We shouldn't neglect the levels below us either. On the daily 3420-15 looks like a strong level and coincides with the mean from the last up channel. On the hourly the mean of the red channel is 2515.
https://www.youtube.com/watch?v=nKFLGlV5T8I She nails something here - food for thought over the weekend
I listened to it and at the end, IMO it falls short. She doesn't really answer the question. I will listen one more time. She alludes to using intuition, then says get in tune with how your brain works and then says "try to figure out what that guy over there is going to pay tomorrow or next week". Maybe I am missing something , curious to hear you thoughts on it.
1 09 minute mark, starts talking about ambiguity then trails off into jibberish, the brain this and that buy a box of nails and a board,if you are right handed the hammer is in your right hand, the nail in your left,your eye is on the nail(target) you pull the hammer back (setup) to set it in wood (entry ) and then move hand(stop) and pound it in then stop (exit) ,get a new nail repeat, no ambiguity ,no brain trailing off, just a job
I like you analogy ammo. I think what she nails is why people who have a trading plan fail to follow it. The brain creates an emotional response to uncertainty that can overpower our desire to stick to our plan. This then causes a negative feedback loop because we now feel bad that we didn't stick to our plan which increases our emotional response and increases the likelihood that we fail to follow our plan. If we fail to take a trade even though we planned to take it - it should tell us that our emotions got in the way. This is a good thing. When emotions are high we shouldn't be trading. We don't need to feel bad about this - we need to clear our heads and come back to trading when we are emotionally ready.
She is essentially saying the same thing as Douglas regarding the environment of uncertainty and how we (our brains) deal with it, and this is essentially what the SLA attempts to address: revealing the demand/supply order out of what appears to be chaotic or random movement. If one can follow the rules, the SLA short-circuits all that and forces the trader to focus on price and price alone. If one doesn't understand what one is looking at, he will revert to a more primitive fight-or-flight response. The gurus will counsel the trader to suppress his fears -- or "control" them -- and persevere, steadfast. We all know how well that works. The more obvious and effective solution is to learn just what it is one is looking at, then what to do with it. Fear, confusion, ambiguity cease to influence the situation. If one is afraid of what he faces or doesn't understand it, will power is a poor coping strategy. Rather than hammer the nail, he is more likely to hammer his thumb.
nail your shoe to the floor,put your foot in and lace it up,now stretch the other leg as far as you can,arms out as far as the will go and go in a circle, this very finite circle is the entire world for a person fooled , mesmerized, imprisoned and dependent on because they have never lived without, nor recognized them as an anchor and tried to be free of, their emotions. The vast majority of these people could simply accept the premise to forgive themselves and everyone who ever trespassed against them,unload all that baggage,unlace the shoe tied to the floor and walk away... the weakness is the fear of leading a life free from thier security blanket, their emotional woes, their core of habitual mind usage,who would they be if they gave up their woeful or superior imaginative vision of themselves, we are all afraid of the unknown. Now if you are a dishwasher,dishes are your world,trader,it's the screen, usher at the theatre,tearing tickets and sweeping up popcorn ,none of these jobs require more than the slightest emotional involvement. The job in each case is simple to define and execute. You work, you complete the task, you get paid. Those who see things simply,unencumbered by that backpack, soon learn that there is a whole world out their to see, Not sure if you were the pro gambler , to find out ,i would have to go back and then have to retype all this,but lets use that for an analogy You probably specialized in one thing ,say texas hold em, and dabbled in several other forms of gambling before choosing it, Trading is the same way,you can swing trade,build a portfolio and make 4 adjustments a year,scalp 5 minute bars,learn fibs.elliot wave,market profile,astrology,options(there are another 20 ways to trade those alone)..etc..etc the 2 points 1. dump any thoughts about emotions,any emotions you have leave them in the drawer while trading,the usher leaves his car in the lot, would be in the way in the lobby 2. expand your horizons,this style of trading you are attempting to learn works for a very few, the rest are like all the sheep in the casino's that get sheered by the hour in droves ,if you are going to pursue it, unlike sheep or cattle who are unaware that they are doomed, learn to read the wolfs/farmers movements .learn the macro, you want to pick off the market like you did the noob gamblers,in the meantime you are learning how to trade like a noob
I know we don't look at tick charts very ever in this methodology but old habits... Sometimes there is a lot more clarity with tick charts - at least to my eye. If we look at the price action over the last two days we can see how well a channel on a tick chart captures the entirety of the move. The overnight price action registers as overbought and then plunges back to the bottom of the channel before trying o move lower and failing two times and then reversing. This swing defines the range we spent most of the day in. The mean of this range is nearly yesterday's low. I've also included a look at the daily chart. We can see how well our down channel is working with the bottoms the last few swings. Have a great weekend everyone.