Here are my first two entries today off a 200 tick chart. Rejection of mean followed by lower high and then break of SL followed by higher low. My entries were good but the speed of the pullback on the first took a fair amount of my profit. Any advice for slow fingers?
Ghost of If You Can Draw A Straight Line
- Thread starter dbphoenix
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So in essence take yesterday for example without being at the bottom of the TC if someone had the idea to exit or even go long you would have to ask yourself why? And if lets say one did take a long you'd have to ask well where do you think this long is really going to go in relation to all the selling before hand adding in how we have moved thus far etc. If we aren't at an area that would cause enough buying interest to propel us higher and higher or have the entry be worth it why exit the short and then even attempt a long?
What does it mean - if anything if price doesn't make it back to the top of the channel?
I don't have tons of time for this, but I will point out one aspect of this morning's chart which will be useful tomorrow and the next day and the days thereafter.
As I've said, the best opportunities arise in an environment of confusion. If everybody else is afraid and you're not, you can take advantage of that fear.
This morning, the levels beyond which traders could not find trades were 4 and 13. Therefore, the first thing one looks for is what traders do if and when they venture beyond those limits.
The first time they do so is just after the open, when they prowl around below 04, down to 97. They then return to the range before pulling a U-ey. What is so special about the two bars indicated by the arrow?
As I've said, the best opportunities arise in an environment of confusion. If everybody else is afraid and you're not, you can take advantage of that fear.
This morning, the levels beyond which traders could not find trades were 4 and 13. Therefore, the first thing one looks for is what traders do if and when they venture beyond those limits.
The first time they do so is just after the open, when they prowl around below 04, down to 97. They then return to the range before pulling a U-ey. What is so special about the two bars indicated by the arrow?
rejection of the midpoint and a lower high.
But they return to the mean in the first place because that's where all the trades are supposed to be. What happened?
not sure if I fully understand the question. If you mean the mean of the range btw 04 and 13 I would say that the drop out of the range was a test to see if traders were interested in those prices. At that moment traders couldn't find trades lower so price returned to the mean to find trades. Since the mean was rejected trades were then found again and since no traders were found higher than the mean price began to drop towards the opposite end moving toward 96.
What does it mean that "the mean was rejected"? Why was it rejected?
Buyers and sellers couldn't agree on that price to complete transactions.
See that's a great question and I was going to ask that before what's the difference between a rejection vs. price just not going higher or lower without a "faster reaction." Hmm I want to say something along the lines of supply overcame demand or there was greater interest by sellers and they wanted in there but I'm not exactly sure. Is a price that is rejected different than getting to the same price than fizzling out shown by a slowing pace?
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