Bride of If You Can Draw A Straight Line

[dbphoenix]

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?

You can use the 50% levels, but remember that they are there as a measure of strength or weakness, not as yes/no indicators. For example, if price rises and breaches the 50% level then falls back below, that's as much a failure as if it had never breached the level in the first place.

If you require a visual, imagine pushing a car up an incline. Your first effort may get you quite some distance, but each subsequent push is going to cover less ground until you reach the crest and the car starts moving down the other side on its own momentum. Simple-minded, perhaps, but more accurate than one might expect.

 

[dbphoenix]

With regard to this post I made in the Ghost thread yesterday, given the magnitude of the trend channel and the price moves and that the thickness of the trendlines themselves can be worth more than a few points, coming within 19pts of the "target" may have to be enough.

Again the chart I posted yesterday. We appear to be on our way to the 3450 area (anywhere from there to 3435), though not necessarily today.

Two consecutive days of freefall in the same direction is unusual, but not unprecedented.

The end result of all this, then, amounted to 50pts on the short and 35pts on the long. Since trolls can't read, much less draw straight lines, they will likely snicker and guffaw at this and blow their chocolate milk out their noses. However, those who can draw straight lines and are unsure about the exact entries and exits themselves are welcome to give it a shot and post their charts. Without candles and without MAs, of course.

 

[Huyang]

However, those who are unsure about the exact entries and exits themselves are welcome to give it a shot and post their charts.

DB: If possible, please help to comment entries and exits in the chart. Thanks a lot.
Traders: please help to give constructive comments too. Thank you very much.

 

[dbphoenix]

DB: If possible, please help to comment entries and exits in the chart. Thanks a lot.

What is your trading plan?

 

[Huyang]

What is your trading plan?

DB: The setup is BOPB. The trading plan for BOPB Long:
1. Entry: BOPB

2. Stops
o Initial stop: 1t below swing low.
o Trailing stops: could allow 1 adverse move (PB). After PB, move stop to 1t below PB low if initial stop around 2ps away from PB low.

3. Exit by one of the following:
o Using profit target of 5ps or 10ps or more.
o Exit at resistance or DL break
o Being stopped out.
o Manual exit before 2nd adverse move.

Thank you very much!

 

[dbphoenix]

DB: The setup is BOPB. The trading plan for BOPB Long:
1. Entry: BOPB

2. Stops
o Initial stop: 1t below swing low.
o Trailing stops: could allow 1 adverse move (PB). After PB, move stop to 1t below PB low if initial stop around 2ps away from PB low.

3. Exit by one of the following:
o Using profit target of 5ps or 10ps or more.
o Exit at resistance or DL break
o Being stopped out.
o Manual exit before 2nd adverse move.

Thank you very much!

Trading pullbacks after breakouts is fine, but price has to be breaking out of something. You have to define what that something is. I don't see a range here. I see an uptrend from 0630 to 1000. If you had been trading that instead and had been able to tolerate the deep incursions of each swing to the swing previous, you would have had one entry and one exit.

 

[Huyang]

DB:

I am also not sure about my short exit of yesterday as shown in the chart. I think i did follow my plan although i let a 27ps winner becoming a 1t trade, therefore i didnot feel much regret which i would definitely feel before. My goal is to trade consistently and follow rules but not on profit. Thank you very much.

 

[Huyang]

Trading pullbacks after breakouts is fine, but price has to be breaking out of something. You have to define what that something is. I don't see a range here. I see an uptrend from 0630 to 1000. If you had been trading that instead and had been able to tolerate the deep incursions of each swing to the swing previous, you would have had one entry and one exit.

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.

 

[niko]

DB:

I am also not sure about my short exit of yesterday as shown in the chart. I think i did follow my plan although i let a 27ps winner becoming a 1t trade, therefore i didnot feel much regret which i would definitely feel before. My goal is to trade consistently and follow rules but not on profit. Thank you very much.

Huyang,

Have you tried the Straight Line Approach.?

I think you should start with that and grow your plan from there, it will help you a lot.

 

[Huyang]

Huyang,

Have you tried the Straight Line Approach.?

I think you should start with that and grow your plan from there, it will help you a lot.

Niko:

I use ideas from straight line approach. Thank you.