1. Traders with a plan.
2. The plan must include market sentiment.
3. Market sentiment must be known all the time.
4. A routine must be followed all the time to determine market sentiment.
5. The routine must include the means to know when market sentiment is changing on three fractals: the traded fractal, the fractal faster than the traded fractal; and the fractal slower than the traded fractal.*
6. Sentiment can only change after point 3 of a trending fractal.
7. Sentiment is changing on any fractal when continuation is coming to an end and fractal trend overlap is beginning (Change replaces continuation at the beginning of overlap).
8. Continuation comes to an end when additional volume cannot drive price further in the trend direction.
9 Overlap begins when point 1 of the next trend is observed as non dominant volume (in terms of prior trend, appears).
10. At this time the wall on the DOM is not breached and price reverses off the wall.
At these closely linked points in time, profit segments are taken and the new profit segment position is established. The market tool for this is the reversal trade.
*there are many leading indicators of the critical window in time for reversing. P and V ar the direct indicators of sentiment change where sentiment defines the correct side of the market. Immature markets do not provide real time P and V.
Seven leading indicators of trades are worth considering:
1. cases of volume
2. Smart money.
3. First derivatives and second derivatives
4. Cases of price.
5. Cases of two line indicators
6. All suppression indicators
7. The order of events in items 1 through 6 above.
The primary job of designing a trading plan is to have all data sets in a form of "go/no go" rather than as quan or qual relative measures. The reason is simple. The differentiated mind works est when no calibration is involved. One simple step in that direction is to not allow scaling on any display to vary from a set default. A second step is to always have the foring data the same place (and not on the right edge) on the display.
The envelope of all considerations HAS to extend into the future and price, then fills the envelopes as the future moves into the present from right to left.
Go nogo can be done in either of two instantly observable manners: boundaries and/or lites.
So the questions is, why can't gifropan determine how to use opposites to determine how to convert ANY trade that opposes sentiment of the market to a trade that is on the correct side of the market?
The above comment is made by a person who does not use stops but, instead, uses a plan to continually extrct the offer of the market all based on go nogo complete data sets continually retrieved by doing a four part routine that includes: monitoring, analysis, decision making and taking timely action to have closer before another cycle of the routine. The most common timely action is hold to let more profits accumulate.
