Bride of If You Can Draw A Straight Line

[niko]

9:31 Avoided the short as it would have meant to get back in the chop. Waiting for the chop to clear out.
9:34 SL gone
9:37 New DL
9:42 Long at 54 DL fanned.

 

[timokrates]

Quote from niko:

If you look at the chart from the 8:43 perspective, you really had a RET after a parabolic fall, there was no chop just yet, but it did look suspicious.

This parabolic fall stuff - or lets say a very steep demand line in that case, to stick to the scope of the thread - is something which I try to get used to in terms of staying out of the chop.

As DB stated before, there is a lot of potential for retests which could lead to overlapping swings aka chop before the final retracement and the reversal takes place.

The other side is to miss the trade...

 

[niko]

Quote from niko:

9:31 Avoided the short as it would have meant to get back in the chop. Waiting for the chop to clear out.
9:34 SL gone
9:37 New DL
9:42 Long at 54 DL fanned.

9:46 DL intact, long holds.

 

[Gringo]

I thought 9:33 was a SL break and then a Ret the next minute. The retracement and the subsequent rise were together in the same bar hence might have been a bit difficult to see.

When I was looking at price the fact that price was having serious problems going down was an indication to stay ready for any signs of up move. The clearest retracement did come around when Niko got in but there was a bit of meat to be had before that later retracement in my opinion.

Gringo

 

[niko]

Quote from niko:

9:46 DL intact, long holds.

9:51 DL poked

 

[dbphoenix]

Quote from timokrates:

0914: RET Entry leaving the chop?

There's no retracement until 0924. Long not triggered.

 

[niko]

Quote from Gringo:

I thought 9:33 was a SL break and then a Ret the next minute. The retracement and the subsequent rise were together in the same bar hence might have been a bit difficult to see.

When I was looking at price the fact that price was having serious problems going down was an indication to stay ready for any signs of up move. The clearest retracement did come around when Niko got in but there was a bit of meat to be had before that later retracement in my opinion.

Gringo

Agree, but my thinking at the time was that we were still within the chop area 44-46 So I was waiting for a clear sign of BO.

 

[Hooti]

Quote from niko:

9:51 DL poked

at 3360 ...again

 

[niko]

Quote from niko:

9:51 DL poked

9:55 DL broken, no RET for short just yet.

 

[dbphoenix]

Quote from Gringo:

I thought 9:33 was a SL break and then a Ret the next minute. The retracement and the subsequent rise were together in the same bar hence might have been a bit difficult to see.

When I was looking at price the fact that price was having serious problems going down was an indication to stay ready for any signs of up move. The clearest retracement did come around when Niko got in but there was a bit of meat to be had before that later retracement in my opinion.

Gringo

I don't know that it would be considered a supply line break. More likely a test of the pre-open range. But a decision to take or not the retracement at 0931 would absolutely have to be done based on trader behavior and not bars. A more reasonable entry for someone not completely versed in this would be the 0941 bar.