I should also point out that giving price room is not only a function of one's fear and anxiety levels but also of his ability to make the proper entry. If one enters at the right place, he can give price TONS of room. But if he waits for multiple confirmations, not so much. Or at all. He then winds up entering at the exact moment when everybody else is selling. (Ring a bell?)
If You Can Draw A Straight Line . . .
- Thread starter dbphoenix
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Enjoying reading game's journal here: http://www.elitetrader.com/vb/showthread.php?s=&threadid=264682&perpage=40&pagenumber=10 on the method.
I noticed that many of the TL charts you (dbP) referenced are "gone", like this one http://cdn3.traderslaboratory.com/f...56897-re-trading-off-daily-charts-image10.png were they "moved" or are they gone forever? The reason I ask, is in this one you corrected game's view on the chart, but not in words.
I noticed that many of the TL charts you (dbP) referenced are "gone", like this one http://cdn3.traderslaboratory.com/f...56897-re-trading-off-daily-charts-image10.png were they "moved" or are they gone forever? The reason I ask, is in this one you corrected game's view on the chart, but not in words.
I really don't know what the deal is with the charts. Apparently ET doesn't like to store them for any length of time, and I don't save this stuff since the expiration date is pretty short. Those who want to follow along are just going to have to do it day by day. After a day or so, it's all fishwrap anyway.
I'm tired of laying tile this morning, need a new wet saw blade anyway. So, I drift back to trading thoughts.
Right now, I'm thinking. "If someone asked me to summarize DB's approach in one sentence". What would I say?
My first run at it would be:
Trade the first pullback after something that suggest a change in market sentiment regarding the supply/demand balance.
Now to HD for a new blade.
Right now, I'm thinking. "If someone asked me to summarize DB's approach in one sentence". What would I say?
My first run at it would be:
Trade the first pullback after something that suggest a change in market sentiment regarding the supply/demand balance.
Now to HD for a new blade.
One sentence? No. But an index card? Yes.
To start, again:
(All of this must of course be done ahead of time, i.e., before the trading session begins.)
"3a" would be to trade reversals within trading ranges -- or after buying/selling climaxes -- and retracements in trends. Avoid breakouts.
Fourth step? Manage the trade by monitoring the balance between buying pressure and selling pressure. Exit when the balance is no longer in your favor.
C'est tout.
To start, again:
- The first step for a trader is to determine the current trend of the market.
The second step is to determine one's place in the current trend.
The third step is to determine the proper timing of one's entry into whatever it is he's trading.
-- Richard Wyckoff
(All of this must of course be done ahead of time, i.e., before the trading session begins.)
"3a" would be to trade reversals within trading ranges -- or after buying/selling climaxes -- and retracements in trends. Avoid breakouts.
Fourth step? Manage the trade by monitoring the balance between buying pressure and selling pressure. Exit when the balance is no longer in your favor.
C'est tout.
Here's the link: http://www.traderslaboratory.com/forums/wyckoff-forum/16270-if-you-can-draw-straight-line.html
And the thread is only four posts long. But it does include the 200pt trade in the NQ.
I traded a later entry than I have been lately. Largely due to the fact that two of the three best entries closest to the danger level occurred premkt, and while I have been paper trading premkt, I have not yet added it to my trading plan. Soon enough I will, but not soon enough for yesterday
The third nice entry occurred in the midst of what to me was a fairly violent open. I tried to get in. But as DbPhoenix noted, sellers (and that includes short sellers) could not get their offers filled. No sooner did I lower my offer and the the bid had moved another two ticks below. On the second break of the hinge, I got lucky, and I was finally filled on a brief microbounce. I lost 2 3/4 opportunity points trying to finesse the entry. I wasn't looking for confirmation at that point. I was looking for someone who would buy from me!
You can see the three arrows which to me indicated that the LOLR would be down. DbPhoneix referred to the first two of these yesterday before the market opened.
My exit at 114.50 had some slippage involved. I saw a HL, and it was right at the 113.50 which had been R a few days back.
I then pretty much froze up for about fifteen minutes, and called it a day. I did not play it perfectly, but I played it fair and square. A perfectly played trade, for me , would have had me short around 139.75 and getting covered at 3102 +/-, so 27.50 points out of a possible 37 isn't so bad. Besides, I'm new at this stuff.
I know I've said it before, but after this post I am done with blotters. I think I have done more than enough to show that this works, with real $$, in real time, at least for me.
EDIT Sorry for cutting off the time scale on the chart. I just realized now that I screwed the cut & paste & edit a bit, and I have too much I want to do today to worry about correcting it.
Hi Db,
may I know how did you anticipate that there would be a reversal given that we were only 5 or 6 points away from the top of the trading range ?
Shouldn't you mention that we should look for an opportunity to go long which is more likely to happen since we BO towards the upside? Or is it just simply your advice to us that we should be more open to how the price move other than just looking for long by that time?
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