Bride of If You Can Draw A Straight Line

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Quote from dbphoenix:

And before I leave this, there is also the option which I generally take of avoiding trades which are bound by swing points, i.e., unless price can make a new swing high or new swing low, it is by definition ranging, and whatever trades one might take will not only be for small profits (and perhaps small losses) but will be more likely to enrich the broker rather than me. Granted it will annoy the trader to give up those extra points which in hindsight he would have realized if he had entered the trade at exactly the turning point which began the new trend, but this is something he will just have to get over. If one examines a large enough sample of chop, he will note that while the breakouts of some will fail and frustrate those who are eager to move on, the breakouts of others will be such a relief that they will lead to substantial trending moves that will more than make up for whatever points may have been unrealized by failing to get in at the very beginning, points which would more likely have been consumed anyway by all the chop trades that would have been taken in the meantime, resulting in the small losses that can be so dispiriting.
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Thank you for this great advice. Although it seems so obvious now that trading within the chop is a bad idea, I guess is the inability to "do nothing" accompanied by the hope that the "new" range bottom will be the last and the fear that the BO will have no close enough RET, that draw traders into trying to trade within the chop.
 
Quote from niko:

Thank you for this great advice. Although it seems so obvious now that trading within the chop is a bad idea, I guess is the inability to "do nothing" accompanied by the hope that the "new" range bottom will be the last and the fear that the BO will have no close enough RET, that draw traders into trying to trade within the chop.
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It must be remembered, however, that chop can become a trading range. If so, the upper and lower limits of the range can be traded via reversals (which are not among the subjects of this thread). Thus one can be already in a trade when the breakout occurs. This always puts a nice shine on the day.
 
Quote from dbphoenix:

It must be remembered, however, that chop can become a trading range. If so, the upper and lower limits of the range can be traded via reversals (which are not among the subjects of this thread). Thus one can be already in a trade when the breakout occurs. This always puts a nice shine on the day.
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Hehehe, but that is for the senior class.
 
I just wrote down some facts in terms of the method which should lead to a positive attitude and outcome over time if the basics are applied correctly.

Maybe there are a few more - and maybe some of them go beyond the lines stuff, but I decided to post them here - for whoever they might be from use...

- the possibility to analyse the behaviour of buyers and sellers in real time using the lines

- cleary defined entries

- stop limit orders a little away from price to avoid getting caught on the wrong side

- winners which could be way bigger than the potential losses

- the rule to stop trading after a certain amount of losers in a row (two or three)

- the global context

- an overall positive expectancy in terms of winners and losers and wins and losses
 
9:31 Fast move, no entries so far, SL traced.
9:34 SL broken
9:37 Faster that I have expected, DL traced but no "actionable" RET so far.
9:40 Long at 98 DL fanned
 
Quote from niko:

9:31 Fast move, no entries so far, SL traced.
9:34 SL broken
9:37 Faster that I have expected, DL traced but no "actionable" RET so far.
9:40 Long at 98 DL fanned
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9:41 Short lived long, DL broken
9:47 Short at 93
9:50 Chop
9:59 still in the chop
 
Quote from niko:

9:41 Short lived long, DL broken
9:47 Short at 93
9:50 Chop
9:59 still in the chop
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This is exactly what I was referring to in my last comment.
 
Quote from dbphoenix:

This is exactly what I was referring to in my last comment.
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Is this a tradable TR? The only entry I can come up with (out of my hat really) is a short at 96 at 10:01.
 
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