ES Journal Archive (2011)
- Thread starter Buy1Sell2
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From Art of War:
"All warfare is based on deception."
19. Hence, when able to attack, we must seem unable; when using our forces, we must seem inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make the enemy believe we are near.
20. Hold out baits, to entice the enemy. Feign disorder, and crush him.
So how does the ES hold out baits to trap shorts? It will make a LL to stop out weak longs, and trap shorts, and then will rise.
"All warfare is based on deception."
19. Hence, when able to attack, we must seem unable; when using our forces, we must seem inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make the enemy believe we are near.
20. Hold out baits, to entice the enemy. Feign disorder, and crush him.
So how does the ES hold out baits to trap shorts? It will make a LL to stop out weak longs, and trap shorts, and then will rise.
From Art of War:
1. Sun Tzu said, The good fighters from old first put themselves beyond the possibility of defeat, then waited for an opportunity of defeating the enemy.
I like to think of this in a few ways.
a) Putting oneself beyond the possibility of defeat means having some type of stop. It could be an emergency stop, a mental stop, a timed based stop. Also, it could mean having a loss limit for the day. Therefore even if you lose a battle or more, you are not defeated.
b) The other way, I take this to mean waiting for your setup in which you have a high probability of victory.
Sun Tzu said, he who wins his battles makes no mistakes. I believe this to mean that when you are trading, you make sure that before and when you take the trade, that it is based on your edge and not on other factors.
1. Sun Tzu said, The good fighters from old first put themselves beyond the possibility of defeat, then waited for an opportunity of defeating the enemy.
I like to think of this in a few ways.
a) Putting oneself beyond the possibility of defeat means having some type of stop. It could be an emergency stop, a mental stop, a timed based stop. Also, it could mean having a loss limit for the day. Therefore even if you lose a battle or more, you are not defeated.
b) The other way, I take this to mean waiting for your setup in which you have a high probability of victory.
Sun Tzu said, he who wins his battles makes no mistakes. I believe this to mean that when you are trading, you make sure that before and when you take the trade, that it is based on your edge and not on other factors.
Wide resistance range here 33-38.
A turn from this zone implies 18 and below quickly.
Not necessary a major top though.
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