ES Journal Archive (2006 - 2008)

[smilingsynic]

Quote from Sponger:

Thanks for sharing

Think about it in this way: where are the stops?

When you see the stops going off, you want to be ready to take advantage, and have your own stop in place in case you are wrong.

 

[mbusch]

Quote from mbusch:

Adherants talk about "jumping across the river" when resistance is penetrated to the upside after a false breakout to the downside, and "falling through the ice" when support is penetrated to the downside after a false breakout to the upside.

The terminology seems quaint, but the mental picture is this:

If you want to jump across a river (or creek), you need to back away from the riverbank and then run toward it to get up enough speed to make the jump.

Similarly, if you want to break through the ice, you need to jump up high enough so that you land with adequate force to break through.

The idea is that price action at bottoms and tops has a slingshot-like quality...you have to pull the slingshot back in order to propel the projectile forward with enough force to reach the target.

 

[smilingsynic]

Quote from mbusch:


The idea is that price action at bottoms and tops has a slingshot-like quality...you have to pull the slingshot back in order to propel the projectile forward with enough force to reach the target.

The speed and magnitude of the move off of the prospective bottom or top is critical. If there is no bounce, then the support will probably not hold.

 

[apex82]

short euro at 1.4782 10 pip stop

target 100 pips

 

[fka]

Long ES 67.25

stp 65
target 72


channel breakout


edit

remove target+stop 68

 

[Sponger]

Quote from mbusch:

The terminology seems quaint, but the mental picture is this:

If you want to jump across a river (or creek), you need to back away from the riverbank and then run toward it to get up enough speed to make the jump.

Similarly, if you want to break through the ice, you need to jump up high enough so that you land with adequate force to break through.

The idea is that price action at bottoms and tops has a slingshot-like quality...you have to pull the slingshot back in order to propel the projectile forward with enough force to reach the target.

Does this strictly apply to a range bound market....stops get triggered through a price spike, right before reversing through to the other side of the range....thereby reinforcing the range? Or is it fractal across the board, for tops and bottoms in general?

 

[Wittgenstein]

Quote from Sponger:

Thanks for sharing

Yes, thank you.

 

[apex82]

Quote from mbusch:

The terminology seems quaint, but the mental picture is this:

If you want to jump across a river (or creek), you need to back away from the riverbank and then run toward it to get up enough speed to make the jump.

Similarly, if you want to break through the ice, you need to jump up high enough so that you land with adequate force to break through.

The idea is that price action at bottoms and tops has a slingshot-like quality...you have to pull the slingshot back in order to propel the projectile forward with enough force to reach the target.

I like it nice visual

 

[BoyBrutus]

Quote from apex82:

I like it nice visual

 

[Sponger]

Quote from BoyBrutus:

Thank you, that just answered my last question