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Correct. The business of traders is trading. If they can't find trades where they expect to find them, they will look elsewhere for them. Traders returned to the mean because that's where all the traders are supposed to be. But everybody else had moved on. So those who returned there had to...

What does it mean that "the mean was rejected"? Why was it rejected?

But they return to the mean in the first place because that's where all the trades are supposed to be. What happened?

I don't have tons of time for this, but I will point out one aspect of this morning's chart which will be useful tomorrow and the next day and the days thereafter. As I've said, the best opportunities arise in an environment of confusion. If everybody else is afraid and you're not, you can...

When Trading Journals Don’t Work (edited) Brett Steenbarger 18 Aug, 2005 The journal lacks specifics. Many times the journal becomes an outlet for the trader, a way of venting. While there is nothing wrong with venting per se, it is hard to see how *simply* venting in a journal can...

Pace, extent, and duration are always factors. Yes. What are they trying to achieve? Where are they doing it? Why are they doing it? What's in their way? If the right tick is insufficient, switch to a 15s. Same thing.

Try to avoid getting smothered in CWS. This is not so much a matter of I should have taken trade X or I should not have taken trade Y, but WHY you should or shouldn't have taken them. What made trades X and Y different from all the other trades that seem to look exactly the same but didn't turn...

This is NOT CWS. It need have nothing to do with entries and exits at all. It is rather an analysis of what did I miss that I should not have and why did I miss it? Was it the length of the bar, i.e., the length of the wave illustrated by the bar? An inabiity of price to get past a certain...

You're in the ballpark. Accepting the fact that the morning pretty much sucked, you can't know in advance what kind of morning you're going to have. Which makes understanding this interplay all the more important. Where might you have tried your first short?

The market moves in ticks. It doesn't care how you illustrate its moves. So use whatever you like. The pushes and pulls and rejections and continuations are there whether you see them or not.

Actually the change in behavior occurred when price stopped trending upward and began moving sideways. Why look for shorts? Why not look for a continuation? Yes, price drops below your line, but so what? Trading isn't about lines; it's about making trades. Traders looked for trades below your...

Replay it and watch the right tick.

Actually it's easier in real time because you can see price move. If you were to replay yesterday after this exercise, you might see just how easy it is. But if you're futzing around with lines, most if not all of it will just whiz right by. I suggest that anyone who is interested in this post...

No, I'm not asking a rhetorical question at all. This is what assessing the balance between demand and supply is all about, and there's no reason why it can't be done in real time if you understand what creates that balance. OTOH, if the trader doesn't know where the mean is, doesn't see the...

True, but it's all part of an ongoing drama. By now you all know what the mean of the TC is, where the LL is, where the LSL is. So given what the two of you (2) have said about these charts, and looking back at what I posted yesterday regarding a suggested entry (third chart), can you think...

Why at this particular level?

Start here.

Okay, now, using both charts, and using the red bars as characters, tell me the story of this move from the "thick line" -- which is the mean of the TC -- all the way down to the bottom.

What is the significance of each of these five lateral lines, in succession?

And the last two?