I only write buyers or sellers in command because that is who is really in command at that point. My mentor uses Price.... PRICE. He also looks at past data, like previous days and a daily chart. That is all. Is it that hard to understand? I understand it now and that is what I've been using. I don't know exactly how to use volume with price movement myself, maybe I could attach a volume pane to my chart, but I don't think it would help. There is no technical indicators though, you just must realize that... it is price movement that we are trading. We are trading price movement anyways, so the ability to trade the price movement I believe is one of the greatest skills to have now that I know it. All those technical indicators seem... beyond useless to me. But that is my opinion, believe it or not, I know I'm going to be making some $$$ from the knowledge I have because I already have proven it. *and will prove it in real once I get some days off of school* Volente as well has said he does this. I don't know if he uses any other indicators, but he has said he uses support and resistance as a major part of his system. I use only price, and support and resistance in ALL my trading now. I have been using this for Forex and been more successful than I have in the past. So, that is all... there is no technical indicators. Look at all my previous charts, that is all I see on my screen everyday now. My mentor has tought me some great tricks that are easy to point out, but I'm sure a lot of people don't know about to figure out who is in control and who is losing the battle. I just think it is amazingly simple, and people can't except the fact that it can be. Sure there are times when it goes wrong, maybe 1 or 2 bad trades in a day... but so far, I have had maybe a total of 4 bad trades (out of around 350 to 500 in sim), 0 bad trading days, and been extremely profitable. I'm not in any way trying to brag, but I feel sorry for people that try and complicate it and it doesn't work as well as they need *if at all*. If they do make it complicated, but it works for them, I congratulate you, it can be done, but this way works for me, Volente as well, and my mentor, who seems he could practically stop trading forever now, *I have seen his car and a picture of his house, so I know* and that is that. Sure you can ask a million questions about "What if...." of course there are situations this doesn't work. Some days are just insanely hard for this to work. I even made a mistake, but was able to catch it. I know that with experience I can get a lot better at realizing who is in control and identifying S&R. I have tried doing this on several futures, like S&P mini, and Russell 2000 mini, (although on the Russell, it is a lot more flexible). So it can be done. Is it really that hard to believe how things in life can be easier than they seem.... I guess with trading it can possibly be that way as well. EDIT: Here is something that just came to my mind. The chart is a battlefield. One side is always in control, or it is generally a draw. You can trade the draw, just must be cautious that a winner could appear sooner or later. Or you could be on the side that is winning. Now if the side is winning pushes all day long, and gets them really backed up to their last line of defense, they are forced to retreat. But if they are trully strong, and have backup *which is a lot of times true* then they will stop the movment, and begin moving the price the other direction. So you want to be right there at the last line of defense, you just want to know who is winning. Not as detailed as I would have wanted to write that, but it is generally the same concept. Long at support, Short at resistance. Look at a chart, identify support and resistance, try and identify who will be in control for the day, then realize in every case I have seen, if you had executed trades in the way i said to do so, you would be winning all day long. With the exception of a few breakouts, this is where knowing who is slowly gaining control, comes into play, and then you will be on the right side, and you don't have to sell all your contracts, you can hold onto the rest to ride that breakout.... all day long if you wanted. That is how I believe my mentor does it from what I see on his charts. Is there any more explination required... I don't know how much more I can handle the What if.... scenarios.
http://img341.imageshack.us/img341/8517/snapshot408mc.png Here is my perspective of what happened yesterday.
your chart looks good, and i would say something similar looking at it today, but when you´re looking at it realtime, it´s still beyond my imagination how someone can think it´s easy . For every example you write the opposite can also happen. Like - testing a support line for the third time - then breaks through. Making higher lows against a resistence line for a long time - and then suddenly price drops. I´m not at all saying that it´s impossible to predict this, but you have to add a lot more to the mix to be able to say who´s in command. Of course, you can just skip that part and buy at support and sell at resistence, might work /Stalker
Jmowery, yesterday's first pattern is as call an ascending triangle. http://stockcharts.com/education/ChartAnalysis/triangle-Ascending.html From 9:45 to 10:45 there was an invesre head and shoulders. http://stockcharts.com/education/ChartAnalysis/headShouldersBottom.html All of these patterns are bullish.
nice charts volente, but how reliable are these patterns? I have seen these formations giving false "signals" several times. But maybe I should study them more closely. thanks, Stalker
I was actually going to ask about the reverse head and shoulders... I thought the middle section had to be a much greater distance from the shoulders, but I have seen this formation many many times.
If it was easy... everyone would be doing it. I'm still shocked you don't think it is possible yet I myself and volente have proven it. I guess some people just prefer a harder way. But, can't convert everyone, but I'm happy to know what I know, everyone else can continue their way, but I have proven that it is possible and will be trading it from now on until I see any advantage to adding mathematically equations to the mix. *And I would major in mathematics or computer engineering if I wasn't going to trade*
You misunderstood me Movery. to the contrary, I strongly believe that it´s very important to incorporate s/r no matter what strategy you use. I´m just not sure how to use it all the time yet. Some situations are very clear, but others are still fuzzy to me. The only thing i´ve been watching for a month is s/r, price/volume and trend channels. When i said other information i was not refering to TA indicators but rather t/s, dom, tick, bid/ask volume or something like that... best regards, Stalker
Jmow... Thanks a lot. Your charts and suggestions have been an inspiration. I decided to ditch my "lagging" indicators finally. I also decided to quit scalping, or getting in and out too often. I've been doing this for the last 3 days now. I am also taking onto more of a swing trader approach. Here is how my trading went this friday. It was really good. It is great to know that by looking out for major turn around points, that is all you need to know. Of course, everyday hasn't been this good. Thats right folks, classic chart patterns and basic support and resistance is all you need.