in the middle of the range


    Taking ONLY this sentence, and using its information to create a candle on the higher TF

    1.) What would that specific higher TF candle look like – please describe it
    2.) Where, in relation to the preceding higher TF candle – does the higher TF candle described in your quote reside



    1. Range

    Preceding candle:
    Open: 137.83
    Close: 137.27
    Range: 137.21 - 138.04

    2. Describe Preceding Candle

    Down Candle with a long body
    Range: 137.21 - 138.04 (83 cents)
    Open to High Tail: 21 cents
    Close to Low Tail: 6 cents

    3. Describe Current Candle

    Down Candle with body in upper portion of it's range
    Open to High Tail: 3 cents
    Close to Low Tail: 33 cents
    Range: 136.58 - 137.30, 'overlaps' preceding candle's range by 9 cents

    After a trend bar down, price opens near the preceding candles low.

    1. It continues lower on the first 5 minute bar to the previous day's low.
    2. On the second 5 minute bar price bounces back thru the current 30 minute candle's open price by 3 cents.
    3. The 3rd, 4th, & 5th 5 minute bars make a new low and form a bottom
    4. The 6th 5 minute candle goes up returning to the center area of the 30 minute candle where it closes - 30 cents below preceding candle's low
     
    #98     Apr 16, 2012
  9. Hopefully started seeing some of this today. I was trying to extrapolate out PA across longer TF's as the day unfolded.

    I was expecting another wave of selling thru the day's low (SPY) like Friday, but because the open price was 'in play' perhaps I could've anticipated a rally.

    Based on prior days and the first 30 minutes of trading or so, should I strive to 'visualize' the rest of the day?
     
    #99     Apr 16, 2012
  10. Longer term context
     
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    #100     Apr 16, 2012