2+2=4 After All!!!

[oldtime]

ah, it's just like fishing for crappie. In the springtime it's so easy it's stupid. You can do it, I can do it, and all the grand kids can do it.

In the summertime, they're still down there but even for the most experienced fisherman you'd swear it is darn near impossble to catch them.

 

[Redneck]

Quote from Chris_Anonymous:

I paid absolutely no regard to context.

Recall I said context is one of the four necessary skills

Review the below attached charts

Both are the same stock, over the very same TF - however the first is a smaller TF, the second a larger

=================================================

Take your setups and see if you can identify low risk entries

================================================

Context, and specific context at that – is absolutely necessary

Then you can utilize your setups as you identify them – within the context they would be valid in

A HL when price is hitting / about to hit an upper channel line – is NOT a valid long entry

A LH when price is hitting/ about to hit a diagonal lower channel line – is NOT a valid short entry

PA develops vertically…, horizontally…, AND diagonally


Btw

I omitted the price, volume, and time on purpose – I don’t want anyone trying to trade this stock based on crap I post



CA

Any and every short cut you try and take – the market will make you eat it – in spades

Imo – psychology is still the most important – but all four are absolutely necessary


RN

 

[Redneck]

Wish I knew how to attach multiple files in one post


RN

 

[Redneck]

Quote from oldtime:

ah, it's just like fishing for crappie. In the springtime it's so easy it's stupid. You can do it, I can do it, and all the grand kids can do it.

In the summertime, they're still down there but even for the most experienced fisherman you'd swear it is darn near impossble to catch them.

Crappie or Brim (Bluegill to Yankees) with fried taters and onions

Dipping sauce for the fish made from ketchup, horseradish , and french dressing

That is gooooood eatin

eta - use a depth finder and look for Christmas tree patterns (it'll be the crappie stacking up) not kidding either

RN

 

[NoDoji]

Quote from Chris_Anonymous:

The reasons I have always gone back to the drawing board in search of new setups were two-fold:

1. Distrust in my setups. Anytime this occurred it was due to the fact that I had been emotionally trading. I had been emotionally trading because of several reasons:

- I was stopped out and didn't actually feel comfortable with my max risk, leading to doubt regarding my trading.

- I jumped the gun or took a setup that wasn't a valid one in my plan.

- I chased a trade or missed an opportunity altogether.

- I was trading setups that either weren't statistically proven to have a positive expectancy over the long-run or I hadn't back-tested enough.

OK, above you make it clear that the failure of your method is that you're not following your method, but earlier it sounded as if you were saying your method doesn't work.

Quote from Chris_Anonymous:

2. This is the more important reason, and it occurred more often: I, as Mark Douglas wrote, had core beliefs that I could find a simple setup that would work without much more work or effort required.

What I mean by this is that for months I've always figured that I'd do like everyone said and would keep things simple. Well simple to me has also meant cutting corners at times in my life, and so although I may have known price action basics and how to trade trends, I was always convinced that if I could find a simple setup (such as HH/HL or LL/H) that would be all I needed. I paid absolutely no regard to context. Instead of trying to trade according to price action, I figured I could simply trade every price swing, and from pivot to pivot, and somehow I'd find a way to make it work.

The "context" you refer to is the reason I implemented specific trade filters. Every pivot that results in a significant price swing starts with the high or low of a previous price bar breaking in the direction opposite the previous price swing. But not every break of a previous price bar results in a significant price swing. That's where context comes in and I created a list of filters to rule out low probability trades, or trades where a survivable stop loss would be far greater than the potential reward.

Quote from Chris_Anonymous:

[All along I figured psychology would come later once I found the grail or the simple setup that works every time, but that line of thinking IS the psychology others talk about. I have setups now, and I need to practice employing them every day in the market, and I need to practice reading price movement every day until it becomes as intuitive as reading a book or as intuitive as driving a car.

We were just discussing this today in chat, how high probability setups are a dime a dozen. You can find them in books and on-line, explained concisely. Finding a particular Holy Grail of entries really is simple. What's so difficult (and is the part of the equation most aspiring traders never master) is disciplined trade management that preserves the edge inherent in a well-defined trading plan.

So, you had an Aha! moment. Now make it real through your actions.

You can't think your way into right action, but you can act your way into right thinking.

 

[Chris_Anonymous]

So, you had an Aha! moment. Now make it real through your actions.

You can't think your way into right action, but you can act your way into right thinking.

NoDoji,

I've started sim-trading my method. I'm only trading according to my plan.

The "context" you refer to is the reason I implemented specific trade filters. Every pivot that results in a significant price swing starts with the high or low of a previous price bar breaking in the direction opposite the previous price swing. But not every break of a previous price bar results in a significant price swing. That's where context comes in and I created a list of filters to rule out low probability trades, or trades where a survivable stop loss would be far greater than the potential reward.

While I am practicing through sim-trading, I'm going to analyze to see if I can implement filters in order to create a much more specific context in relation to my setups.