Ghost of If You Can Draw A Straight Line

[bmwhendrix]

I think I understand what you are saying. So when you speak of fearfulness or less fearfulness, it is all in the non-rational arena, where some degree of fear is influencing the trade rather than pure rational observation and reaction to price.

Thanks for there response.

 

[r3algood]

Bigger picture for today (4hr and 1hr):

Approaching supply line of down sloping trend channel, a few opportunities may present themselves.

1. Supply overwhelms demand as the market approaches the supply line and we head lower towards the mean of the TC. In this case I would be looking for break of a shorter term demand line on say the 5m or 1m right near the supply line and a subsequent retracement for entry according to SLA principles.

2. Demand finds the strength to push through supply at the supply line. In this case I would be looking for a break of the line and then a retracement for entry according to SLA.

As always, I will focus on not letting any biases I may possess influence my behavior today, I will focus on measuring the balance or imbalance between supply and demand and take my signals from market generated information.

Good day to all

 

[r3algood]

SLA paying dividends today, a few small scratches, one loser, and then caught the current short at 36.75 based on 1m SLA demand line break and retracement with entry below v retracement.

 

[r3algood]

Here is the 36.75 short.

 

[drownpruf]

Here is the 36.75 short.

Of course! Beautiful entry. Kudos.

 

[dbphoenix]

I hope today re-emphasizes the importance of understanding AMT and mean reversion. I also hope that all of you wrote down not only the where and when and how you entered but the WHY you entered. Or didn't. You can now go back and analyze your thought processes to avoid making the same mistakes again. At the very least, ask yourself what you needed to know in order to make more, if not the most, out of today, then focus on adding that determination to your prep.

I'll also repeat that success or failure depends in large part -- in very large part -- on the quality of the prep work done. If one is lost at the open, it is solely because he isn't prepared. And if he isn't prepared, he ought not to trade that day at all.

I also want to remind everyone that if you're looking at multiple monitors and multiple bar intervals and indicators and whatever else because you think it's helping you, you are only retarding your progress and making it that much more difficult to understand this. The difficulties people have with the SLA have less to do with the SLA and more with self-sabotage.

If the prep is done correctly, all you should be looking at when your trading session begins is a 1m bar chart. No multiple bar intervals, no candles, no colors, no volume. Just a plain old bar chart. You can't weaken your fear if you don't understand what you're looking at, and you can't understand what you're

And for those who are still getting their prep act together, a reminder that "When Trading Journals Don’t Work" can be found at post 706.

 

[trip]

I hope today re-emphasizes the importance of understanding AMT and mean reversion.

I know the importance of understanding AMT ( because you tell us it is important and as I can see it in hindsight). But still - and sorry if this is a stupid question:

Did today highlight the importance of understanding mean reversion because today price oscillated round the pre-market mean? Or did today highlight something else?

And even if so, was today "special" in this regard or just another mean-reverting day among others?

 

[dbphoenix]

I know the importance of understanding AMT ( because you tell us it is important and as I can see it in hindsight). But still - and sorry if this is a stupid question:

Did today highlight the importance of understanding mean reversion because today price oscillated round the pre-market mean? Or did today highlight something else?

And even if so, was today "special" in this regard or just another mean-reverting day among others?

How is "mean reversion" defined?

 

[dbphoenix]

I hope today re-emphasizes the importance of understanding AMT and mean reversion. I also hope that all of you wrote down not only the where and when and how you entered but the WHY you entered. Or didn't. You can now go back and analyze your thought processes to avoid making the same mistakes again. At the very least, ask yourself what you needed to know in order to make more, if not the most, out of today, then focus on adding that determination to your prep.

I'll also repeat that success or failure depends in large part -- in very large part -- on the quality of the prep work done. If one is lost at the open, it is solely because he isn't prepared. And if he isn't prepared, he ought not to trade that day at all.

I also want to remind everyone that if you're looking at multiple monitors and multiple bar intervals and indicators and whatever else because you think it's helping you, you are only retarding your progress and making it that much more difficult to understand this. The difficulties people have with the SLA have less to do with the SLA and more with self-sabotage.

If the prep is done correctly, all you should be looking at when your trading session begins is a 1m bar chart. No multiple bar intervals, no candles, no colors, no volume. Just a plain old bar chart. You can't weaken your fear if you don't understand what you're looking at, and you can't understand what you're

And for those who are still getting their prep act together, a reminder that "When Trading Journals Don’t Work" can be found at post 706.

For some reason, the end of the next to last paragraph got cut off. It should read "You can't weaken your fear if you don't understand what you're looking at, and you can't understand what you're not looking at."

 

[green.green]

Quick question - I tend to pull up a bunch of charts before the market opens, looking at multiple time frames but when the opening bell sounds I'm just looking at 1. I'm assuming this is okay as long as the multiple charts are adding something to my analysis - correct?