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40D, I think you have stated this before, but it looks like you only play reversals. "It is that simple - look for the higher low at support and look for the lower high at resistance and trade the failure." Is there a reason you do not trade continuation when price blows through a s/r level...

These bounces off the opening range midpoint, like we just did at 19, seems to happen so frequently that it looks like one could trade only those and be successful.

MadeMan, On you previous 60 min chart, are you just plotting rth prices and not the overnight action. I ask because on 2/2 there was a spike down to 4085 that is not shown on your chart which really messes up you channel points.

4D, Thanks for sharing your experience in mentoring. I am sure that by seeing your actual results that your friend was more motivated than most mentored students. Plus you started him in the right direction from the git go. Please drop a line here now and then on your friends progress.

DB, You have stated numerous times that hardly anyone understands support and resistance. One day when you are feeling a bit bored, could you elaborate a bit on what you feel or have observed to be the most common points of misunderstanding and perhaps offer some points on the correct usage...

I'll take it for free if you pay the postage.

DB, You may have responded to a similar question in the past, but I have not found it. It is when there is a reasonable channel with a discernible midpoint, is it a reasonable expectation that a new channel can be established from that mid point to the previous channel midpoint as suggested in...

KP, I'll get the ball rolling with repeating something that I believe either DB or 40D said recently which makes the pattern/behavior concept more clear. If you are just focusing on a pattern, like a pattern recognition program would, you will be taking trades in areas where low probability...

40, Have you thought about starting a journal? You seem to trade more on s/r and I am sure you would have many followers.

If I may throw in my 2c worth. Although some traders profess to using ma's profitable, (usually along with some PA) their value can be negated if one simply understands and accepts that price behavior morphs over time. Width of channels, time between peaks and troughs, trendiness, etc. Todays...

Db, Does the low volume at the top of the channel in June vs the high volume now at the bottom have any significance to you?

Yes it was very similar, if you knew where to look as we did....beforehand. The 60 min. was just like reading a book with a predictable plot. Good guy gets the girl. :)

Same to you Db!

No KP, he is referring to a chart that I posted then removed as it was not really relevant to this thread. Sorry.

"Finding the midpoint of the range – where the largest number of trades are occurring -- may be useful since price sometimes ricochets off the midpoint, or launches itself off the midpoint if it has settled there."

The premkt range from about 4:30 to 7:40 established a range with a mid point "fair value" about 4319. Around 8:15 there was a breakout of this small range and a new range was established. The fair value of the previous range was tested twice. The second being a slightly weaker test "B"...

Trade A was not something I considered. Looked more like a data problem. Trade B was a pullback to the pre-open range as I had drawn it. On the 1 min, there was a small line break and pullback for entry.

Thanks so much for the clarification. One less thing to worry about.

As I start contemplating my retirement from a regular job, I am trying to better understand various laws that may impact me. One is the treatment of trading income as it applies to social security income. I am not at full retirement age so I understand there is a limit of about 15K on earned...

It really is amazing how channel boundaries function, whether the mechanism is mean reversion or mass observation of the channel or some mixture. In the end it just seems to be an expression of human fear and greed at work. Very interesting area now, as always.