Ghost of If You Can Draw A Straight Line

[trip]

FWIW, this is what I'm looking at for this evening, aside from the weekly chart posted Friday. This is all I'm looking at. There's no need for me to add anything else. This is simple. I know exactly what to do with this. There is nothing here to ignite any sort of fear response. It's just a matter of drawing a straight -- lateral or diagonal -- line.

Db, I am getting more and more confused. So that is all you are looking at. Ok. What do you do with it in the context of "SLA" (that you wouldn't have done if the lines weren't there)?

I interpret your last few posts to point out that most (all?) of us "draw too many lines". If that is so, how do we distinguish "important" events worthy of a line from events not worthy of a line?

To me, a line is just a marker on a chart. I think of it as a "zone" to watch when price is close. I draw lines where I see the means of balancing movement - to remind me to stay out - and sometimes at the top and bottom of ranges - again to remind me to stay out - and at what I perceive to be "major" swing high and lows.

If one is trading "SLA" and only "SLA", are the lines (even the ones you draw) really important at all? Even context like having a filter for ranges as I do is not in that plan, is it?

Sorry for the questions but I am asking because I don't understand.

 

[dbphoenix]

Db, I am getting more and more confused. So that is all you are looking at. Ok. What do you do with it in the context of "SLA" (that you wouldn't have done if the lines weren't there)?

I trade it as I would any hinge. The lines are there to point out the hinge to others. But the hinge is there whether there are any lines drawn to delineate it or not.

If price drops out of the hinge, then the lower limit comes into play and I trade that as I would any limit: retrace after a reversal or retrace after a breakdown.

I interpret your last few posts to point out that most (all?) of us "draw too many lines". If that is so, how do we distinguish "important" events worthy of a line from events not worthy of a line?

AMT.

To me, a line is just a marker on a chart. I think of it as a "zone" to watch when price is close. I draw lines where I see the means of balancing movement - to remind me to stay out - and sometimes at the top and bottom of ranges - again to remind me to stay out - and at what I perceive to be "major" swing high and lows.

If one is trading "SLA" and only "SLA", are the lines (even the ones you draw) really important at all? Even context like having a filter for ranges as I do is not in that plan, is it?

Again, the purpose of the SLA is to focus the trader's attention on price's stride and the balance between supply and demand. If he can do that without the aid of a line, there's no reason to draw it in.

There are currently four journals with nearly five thousand posts and hundreds of chart examples. I wish I could make it clearer, but I can't. If it is not yet clear, I doubt that it will be.

 

[trip]

If price drops out of the hinge, then the lower limit comes into play and I trade that as I would any limit: retrace after a reversal or retrace after a breakdown.

I understand that as the best entries are those that signal after price reacts to a level depicted by AMT. That is how I have interpreted the pdf you posted and previous discussions on the subject, including those at TL.

There are currently four journals with nearly five thousand posts and hundreds of chart examples. I wish I could make it clearer, but I can't. If it is not yet clear, I doubt that it will be.

I can't speak for others but for me the confusion is I get the "basic SLA" as you describe it mixed up with my extra filters such as not trading in a range or congestion. I use "extra" lines to remind me of stuff you deem unimportant for the "SLA" method itself. If I remove those lines there would be no confusion (for me anyway).

Thanks for taking your time.

 

[txpoker]

Certainly is - a few of them

RN

maybe, but those are only for you

 

[Fluke]

I can't speak for others but for me the confusion is I get the "basic SLA" as you describe it mixed up with my extra filters such as not trading in a range or congestion. I use "extra" lines to remind me of stuff you deem unimportant for the "SLA" method itself. If I remove those lines there would be no confusion (for me anyway).

Back testing a filter-less SLA plan produced a positive expectancy.

There are three entries: retracements, reversals, and breakouts. Both reversals and breakouts can be played by simply taking the first retracement following their occurrence, so there is really only one entry, retracements. SL or DL break indicates the stride of the market has changed and could be indicative of a trend move against the markets previous direction. Once this happens, you trade the first retracement.

That's all anyone needs to know to provide a net positive result.

However, waiting for the aforementioned process to occur at the extremes of a diagonal range, i.e. trend channel, or at the extremes of a later range, i.e. box, increase the odds of your trade being successful as the likely course of action will be to test the other side of whatever range (lateral or diagonal) that you we are in. And, should price have a great enough distance between its upper and lower extremes, the likely duration and extent of the move could perhaps be greater. If price simply sails through whatever you pegged as an extreme, or provides you with an entry and it fails, then simply repeat the process, but going the other direction.

 

[Redneck]

maybe, but those are only for you

Only reason to trade – make money
Only opinion that matters – price’s
Only way to make money trading directionally – get on board with price
Only thing that matters – what price is doing
Only indicator that matters – one’s PnL
Only takes one other trader in the world – to negate one’s edge
Only real obstruction to one trading successfully – their self
Only trade - when 100%

Losers must be kept – small or b/e only
Fight the mkt / price – one only ends up broke

Doesn't matter what one thinks – only what one does

There is not – only one way to trade successfully

There are more


RN

 

[dbphoenix]

I'm not real clear about the sudden debate over the value of the SLA when it's been discussed at length since last July. Those who want to learn it are welcome to post here. Those who want to argue about it please post elsewhere.

 

[Redneck]

Folks (especially aspiring traders) should question – everything

It is healthy


RN

 

[dbphoenix]

Back testing a filter-less SLA plan produced a positive expectancy.

There are three entries: retracements, reversals, and breakouts. Both reversals and breakouts can be played by simply taking the first retracement following their occurrence, so there is really only one entry, retracements. SL or DL break indicates the stride of the market has changed and could be indicative of a trend move against the markets previous direction. Once this happens, you trade the first retracement.

That's all anyone needs to know to provide a net positive result.

However, waiting for the aforementioned process to occur at the extremes of a diagonal range, i.e. trend channel, or at the extremes of a later range, i.e. box, increase the odds of your trade being successful as the likely course of action will be to test the other side of whatever range (lateral or diagonal) that you we are in. And, should price have a great enough distance between its upper and lower extremes, the likely duration and extent of the move could perhaps be greater. If price simply sails through whatever you pegged as an extreme, or provides you with an entry and it fails, then simply repeat the process, but going the other direction.

What he said.

I will add, though, with regard to trading emotionlessly, that the whole notion of suppressing emotions will not work over the long haul. Yes, it is possible to trade successfully while suppressing emotions, but this means a persistent and perpetual struggle with the self, and the psychological and physical costs of maintaining this over twenty or thirty or forty years are not difficult to imagine.

Having said that, and in re Fluke's post, the more committed one is to a given trade, the more likely he is to screw it up, much less manage it properly, if he even works up the courage to take it at all. If one has not yet dealt with his fears of being wrong and/or losing money, then he needs either to trade the SLA as written or try something else.

Trade correctly. The P&L will take care of itself.

 

[dbphoenix]

Folks (especially aspiring traders) should question – everything

It is healthy


RN

You've made your points. There's no need to make them again and again.