anyone understand this pictograph.
Holy Grail
- Thread starter Spectre2007
- Start date
its a range expansion. These are the only variables that should matter to a trader.
Weeks High
Prev Days High
Days High
Open
Days Low
Prev Days Low
Weeks Low
Weeks High
Prev Days High
Days High
Open
Days Low
Prev Days Low
Weeks Low
most people can only focus in on the open, the current days high and low and the previous days highs and lows. Its hard to remember past weeks price action.
Its tough to do this but, thats where the risk lies, as more fear and greed enter the market place, the price tends to follow these rules.
Stay long till it test days high and sell, but if it busts days high get long. And the samething applies when price is below the open.
Its a combination of:
1) open range trade
2) reversion to mean
3) trendfollowing
As Jack would say, always stay in the market, stay in the direction of price movement, and reverse accordingly. Its much harder to do then it sounds. What ends up happening is your ego ends up taking a blow when you get chopped up, but the key is to trade small as possible initially then escalate as more emotion enters the market place.
Eventually you just end up surfing the volatility waves.
Its tough to do this but, thats where the risk lies, as more fear and greed enter the market place, the price tends to follow these rules.
Stay long till it test days high and sell, but if it busts days high get long. And the samething applies when price is below the open.
Its a combination of:
1) open range trade
2) reversion to mean
3) trendfollowing
As Jack would say, always stay in the market, stay in the direction of price movement, and reverse accordingly. Its much harder to do then it sounds. What ends up happening is your ego ends up taking a blow when you get chopped up, but the key is to trade small as possible initially then escalate as more emotion enters the market place.
Eventually you just end up surfing the volatility waves.