If you want to fail as a trader, study TA

[Mysteron]

Quote from The Expert:

What were the low risk entries for BDX, and WHY

TE

So TE, are you implying that these BOBs are signs of where the price is heading? If the previous bar is taken into account then a BOB could be interpreted as a reversal pattern, similar to engulfing patterns in candle sticks. I suspect that a BOB on a 1 minute chart should, by itself, be used to decide on trade direction, regardless of the direction of the preceding bar.

Looking at the 1 minute BDX chart today, there is red BOB at 9:36am which follows a smaller (green) bar, which indicates the price would continue to fall, but how far? Some expectation of where the price could fall to would be needed surely? Or is the presence of the BOB a sign of a low risk short trade with stop at the top of the BOB, or alternatively a tighter stop at the top of the previous bar, and then sell when the next reversal (green) bar occurs. Higher timeframe should show a lower level but price may not get close to it, so as a target it may not be of much use.

The two lower white lines seem to have been set at the first two highs and lows of the day to define a trading range for that day. That range is a bit less than 50c though.

At 11:13am and again at 11:25am there were further BOBs, green this time, suggesting a long trade with stop at the bottom of the BOB, or alternatively a tighter stop at the bottom of the preceding bar. Now that a trading range has been defined a target can be set, say at 2/3rd of the range.

Obviously thats with hindsight and maybe all bollox

 

[ProfLogic]

Instead of riddles I thought I would post a simple naturally structured chart from today annotated to show trade areas and why they were trade areas.

Top portion of the chart is price broken down into 343 constant volume bars. Each bar is exactly equal to the 343 contracts traded at the time of the creation of the bar.

Middle indicator is a smoothed Ergodic matched to the price bars and their natural cycles. I use this indicator to trigger trades and most exits at the oscillations (color changes). These oscillations show the natural cycles of price action.

Lower Indicator is identical as the middle indicator with the added benefit of being 7X slower. Since being 7 times slower this particular indicator is used to show the strength of price in a particular direction; Full Strength Up, Full Strength Down, Neutral ERG Up or Neutral ERG Down. I use this indicator to trigger some exits at the oscillations (color changes) and to show overall chart strength at any particular instant.

I think the annotated areas pretty well speak for themselves.

This is Light Sweet Crude, electronic June 2010 contract.

 

[ProfLogic]

Quote from Fibbin-Archie:

I assume the Prof is recommending a fixed method or system of analysis.

When I wait for my regular set ups I tend to do well, whereas if I start taking trades (usually out of boredom) based on other analysis methods (you could say randomly) I tend to not do so well.

Nicely stated . . . I call the boredom trading, revenge trading and I almost always lose when I attack a chart without a solid plan or structure.

 

[MarketMasher]

Quote from The Expert:

What were the low risk entries for BDX, and WHY

TE

The resistance at 75 because of the belly of the whale.

 

[Fibbin-Archie]

Quote from ProfLogic:

Nicely stated . . . I call the boredom trading, revenge trading and I almost always lose when I attack a chart without a solid plan or structure.

Certainly a psychological bug bear.

I can't remember who said it but I quote, "Overtrading is one of the biggest challenges to traders. The hallmark of the successful professional is that they actually trade very little. They wait for the PERFECT set-ups because they know that is the ONLY time that the odds are really with them, and that makes the difference between trading and gambling."

Thanks for the chart shot.

 

[The Expert]

Quote from Traduk:

T.E.,

With BDX your lines fantastically delineated both areas of sideways action. Without knowing how those lines are arrived at a four year old could click\click and place lines that would look equally as good.

You have never made a call in advance of any move and any charts shown are always not only after the fact but as usual devoid of detail.

Why do you keep showing BDX. It is\was a $75 stock that has moved a huge $3 and spends most of its time going sideways in moves that would drive a daytrader to the point of losing the will to live. It is a useless candidate for daytrading and runs totally contrary to your often mentioned time=money.

There are an awful lot of things that a trader would have done if as you have done, aim to seek an audience. It is nearly three months since you appeared in a self proclaimed fanfare and in the interim you have done nothing to even hint at worthiness for your handle.

MK, please educate TK



TE

 

[The Expert]

Quote from macattack:

I see no good entries, probably because I don't have a clue what to look for.

Jumping in at the open would have been great if you were psychic and put a random stop loss in since there was really no point of reference as to where to put one.

I have no idea what those horizontal lines are. Tried correlating them to something, but it's just not happening.

Solitaire MK

Did you find that pdf yet

And remember, you have been warned, no shouting in class:eek:

TE

 

[macattack]

Quote from The Expert:

MK, please educate TK



TE

The most important thing for daytrading US Stocks is an adequate range. You want the range to be above 50 cents for as long as possible.

Once you get to the part where you actually enter a trade, put on a stop loss, and exit the trade I have no clue.

 

[The Expert]

Quote from Fibbin-Archie:

Re. horizontal lines, I'd hazard they're just plain and simple consolidation ranges.

Actually this thread is getting pretty big now, including the original thread at the site TE doesn't like to mention. It would be nice to get down to some substance for once.

Good to hear from you Traduk...

TE, I'm going to take a guess at your method:
Range break outs based on accumulation / distribution... so, pretty much Wyckoff...
Do I get a silver star?

Who is this Wankoff fellow

TE trades like no other

Do you remember my avatar from the site we dare not mention

Oops, that is not the CORRECT one

TE

 

[macattack]

Quote from The Expert:

Solitaire MK

Did you find that pdf yet

And remember, you have been warned, no shouting in class:eek:

TE

I didn't find the particular pdf I was looking for, but found a different one yesterday and another one today.

So you're saying to be patient.

I'm still not sure where I would have entered a short. Especially if I missed the huge move down. Maybe at 73.75.