If you look at the OP's initial situation you see he has a lot of "IF's" and "BUT'S".
This is normal progression as a trader goes from just observing to thinking about putting money into trading.
It can be a very cautious time and he is told this repeatedly by his emotions. Collectively. they are warnings whose subject is his survival.
All the certain answes are always available to a trader. BUT, as we see, the learning traders does not ask the questions and, at anytime, like in this thread, the questioner is only bringing up 2 out of 3 contexts.
So I refrain from filling in the picture to include all of the possibilities. I wait to do this since no one, including me, wants to cloud the picture in any way.
What does it look like to start where the OP is and be at the point where a trade is about to be considered? That is why I put up a sequence of illustrations so the OP and others can see how they got to the thread's beginning and all the doubt present
At the Present the OP is at one of two places. One is correct; the other is wrong.
Imagine if the OP could log the train of events and always know where he is in a trend. There is a potential that this can occur for him just as it is evident to me as a reality of trafing to make all of the market's offer.
In this Present, there is an absolute certainty whether we are at point 2 of a trend or whether we are at point 3 In either case we started at a peak volume on a given numbered point of a parallelogram.
In both cases we headed to a volume trough. In one case we went past the trough to a peak (the reversal) and in the other case we stopped at the trough (the retrace).
Volume is the differentiator DURING a profit segment.
Taking on a trade at the end of a price move is a nice concept. Knowing the END of a retrace and a reversal has also just been pointed out.
So we have covered the beginning of a retrace and an end of a retrace and just how volume behaves in a retrace throughout the retrace.
We did the same for a reversal. Six items have been explained.
What is the tooling needed for monitoring and analyzing these things? The OP has none of these tools. Questions or emotional signals say but one thing. In Behavioral Finance, path 2 is explained.
The Op has to journal two topical items: emotions and solutions. His emotions cuae the journal to be openedand he writes down the emotion. Then he formulates the Behavioral Finance task: to make a reasonable change in his trading approach.
The takss come down to quite a few things for any serious poster here and for any serios reader here.
Each has to decide to begin to do work in the form of reasonable changes in your trading approach. you have to decide to take EVERY IF and BUT off the table as your emotions are dictating to you so to do.
One case (retrace) starts on a LTL; your task is to put in LTL's; they come from RTL's so you have to do the task of putting in RTL's.
The other case (reversal starts on an FTT so you have to task anotating FTT's which are between RTL's and LTL's which you have to task doing each.
Both trades begin with a non dominant price move , you have to first learn to take dominant profit segments and then learn to take non dominant profit segments (or HOLD through them) after that. Before all of thsi you need to have PRV (Pro Rata Volume on your charts and market PACE on your charts to see whether PACE change or dominance change or non-dominance change is more significant. These three items are leading indicators of price. First they have to be added to displays and then you have to learn how to "read" them using built long term memory to match what you see.
To keep track of what is going on you have to annotate and log what you annotate. To log you have to design a log that gives you the pre and post events for all events in order that you know and event is arriving on your log. To log into the cells of the log you have to build a vocabulary for each column of the log. You also have to have a bar clock on your screen to note the second when that row of the log was tabulated.
So its a New Year and like a carpenter with 20 years on the job, you will repeat your first year on the job for the 21st time this year OR will you move forward?
What I imagine is that the OP sits and looks at charts and gets more and more puzzled. My posts are called work. Work is the expenditure of energy some of which involves things happening in the mind. All to put before you what you are getting here and now. I am working at a pace that is slowed by the ET platform.
To look more closely, we need to add bars and then add the formatiion of each bar for both volume (leading) price.
Taking a good long look at how the mind works and how learning occurs through repetition is also a good idea.
This is normal progression as a trader goes from just observing to thinking about putting money into trading.
It can be a very cautious time and he is told this repeatedly by his emotions. Collectively. they are warnings whose subject is his survival.
All the certain answes are always available to a trader. BUT, as we see, the learning traders does not ask the questions and, at anytime, like in this thread, the questioner is only bringing up 2 out of 3 contexts.
So I refrain from filling in the picture to include all of the possibilities. I wait to do this since no one, including me, wants to cloud the picture in any way.
What does it look like to start where the OP is and be at the point where a trade is about to be considered? That is why I put up a sequence of illustrations so the OP and others can see how they got to the thread's beginning and all the doubt present
At the Present the OP is at one of two places. One is correct; the other is wrong.
Imagine if the OP could log the train of events and always know where he is in a trend. There is a potential that this can occur for him just as it is evident to me as a reality of trafing to make all of the market's offer.
In this Present, there is an absolute certainty whether we are at point 2 of a trend or whether we are at point 3 In either case we started at a peak volume on a given numbered point of a parallelogram.
In both cases we headed to a volume trough. In one case we went past the trough to a peak (the reversal) and in the other case we stopped at the trough (the retrace).
Volume is the differentiator DURING a profit segment.
Taking on a trade at the end of a price move is a nice concept. Knowing the END of a retrace and a reversal has also just been pointed out.
So we have covered the beginning of a retrace and an end of a retrace and just how volume behaves in a retrace throughout the retrace.
We did the same for a reversal. Six items have been explained.
What is the tooling needed for monitoring and analyzing these things? The OP has none of these tools. Questions or emotional signals say but one thing. In Behavioral Finance, path 2 is explained.
The Op has to journal two topical items: emotions and solutions. His emotions cuae the journal to be openedand he writes down the emotion. Then he formulates the Behavioral Finance task: to make a reasonable change in his trading approach.
The takss come down to quite a few things for any serious poster here and for any serios reader here.
Each has to decide to begin to do work in the form of reasonable changes in your trading approach. you have to decide to take EVERY IF and BUT off the table as your emotions are dictating to you so to do.
One case (retrace) starts on a LTL; your task is to put in LTL's; they come from RTL's so you have to do the task of putting in RTL's.
The other case (reversal starts on an FTT so you have to task anotating FTT's which are between RTL's and LTL's which you have to task doing each.
Both trades begin with a non dominant price move , you have to first learn to take dominant profit segments and then learn to take non dominant profit segments (or HOLD through them) after that. Before all of thsi you need to have PRV (Pro Rata Volume on your charts and market PACE on your charts to see whether PACE change or dominance change or non-dominance change is more significant. These three items are leading indicators of price. First they have to be added to displays and then you have to learn how to "read" them using built long term memory to match what you see.
To keep track of what is going on you have to annotate and log what you annotate. To log you have to design a log that gives you the pre and post events for all events in order that you know and event is arriving on your log. To log into the cells of the log you have to build a vocabulary for each column of the log. You also have to have a bar clock on your screen to note the second when that row of the log was tabulated.
So its a New Year and like a carpenter with 20 years on the job, you will repeat your first year on the job for the 21st time this year OR will you move forward?
What I imagine is that the OP sits and looks at charts and gets more and more puzzled. My posts are called work. Work is the expenditure of energy some of which involves things happening in the mind. All to put before you what you are getting here and now. I am working at a pace that is slowed by the ET platform.
To look more closely, we need to add bars and then add the formatiion of each bar for both volume (leading) price.
Taking a good long look at how the mind works and how learning occurs through repetition is also a good idea.