Bride of If You Can Draw A Straight Line

[dbphoenix]

DB:
First long: break out opening range. Then entry is at 6:45:34PST @92.5 (should be 2nd bar after the first blue arrow in the chart). Thank you for your advice. I should hold the first long so there should not be 2nd long. I did hold the last long.

Are you saying 6:30 to 1000PST up trend? Yes I agree it is up trend because of immediate rejection of break out below opening range low. But I see those as swings in TR, since I cannot hold through so large swings for so long at this time unless i am holding a winner like yesterday. I agree i should not exit the first long and the third long. So there should not be 2nd long and 4th long. Thank you.

There is no pullback in the second bar. You appear to be buying the BO itself.

0630 up acc to your time axis. And they are not swings in a trading range; they are higher highs and higher lows. If you can't hold through large swings, then trade trend and countertrend until the incursions lessen or cease. But they do not become a trading range just because you want to see one there.

If you have not read the AMT pdfs I posted last weekend, I suggest you do so, particularly the one on boxes/ranges.

 

[Huyang]

There is no pullback in the second bar. You appear to be buying the BO itself.

0630 up acc to your time axis. And they are not swings in a trading range; they are higher highs and higher lows. If you can't hold through large swings, then trade trend and countertrend until the incursions lessen or cease. But they do not become a trading range just because you want to see one there.

If you have not read the AMT pdfs I posted last weekend, I suggest you do so, particularly the one on boxes/ranges.

DB:

It is more accurately BO. I do sometimes buy BO instead of waiting for PB when i feel price may move very fast and even though there will be PB i feel most likely PB will be not reach my stop. Naturally i would sometimes enter early (why i allow one time adverse move) and sometimes price do move without PB.

I meant TR of 79 to 02, prob more accurately the possible box of 79 to 02 drawn in my head before a new high above 02. I have read your AMT pdfs but i will read them again.

Would you please explain using a chart " then trade trend and countertrend until the incursions lessen or cease". I am afraid i donot understand what you meant exactly. Thank you very much!

 

[dbphoenix]

DB:

It is more accurately BO. I do sometimes buy BO instead of waiting for PB when i feel price may move very fast and even though there will be PB i feel most likely PB will be not reach my stop. Naturally i would sometimes enter early (why i allow one time adverse move) and sometimes price do move without PB.

I meant TR of 79 to 02, prob more accurately the possible box of 79 to 02 drawn in my head before a new high above 02. I have read your AMT pdfs but i will read them again.

Would you please explain using a chart " then trade trend and countertrend until the incursions lessen or cease". I am afraid i donot understand what you meant exactly. Thank you very much!

It is more accurately BO. I do sometimes buy BO instead of waiting for PB when i feel price may move very fast and even though there will be PB i feel most likely PB will be not reach my stop.

Then you're not following your plan. If you need to modify your plan to include all this, you're free to do so. But if you don't modify it, you have to follow what you've written. Otherwise, there's no point in writing it.

I meant TR of 79 to 02, prob more accurately the possible box of 79 to 02 drawn in my head before a new high above 02.

There is no TR between 79 and 02. It's a series of higher highs and higher lows. If it were a trading range, price would be bouncing between 79 and 02 all the way from 0630 to 0800.

 

[dbphoenix]

As for explaining using a chart, what one does depends on whether or not he's learning how to see. If you're learning how to see, you must track every imbalance between supply and demand. And while this will look cluttered in hindsight, it will not in real time. Either way, it's a necessary step:

It should be clear within 45m that you are not getting a "stairstep" trend. But neither is this a trading range. Far from it.

Once you've learned to see and how to judge the imbalances in buying pressure and selling pressure in real time, you can dispense with all the lines and just follow those imbalances:

Here you make one entry off the pullback after the break of the first supply line. If price can't come back more than 50% and it can't breach the previous swing low, you stay in. One entry and one exit. If you're entering and exiting over and over again, then you're allowing your fear to determine your trade management, not your trading plan. The first chart is a means of getting over the fear. If you don't get over it, you're wasting your time.

 

[Huyang]

Then you're not following your plan. If you need to modify your plan to include all this, you're free to do so. But if you don't modify it, you have to follow what you've written. Otherwise, there's no point in writing it.

You are absolutely right. I will modify the plan.


There is no TR between 79 and 02. It's a series of higher highs and higher lows. If it were a trading range, price would be bouncing between 79 and 02 all the way from 0630 to 0800.

From 6:30 to 0800 PST, it is higher highs and higher lows. Sorry i forgot to say the time. I was talking about a possible box 79 to 02 around 9:30, my third long entry after failed break out down 79.

I guess you were talking about to just trade up swing 0630 to 0800 and down swing 0800 to 9:10 and then up swing 9:10 to close. i will read your post with charts soon.

Thank you very much.

 

[dbphoenix]

Sorry i forgot to say the time. I was talking about a possible box 79 to 02 around 9:30, my third long entry after failed break out down 79.

Price never reaches 02 again after 0807, so I have no idea what you're referring to. There are no boxes in this timeframe that are more than a few minutes duration, unless you have a very liberal definition of "box".

 

[Huyang]

Price never reaches 02 again after 0807, so I have no idea what you're referring to. There are no boxes in this timeframe that are more than a few minutes duration, unless you have a very liberal definition of "box".

DB:
My fault. Sorry. You were explaining PA from 0630 to 0800 but i was talking about a possible box from 0630 to after 9:30 or until close as in the chart. If it does not make sense to you, please ignore this box part. I think i understand what you meant.

I agree sometimes the fear of missing out let me enter early, sometimes the fear of loss let me exit early, sometimes the fear of missing the big profit when already in nice profit let me exit too late. I have modified the plan and following the plan and judging imbalances between demand and supply in real time will definitely help with fear issues. Thank you very much for the valuable explanation using charts, very informative. i have saved all those teaching in a file and will review it often.

 

[dbphoenix]

DB:
My fault. Sorry. You were explaining PA from 0630 to 0800 but i was talking about a possible box from 0630 to after 9:30 or until close as in the chart. If it does not make sense to you, please ignore this box part. I think i understand what you meant.

If you want to call that a box, there is no reason for you to trade a reversal at the top since at that time you have no idea what price is going to do. And the only reason for you to trade a reversal at the bottom is the test of 77.

Therefore, if you want to define this as a box in real time, you have one trade during the entire session: the bounce off 77 at 0850.

 

[Huyang]

If you want to call that a box, there is no reason for you to trade a reversal at the top since at that time you have no idea what price is going to do. And the only reason for you to trade a reversal at the bottom is the test of 77.

Therefore, if you want to define this as a box in real time, you have one trade during the entire session: the bounce off 77 at 0850.

DB: i agree with you but that is my next goal. I believe FortyD loves this 77 trade. At my current level, i prefer entering late to have less information risk although more price risk. If i just learn to trade, i would focus on trades like this 77 trade immediately, but i have many fears to overcome and things unlearn, i prefer step by step, that is, at this stage, around 3rd long entry 9:29 after higher swing low. Thank you very much for your teaching.

 

[Huyang]

DB: If possible, please help to comment short exit of1/27 in the chart on page 143 post #857. more than 50% PB of the down leg 0845 to 0915 PST but less than 50% PB of the whole down swing 0700 to 0915 PST. Sorry for taking you so long time. This is my last question and you donot have to respond tonight. Good Night!