Day trade - books indications - price action

[Luiztosi]

the idea is to buy the short term down move because you have the support of the larger term players.
only the short term ma [ trend ] is down so a sell is only a scalp

the ma in a down trend represent the short term move of the
market

BLSHS?

I’m not fan of this kind of move ... I rather do less trades but taking longer moviments

But good tips

 

[volpri]

Appreciate your endorsement.

"Concerning number 3. You are exactly correct. It is counter intuitive. Most traders want to go long in such a scenario. But what is happening is the bulls are losing. They are pushing back (hence bull bars) but the move continues down. Conclusion: bulls are wanting a reversal or a continuation of a previous bull trend but the bears are winning despite the bulls pushing back."

nice explanation: i suspect most traders see the slow fall as a correction.

"The context must support the conclusion. So, providing the larger context does so these can be three winning tactics and a viable manner of trading."
do you not think three longer term ma in uptrends, show the context in a nutshell?

I figured this question would be forthcoming. The three ma’s CERTAINLY show a part of the context. However, you have to also look at the context in terms of price action patterns i.e channels..wedges..nested wedges (one wedge inside of the other) ..ranges (top or bottom) ..tight channels...broad channels...ranges within ranges...price near prior resistance support areas....BO’s within channels and ranges and out of channels and ranges...gaps (a la mode Brooks) the present market cycle (a la mode Brooks) in which price is meandering around in. It sounds like alot but once the concepts and their nuances are memorized typically a few glances at a chart gives the info needed.

This is why Brooks trades off 5 minute charts as opposed to 3 minutes or 1 minute charts. It does take some time to observe such info and process it to make a decision if the odds favor taking x position. Usually 5 minutes is enough.

I scalp ALOT. Therefore I watch 5minute chart and and a 1 minute chart and I correlate those charts. For scalping I find I can often get a jump on 5 minute pa that is forthcoming by closely watching a 1 min chart. Said another way; the one minute chart shows me the dynamics as a 5 min chart is forming as opposed to just watching a static hindsight 5 minute chart that has formed a pattern. So I am by looking at a 1 min chart basically attempting to anticipate a pattern on a 5 min chart. Said another way: I want to see the patterns..context..etc on a 5 minute chart but I ALSO want to see “how” that formation took place ( i.e. the dynamics).

I also take occasional glances at a 15 min just to see the larger context (on it’s own)..bars...pa patterns..gaps..market cycle ...etc. as opposed to say just watching another moving average.

 

[padutrader]

I figured this question would be forthcoming. The three ma’s CERTAINLY show a part of the context. However, you have to also look at the context in terms of price action patterns i.e channels..wedges..nested wedges (one wedge inside of the other) ..ranges (top or bottom) ..tight channels...broad channels...ranges within ranges...price near prior resistance support areas....BO’s within channels and ranges and out of channels and ranges...gaps (a la mode Brooks) the present market cycle (a la mode Brooks) in which price is meandering around in. It sounds like alot but once the concepts and their nuances are memorized typically a few glances at a chart gives the info needed.

This is why Brooks trades off 5 minute charts as opposed to 3 minutes or 1 minute charts. It does take some time to observe such info and process it to make a decision if the odds favor taking x position. Usually 5 minutes is enough.

I scalp ALOT. Therefore I watch 5minute chart and and a 1 minute chart and I correlate those charts. For scalping I find I can often get a jump on 5 minute pa that is forthcoming by closely watching a 1 min chart. Said another way; the one minute chart shows me the dynamics as a 5 min chart is forming as opposed to just watching a static hindsight 5 minute chart that has formed a pattern. So I am by looking at a 1 min chart basically attempting to anticipate a pattern on a 5 min chart. Said another way: I want to see the patterns..context..etc on a 5 minute chart but I ALSO want to see “how” that formation took place ( i.e. the dynamics).

I also take occasional glances at a 15 min just to see the larger context (on it’s own)..bars...pa patterns..gaps..market cycle ...etc. as opposed to say just watching another moving average.

thanks for your insights....what you say makes sense

 

[volpri]

thanks for your insights....what you say makes sense

Is the dynamic tic toc..toc tic..tic toc. Or is it tickety toc...tickety toc or is it tickety toc toc tickety toc toc OR is it swoosh ......on those 1 min bar..with gaps ..etc..are the bars ovelapping? Bear then bull then bear then bull. Are the bar tight or large? Are they bull..bull..bull or bear bear bear? Where are they located in the market cycle on the 1 min time frame? What patterns are they forming on the 1 min TF?

 

[padutrader]

Is the dynamic tic toc..toc tic..tic toc. Or is it tickety toc...tickety toc or is it tickety toc toc tickety toc toc OR is it swoosh ......on those 1 min bar..with gaps ..etc..are the bars ovelapping? Bear then bull then bear then bull. Are the bar tight or large? Are they bull..bull..bull or bear bear bear? Where are they located in the market cycle on the 1 min time frame? What patterns are they forming on the 1 min TF?

too many questions and decisions to make
i think i need a drink

 

[volpri]

LOL

too many questions and decisions to make
i think i need a drink

 

[Mnewton]

Trading in the Zone: Master the Market with Confidence, Discipline, and a Winning Attitude – Jan 1 2001
by Mark Douglas
A good place to start especially read the last chapter twice.

 

[comagnum]

My favorite day trading book is the one our very own traderGOD is sure to write one day. His book may include conversations with himself, how to make your chart look like a X-mas on LSD. It won't cover why you have to make 500% just to break even day trading $25.