Here is my lowest time frame chart (133 tick). The grey parallel lines are basically a channel with a 50% line in the middle. The dashed lines are this same distance above and below the channel.
If You Can Draw A Straight Line . . .
- Thread starter dbphoenix
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Here is my daily chart. I still working off the pink channel.
I felt like I was reading price fairly well today. I tried not deleting any lines I drew today. Here is the final result. The pink horizontal lines are the levels I had on the chart before I started trading. The blue and red ones were added during the trading
YT
With all due respect Sir;
That is one busy chart
You sure paralysis by analysis isn't occurring
One other thought - pay attention to the horizontal S&R with the same attention as the Diagonal - but possibly with fewer lines for both??
Looking for low risk entries... not all entries
RN
With all due respect Sir;
That is one busy chart
You sure paralysis by analysis isn't occurring
One other thought - pay attention to the horizontal S&R with the same attention as the Diagonal - but possibly with fewer lines for both??
Looking for low risk entries... not all entries
RN
Quote from Redneck:
YT
With all due respect Sir;
That is one busy chart
You sure paralysis by analysis isn't occurring
One other thought - pay attention to the horizontal S&R with the same attention as the Diagonal - but possibly with fewer lines for both??
Looking for low risk entries... not all entries
RN
I appreciate the feedback. I know the chart looks very busy. Like I said I tried not deleting any lines that I drew today and a lot of them I would have. Its kind of an exercise on what my mind was focused on.
I only took two trades and they both were profitable not that that means much. Both were low risk the way I framed them.
Fair enough
Two question though (and theyâre rhetoricalâ¦, simply offering them up as something to review)
Your two trades today â long or short
And were you trading â a retraceâ¦, a breakout, or a reversal
Reason I ask..., intraday trend today was down â were you in sync with it (the forest vs trees view)
Doesn't get any better
RN
The lines are supposed to be a help. That's why I suggested them way back when (and by "way back" I'm talking several years). But at some point, they can and generally do become a hindrance. If I were mentoring somebody, I'd know when to tell him to move on and put the lines behind him, so to speak. But I have no control otherwise over who does what and how and for how long and to what extent. Thus some/many people "fail" with the lines and conclude that they're useless. But they are rather a device.
If you need them, use them, and don't feel bad about it. But remember that the goal is to do without, to have as clean a chart as is humanly possible.
Consider, therefore, the following:
You have to see the hinge to begin with. If you do, you obviously see also the midpoint. You see that price has risen from the apex of the hinge and is returning to the midpoint of the hinge, perhaps to test it. This test occurs and price bounces off that level about 15m before the open. If you take the long, and there's no reason why you shouldn't (if you wait until the open, you won't likely be filled), you're good until price reaches 78.
For whatever reason, buyers choke at 78. You don't need to know why because this is where the demand line comes in. It's broken. You exit. You stand aside. When price reaches 73 and attempts to recover, it fails to do so, and down becomes the line of least resistance, even though all this is happening at a level higher than 50% of the rally (71).
So you short. You may have to exit and re-enter a couple of times, but you won't lose anything, and if you can wait to see if price is able to exceed any previous swing high, there's no reason to exit at all until after you hit 57. You may notice also that all that congestion from 1015 to 1100 centers around the 50% level of the rally (again, 71), and once that goes, it goes.
The only line you "need", then, is the first demand line. After that it's a series of failures to breach the preceding swing high, and, eventually, a capitulation.
If you need them, use them, and don't feel bad about it. But remember that the goal is to do without, to have as clean a chart as is humanly possible.
Consider, therefore, the following:
You have to see the hinge to begin with. If you do, you obviously see also the midpoint. You see that price has risen from the apex of the hinge and is returning to the midpoint of the hinge, perhaps to test it. This test occurs and price bounces off that level about 15m before the open. If you take the long, and there's no reason why you shouldn't (if you wait until the open, you won't likely be filled), you're good until price reaches 78.
For whatever reason, buyers choke at 78. You don't need to know why because this is where the demand line comes in. It's broken. You exit. You stand aside. When price reaches 73 and attempts to recover, it fails to do so, and down becomes the line of least resistance, even though all this is happening at a level higher than 50% of the rally (71).
So you short. You may have to exit and re-enter a couple of times, but you won't lose anything, and if you can wait to see if price is able to exceed any previous swing high, there's no reason to exit at all until after you hit 57. You may notice also that all that congestion from 1015 to 1100 centers around the 50% level of the rally (again, 71), and once that goes, it goes.
The only line you "need", then, is the first demand line. After that it's a series of failures to breach the preceding swing high, and, eventually, a capitulation.
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