ES Journal Archive (2011)

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Quote from Lawrence Chan:

Am talking about the break back into RTH high - lower risk and easier to manage.

As you know I do not pick top or bottom in general - higher prob but lower net comparing to picking extremes .

=)
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Isn't "top" and/or "bottom" an "extreme", by definition?.:confused:
 
Quote from Lawrence Chan:

Read my post again.

The 1st sentence already tell you exactly what it means.
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okidoki. So, you mean that instead of fading the pushup (trying to pick a top), you wait till the market leaves a tail or rejects or enters back into the bracket (leaving an extreme behind). Right?.

That clears up the difference between picking a "top" or waiting to see the "extreme". Even I can understand it now. Thanks!.:p

The "extreme" and the "top" are the same thing pattern wise and the difference is technically the entry mechanism. Correct?.
 
Quote from eudaemon:

okidoki. So, you mean that instead of fading the pushup (trying to pick a top), you wait till the market leaves a tail or rejects or enters back into the bracket (leaving an extreme behind). Right?.

That clears up the difference between picking a "top" or waiting to see the "extreme". Even I can understand it now. Thanks!.:p

The "extreme" and the "top" are the same thing pattern wise and the difference is technically the entry mechanism. Correct?.
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1. entry on breaks (double top, 1-2-3, etc.) gives higher prob and well defined risk from the established extreme

2. "top/bot picking" in general looks for way larger return comparing to "picking extremes"

e.g. NiN picks local extremes pretty well
 
Thanks LC. I got it now I think.:eek:

A top or bottom is a larger feature than an extreme, as extreme could happen in any faster timeframe?.:confused:
 
Quote from eudaemon:

Thanks LC. I got it now I think.:eek:

A top or bottom is a larger feature than an extreme, as extreme could happen in any faster timeframe?.:confused:
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a top / bot in a time frame marks the high / low.

e.g. day high, month high, etc.

a local extreme is just that - price action within a very short period of time
 
Quote from Lawrence Chan:

a top / bot in a time frame marks the high / low.

e.g. day high, month high, etc.

a local extreme is just that - price action within a very short period of time
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Got it. Thanks. Therefore an extreme can become a top after a while, like yesterday's case. Very clear. Cheers.
 
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