The point is not about whether or not to use indicators. It is however twofold. 1. All the extra work and study that is going in to learning this straight line system is unnecessary since the same areas can be picked out with a couple simple indicators. This then makes the system unenlightening -- 2. There needs to be full-on discussion of stop placement as part of a prudent money management technique and there is very little information being offered by the presenter of the system details.
Gold, Silver, and Indexes Using Price Action
- Thread starter Gringo
- Start date
Q is approaching the 50% area. This is more to see and gauge the strength of demand. Price weakening around here could imply there's potential to visit the swing low again below 105 or go below it. I am just keeping an eye on the proceedings as there isn't much for me to do until price shows weakness and turns. In case price shows strength then I have no plans to enter to the long side.
Gringo
Gringo
Attachments
Q is approaching the LSH area where the price turned downward last time. The conviction in price this time around has been evident by the strong upward move. The UL of the TC is also not too far away. The trend for years has been up and the probabilities are on the side of strength, unless and until of course the strength wanes. NQ is showing strength so there's probably going to be a gap up open for Q.
We are getting close to areas of interest and a bit more vigilance is required here. The underlying strength is visible and in its presence weakness less so. We might go into the new high area which is is not only the new high of this bull market but also is very close to the all time high from an era that now seems long forgotten. The monthly chart shows that with more clarity. We can see the steepness of the rise and this time around it has been consistently moving upwards. During the tech bubble the rise was even more dramatic and energetic. We don't know what the future holds but we yet could see another dramatic rise not unlike the one seen around the turn of the century.
Despite so many unknowns, including the fundamental, political, or geopolitical shifts, we stick with our basic plan and take it one day at a time. I am not clairvoyant enough to see into the future, but can see price move up and down and using trend channels, trading ranges, and demand/supply lines can increase the odds of correctly guessing the probable course. Waiting for the extremes has been working out well for me.
There are periods like this where I have nothing much to do other than wait and observe, like a leopard in the bush, eyeing the gazelle dart here and there. Like the gazelle the price is also immersed in a dance, seemingly random, yet containing valuable clues. Clues that may have no meaning for someone not cognizant of their existence or value. The leopard knows though, the meaning of that dance and his own preferences. He also knows when the odds favor one particular outcome over another. Scratching is part of that plan and is dependent on the movement of the gazelle and the time the leopard is willing to exert chasing it. If the expected doesn't happen within a certain time the chase is abandoned. If the expected does happen the reward is more than worth the effort.
Gringo
We are getting close to areas of interest and a bit more vigilance is required here. The underlying strength is visible and in its presence weakness less so. We might go into the new high area which is is not only the new high of this bull market but also is very close to the all time high from an era that now seems long forgotten. The monthly chart shows that with more clarity. We can see the steepness of the rise and this time around it has been consistently moving upwards. During the tech bubble the rise was even more dramatic and energetic. We don't know what the future holds but we yet could see another dramatic rise not unlike the one seen around the turn of the century.
Despite so many unknowns, including the fundamental, political, or geopolitical shifts, we stick with our basic plan and take it one day at a time. I am not clairvoyant enough to see into the future, but can see price move up and down and using trend channels, trading ranges, and demand/supply lines can increase the odds of correctly guessing the probable course. Waiting for the extremes has been working out well for me.
There are periods like this where I have nothing much to do other than wait and observe, like a leopard in the bush, eyeing the gazelle dart here and there. Like the gazelle the price is also immersed in a dance, seemingly random, yet containing valuable clues. Clues that may have no meaning for someone not cognizant of their existence or value. The leopard knows though, the meaning of that dance and his own preferences. He also knows when the odds favor one particular outcome over another. Scratching is part of that plan and is dependent on the movement of the gazelle and the time the leopard is willing to exert chasing it. If the expected doesn't happen within a certain time the chase is abandoned. If the expected does happen the reward is more than worth the effort.
Gringo
Attachments
Traders trade not the market but their perceptions of it - DbPhoenix
This wonderful drop was not availed by me. Not because I didn't get an entry signal but because I disregarded it. Without my realizing I had formed a belief that price would go higher to the top of the TC before turning down. That was my perception of the market but not what the market was doing. Even though a day or so ago I had tried to warn another trader about perceiving round numbers to be important, I ended up being exactly what I had thought I was beyond - not trading the market but my perception of it.
What I have learned is that my judgement isn't as fool proof as I had started to believe it was. Changes are being made to address this lapse. The good thing is that the system worked fine and doesn't need tweaking. It's me who has to realize when the Matrix has me.
Gringo
This wonderful drop was not availed by me. Not because I didn't get an entry signal but because I disregarded it. Without my realizing I had formed a belief that price would go higher to the top of the TC before turning down. That was my perception of the market but not what the market was doing. Even though a day or so ago I had tried to warn another trader about perceiving round numbers to be important, I ended up being exactly what I had thought I was beyond - not trading the market but my perception of it.
What I have learned is that my judgement isn't as fool proof as I had started to believe it was. Changes are being made to address this lapse. The good thing is that the system worked fine and doesn't need tweaking. It's me who has to realize when the Matrix has me.
Gringo
Attachments
- “A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to transform himself. That’s the kind of thing winning traders do.”
- “The elements of good trading are: 1, cutting losses. 2, cutting losses. And 3, cutting losses. If you can follow these three rules, you may have a chance.”
Last edited:
Yes! Exactly! The only true edge in trading is capital and the prudent use thereof.
The line at the top is drawn differently by each trader. The lines are simply showing the current drift of the market. Waiting for a tag of the lines has the trader missing the sell in late December, the buy in early Feb and this current sell. In addition, the lines could have been drawn lower with a smaller angle and both tops would have been tagged. So, don't get too wrapped in line tags. Rather, look at what is happening, not why or who, in real time to make decisions on long and short.--Best Wishes--IzzyTraders trade not the market but their perceptions of it - DbPhoenix
This wonderful drop was not availed by me. Not because I didn't get an entry signal but because I disregarded it. Without my realizing I had formed a belief that price would go higher to the top of the TC before turning down. That was my perception of the market but not what the market was doing. Even though a day or so ago I had tried to warn another trader about perceiving round numbers to be important, I ended up being exactly what I had thought I was beyond - not trading the market but my perception of it.
What I have learned is that my judgement isn't as fool proof as I had started to believe it was. Changes are being made to address this lapse. The good thing is that the system worked fine and doesn't need tweaking. It's me who has to realize when the Matrix has me.
Gringo