excellent work.
Did you calculate 40 by looking at the support level from January 9th-10th?
Bride of If You Can Draw A Straight Line
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excellent work.
Did you calculate 40 by looking at the support level from January 9th-10th?
Actually AMT. But if the trolls snicker at supply and demand, they'd absolutely bust a gut at auction market theory.
A couple of ticks from 30 . . .
Ended at 28, BTW.
Nice call db
The following is a duplicate of a post I just made to the Ghost thread. Since this process applies to any bar interval, I'm posting it again here so that those who aren't interested in the Ghost thread will run across it anyway. If this seems like clutter, my apologies:
I've mentioned scaling out several times, but I seem not to have posted the chart, or the post that originally went with it (this is all years old). So, here it is:
Scaling Out
There need to be criteria for exits. But the nearly universal problem that beginning traders have with regard to exits is a desire to trade all in then all out. Add to that the fact that they are nearly always trading with one contract or one lot, and you have a doomed setup.
The solution to exits is a simple one: trade as if you were trading five contracts or five lots and abandon the idea of being able to exit with all of them at the exact top or bottom. The goal is to make money, not to prove to oneself what a superior trader one is.
Then determine in advance where each of those contracts will be sold. For example, if one is trading supply and demand, sell the first contract, in an uptrend, at the break of the demand line. If there is a subsequent continuation, sell the second contract at a lower high or the break of the next demand line, whichever comes first. If there is an even further continuation, sell the third in the same manner as the second. The fourth might be sold at a breach of the last swing low. Leave the fifth, for example, at breakeven, or, if price has not yet reached the breakeven point but has fallen more than 50% of the rally, exit there. Or, if neither of these criteria have been met, exit just before the close. The particular details are not as important as planning them out ahead of time.
Then sell the first contract at whatever point you predetermined and paper trade the other four. Do this for several weeks. When it becomes second nature, carry the second contract for real. Sell the first and second contracts at your predetermined points. Paper trade the remaining three.
And so on.
Simple.
No wringing of the hands, no thumb-twiddling, no head banging.
For example:
I've mentioned scaling out several times, but I seem not to have posted the chart, or the post that originally went with it (this is all years old). So, here it is:
Scaling Out
There need to be criteria for exits. But the nearly universal problem that beginning traders have with regard to exits is a desire to trade all in then all out. Add to that the fact that they are nearly always trading with one contract or one lot, and you have a doomed setup.
The solution to exits is a simple one: trade as if you were trading five contracts or five lots and abandon the idea of being able to exit with all of them at the exact top or bottom. The goal is to make money, not to prove to oneself what a superior trader one is.
Then determine in advance where each of those contracts will be sold. For example, if one is trading supply and demand, sell the first contract, in an uptrend, at the break of the demand line. If there is a subsequent continuation, sell the second contract at a lower high or the break of the next demand line, whichever comes first. If there is an even further continuation, sell the third in the same manner as the second. The fourth might be sold at a breach of the last swing low. Leave the fifth, for example, at breakeven, or, if price has not yet reached the breakeven point but has fallen more than 50% of the rally, exit there. Or, if neither of these criteria have been met, exit just before the close. The particular details are not as important as planning them out ahead of time.
Then sell the first contract at whatever point you predetermined and paper trade the other four. Do this for several weeks. When it becomes second nature, carry the second contract for real. Sell the first and second contracts at your predetermined points. Paper trade the remaining three.
And so on.
Simple.
No wringing of the hands, no thumb-twiddling, no head banging.
For example:
Db,
In the chat you posted " Remember that the 50s are just signs of strength or weakness. What is more important is the strength or weakness itself."
In order to define strength and weakness without using the 50%s should I then first focus on the waves and the exhaustion of the movements? The tipping point concept you mentioned today?
In the chat you posted " Remember that the 50s are just signs of strength or weakness. What is more important is the strength or weakness itself."
In order to define strength and weakness without using the 50%s should I then first focus on the waves and the exhaustion of the movements? The tipping point concept you mentioned today?
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