ES Journal | Divergence918

Iwilldoit said:
I bought this book,

how about Bulkowskis chart patterns website? http://thepatternsite.com/chartpatterns.html

@Handle123
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He is my second choice.

Iwilldoit said:
@Handle123

Quite confusing.

So what is the purpose for calculating these swings? to determine targets? or trend direction?
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So it not long and drawn out, knowing what the Swing length helps you to gauge "Time Stops" for one, when to give trade less time to showing if it is going to work out and save money from becoming losing trades. Mini swings allows a new staring point to develop a new trend or continuation of same trend, very very often trend will end at end of Swing length give excellent reversals or at very least exits from a trend trade. Swing length will also show what might be expected and pass on trades based on getting near end of swings. Some of my signals can't be placed until end of average and some signals won't happen or time stops change to 1-2 bars. I use them to be more conservative and one of many ways to keep my losing percentages down very low. I use this in all markets I day trade and that are programmed.

I don't think many traders use them, but I have developed many weird rules in my 30 years of day trading.

I think as you study price much more, you will understand better.
 
Here is charting you don't see much in books, looking for where price most likely will reverse. Knowing what "Swing ten day ave is which right now is 8pt, then I use one point minus and two points beyond as to give me a Zone", so I am expecting market to possibly reverse between 7-10pts on normal none trend day. So when you have High Of Day, HOD, and price breaks between 1-3 ticks, you can expect mini mini pull back, not enough to get more than 1-2 ticks, risk too high for this, so then I am waiting for another break of HOD which on almost any indicator will show clearly double 2 divergences, so today price breaks by one tick, noticing the volume greatly reduced from 9:14 bar shows us lack of interest to go higher. For a scalper like myself, I already know it is going to go down 4-8 ticks before pull back to fail making new highs and this failure is the money trade on Mon to Thursday for 3 plus points but Fridays much less so and getting a point is pretty good.
 

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@Handle123

I'm reading those books you recommended.

Other than the main chart patterns such as H&S, Ascending triangles, Double Tops, Flags......support and resistance (which I understand)

what else is worthwhile understand about "price action"?
 
That is one of many areas to study, but also just different ways to view support/resistance and volume. Volume shows "Interest", more volume and price move in one direction or the other, lack of "interest" market then to slide counter to the trend it is. Something huge volume and instrument didn't move much, so these are areas you want to read and study.
 
I think it's better to find a non lagging indicator and then change the parameters of the indicator to match what price is doing on a chart. Then you need to see if the indicator that you change continues to work with next chart that appears during the next day in the week plus previous days in the week. Obviously, it will not be perfect and there are days the indicator will not work and you should rely on different indicators when one is not working.

Finally, you want to remove all indicators that show the same thing on the chart to avoid clutter. Also, determine what your best indicators are and mainly use them above all else. And don't make the mistake I made today by not drawing S and R lines incorrectly. For example, a support line should never be right where the current price is trading but the last previous candle stick wick bottom where price previously could not break under. That means even if price is currently not going under the last few candle bottoms, it is still not a true support level.
 
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