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Given the rapidity of the rise, however, the decline is/was likely to be as rapid or nearly so due to the fact that there were fewer trades at each level on the way up. This means less "support" on the way down. Therefore, the likelihood of a retracement in cases such as this, at least on the...

Yes, you expressed your point well. However, what matters is the turn, not how it's illustrated. For that one doesn't need to use candlesticks of any type. Price doesn't care one way or the other. In fact the turn occurs whether or not one is using a chart at all. If tighter stops are the...

Lest this be overlooked, it's an excellent example of "trading in foresight" (as opposed to "here's a trade I took").

Don't forget that there are five phases to this, not two.

Don't forget that there are five phases to this, not two.

Basic info: tracking stocks and whatever they track are not going to be the same price. As far as QQQ, just type in "QQQ". Seconds. If you "don't get" why they're not the same price, just go to the PowerShares site and I'm sure you'll find an acceptable explanation.

QQQQ was changed to QQQ three years ago, and I thought the answer you received was perfectly clear. A tracking stock isn't going to be the same price as the index it's tracking (e.g., SPY, DIA). If you believe the answers you receive are "fucked up", try Google.

Figuratively speaking, the small trader should imagine himself as a hitch-hiker in the market. For the ordinary hitch-hiker, someone else supplies the car, chauffeur, oil and gas. When he thinks the car is about to go in his direction, he jumps aboard and rides as far as he thinks the car will...

There is also the niggling problem that if one changes the bar interval (from 5m to 60m to 15m to daily to weekly to whatever), the "doji" or "hammer" or whatever disappear. What does this tell you about the value of dojis and hammers, etc.?

To start, there are three types of technical analysis. TA began with the study of price movement. It then begat the study of patterns. This begat, a few decades ago, the use of "indicators". These three areas are not necessarily discrete; many traders combine them in a variety of ways. As for...

I wound up reading again that 10/11 arc referred to above. It was a lot more interesting than I remember, sort of an illustrated chat log. There were some excellent questions, and the questions were very likely much different in "real time" than they would have been had we had been pouring over...

If you're referring to the three-week-long demonstration that began Jan 1, it's at the beginning of the Ghost thread, posts 1 and 2 and following. There are also several series of hindsight charts at the beginning of the Son thread. None was done for the Bride thread, the "bare-bones" thread...

Whether it is cut and dried or not depends on what the trader needs and how damaged he is. The SLA can be very near mechanical if the trader needs it to be, and the decision-making process becomes effortless if one follows the rules. However, if trading it this way takes all the fun out of it...

If you find that there's too much information, then focus on your objectives, on what you want to get out of this. Then determine what you need to know in order to reach those objectives. If a mechanical approach appeals to you, then skip all the observation and testing and get right to it with...

As I posted in the Ghost thread: If past history was all there was to the game, the richest people would be librarians -- Warren Buffett

It should be remembered that there are five phases here: observation, backtesting, forwardtesting, simtrading, real trading. First, one must observe in order to find those "tells" which show the market's hand. In broad categories, these tells will manifest themselves in reversals, breakouts...

Using this chart, a short at 76 is called for. If your entry is tripped and makes it to 73, you have your lower high. If it's tripped and doesn't make it to 73, then you scratch. Think of it as a form of "front-running".

But you're creating the overload. 1. Track the balances between supply and demand with straight lines. 2. When price takes off in one direction or the other, wait for a retracement. 3. Enter on that retracement, a few ticks above the trough of a \/ retracement or a few ticks below the...

Welcome back :)

No lines, no zones, no ranges. Just observe. If the suggestions I made in How To Do It are insufficient, then study Section 7 of Wyckoff's course.