A simple price action approach
- Thread starter metal
- Start date
my dearest friend,
just reading your first paragraph gives me the immediate impression that you are totally misguided about trading per se and about characteristics of any successful trader....
where did you get all these nonsensical ideas in your head???????
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unless you are willing to change completely from where you stand now in regard to what a successful trader is like and what trading for a living is like....
there is absolutely no chance whatever.... that you could be even remotely successful at trading for a living....
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just to help you get started....
a successful trader has definite plans of action in his/her trade. the trader knows from whatever chart he is using.... where the entry point is going to be even BEFORE the price gets there....
if you don't believe me.... just ask any successful trader....
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concurrently, he will also place his hard stop immediately, to protect his acct in time of eventuality....,
then follow up with trailing and/or breakeven, or breakeven +1, +2, +3.... depending on trader's goals and objectives.... which you can see in the attached pix.... the 10, 20, 30 dollars profit....
normally, for stop.... the trader will place a tic or two below previous bar low or high, depends on a long or short entry.... a personal preference....
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amongst others, a successful trader will not say that he is going to make as much money in trading as he can....
that is a misguided and misgiving concept.... only possessed by newbies....
the successful traders will instead say that he will take whatever the market will give.... for that particular session....
see the difference, pls?
for no one knows for certainty, what the afternoon session was going to be like.... the predictions by most gurus about tomorrow or longer.... are just guesstimation in a hope mode.... at best.... is my humble one man opinion.
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and only once in a long long while, that a seemingly inconsequential trade will turn into a giant killer.... but that is only a rarity.... (see attached)....
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you do not have to agree with me, alright?
but that is just a tip off the iceberg....
how would i look, if i were to say something to misguide you in front of all my bro and sis traders, some of whom might be even light year more successful than my humble self.... cheers
yes, thx, i shall remember and do that next time, K?
it is just one big video game,havent played video since daughter was 5 and it was super mario,remember all the coins,skip the steps in between ,just wait for the coins,u dont have enough info for 1 and you dont have the right attitude ,if you see a five dollar bill on the sidewalk,pick it up,if u see a penny,keep walking,trade the layups or not at all,if you can't see the layups,don't trade,go back to the drawing board and learn more..tl's are not enough info
Dow Daily compared to the SPY attached.
As I said, these lines and projections were made months in advance and the same techniques apply in the one minute time frame. If you use the major swings you normally have lots of time to prepare for the trade set up to appear on the 1 min chart.
Volume intraday, daily and weekly was saying the market was in the grip of the sellers so it makes no sense to hedge a great short. Since the daily signal the Dow is approaching a 1000 point drop.
The big issue is what's next? This weekend's review is going to be interesting as we approach a major decision point. Will PA say the projection is on?
As I said, these lines and projections were made months in advance and the same techniques apply in the one minute time frame. If you use the major swings you normally have lots of time to prepare for the trade set up to appear on the 1 min chart.
Volume intraday, daily and weekly was saying the market was in the grip of the sellers so it makes no sense to hedge a great short. Since the daily signal the Dow is approaching a 1000 point drop.
The big issue is what's next? This weekend's review is going to be interesting as we approach a major decision point. Will PA say the projection is on?
Xpurt,
In re-reading the thread I've been thinking about the lower green line you posted in this pic earlier on.
I notice it "worked" as S/R at 5am and again around 9am, but what caught my eye is that it didn't start in the traditional way. I had never considered this before, but we always draw trendlines from a specific price point (usually a key swing high or low in the timeframe) but here you have the line starting at a seemingly insignificant location.
Just saying, if I were watching that chart in real time and it was around 8am... I could have drawn a top channel line like yours starting on those two highs. But I'd probably have copied the parallel bottom rail down to the 4am low. And I'd never have thought to draw a standalone trendline there where you have yours. I see your green arrows, which suggests to me that's what would have triggered you to draw the line.
Don't want to get too far ahead just yet as I'm still working on basic channels. But it was something I had on my mind and thought I'd mention it. Enjoying your contributions to the thread.
In re-reading the thread I've been thinking about the lower green line you posted in this pic earlier on.
I notice it "worked" as S/R at 5am and again around 9am, but what caught my eye is that it didn't start in the traditional way. I had never considered this before, but we always draw trendlines from a specific price point (usually a key swing high or low in the timeframe) but here you have the line starting at a seemingly insignificant location.
Just saying, if I were watching that chart in real time and it was around 8am... I could have drawn a top channel line like yours starting on those two highs. But I'd probably have copied the parallel bottom rail down to the 4am low. And I'd never have thought to draw a standalone trendline there where you have yours. I see your green arrows, which suggests to me that's what would have triggered you to draw the line.
Don't want to get too far ahead just yet as I'm still working on basic channels. But it was something I had on my mind and thought I'd mention it. Enjoying your contributions to the thread.
Quote from dv4632:
Xpurt,
In re-reading the thread I've been thinking about the lower green line you posted in this pic earlier on.
I notice it "worked" as S/R at 5am and again around 9am, but what caught my eye is that it didn't start in the traditional way. I had never considered this before, but we always draw trendlines from a specific price point (usually a key swing high or low in the timeframe) but here you have the line starting at a seemingly insignificant location.
Just saying, if I were watching that chart in real time and it was around 8am... I could have drawn a top channel line like yours starting on those two highs. But I'd probably have copied the parallel bottom rail down to the 4am low. And I'd never have thought to draw a standalone trendline there where you have yours. I see your green arrows, which suggests to me that's what would have triggered you to draw the line.
Don't want to get too far ahead just yet as I'm still working on basic channels. But it was something I had on my mind and thought I'd mention it. Enjoying your contributions to the thread.
Yes there are several reasons for that but I can see from the responses it will derails us.
You shouldn't be trading if this is truly how you've been approaching trading. It's just a hobby to you or it's something that gives you a nice distraction from other tasks you should be doing at your other job.
There are dozens and dozens of different ways to identify whatever someone calls support/resistance. Further, there are hundreds of different trade methods being used by traders to trade price action when price reaches support/resistance. Simply, two traders that say they are using s/r analysis will commonly have different results.
I'm not saying support/resistance is subjective. In contrast, it can be very objective rule based. I'm saying that just because you say you use s/r while someone else say they also use s/r...your trading results will consistently be different. The same is true for indicators like price moving averages, double tops/bottoms, rectangles, tirangles, trendlines et cetera.
However, the above is what I consider a minor reason why there's a difference in trading results between traders. The primary difference is stated in my prior message in this thread involving critical variables in a trading plan that have an enormous impact on your trading results.
* Market experience
* Discipline
* Money management
* Position size management
* Proper capitalization
* Stress management
* Proper broker platform
* Proper trade workstation
* Proper at home trade environment (retail traders)
Yet, if you're not a discretionary trader and you're using automation trading system. Yeah, two traders using the exact same coded system while trading the same trading instrument while using the same broker and execution platform...they should have very similar trading results.
Mark