IN THIS THREAD: IronFist learns (the elusive) PRICE ACTION

Ironfist,

I think you're confused.

In the diagram, you've got lows marked as "lower highs", or "LH".

Dips in an uptrend are higher lows.

Pull backs in a downtrend are lower highs.

For instance, in diagram 1, the first pull back in the uptrend is a higher low.

It is marked as a lower high, which it is not.
 
Quote from achilles28:

Ironfist,

I think you're confused.

In the diagram, you've got lows marked as "lower highs", or "LH".

Dips in an uptrend are higher lows.

Pull backs in a downtrend are lower highs.

For instance, in diagram 1, the first pull back in the uptrend is a higher low.

It is marked as a lower high, which it is not.
More...

Yes, he made a mistake on that one. Anyways IF there is no right answer to your question. You must define trend for yourself, in the time frame that you choose. One mans trend is another mans retracement, is just chop to someone else....its subjective. i would still encourage you to identify one aspect of PA and focus in on that.

Some people define trend using sucessful retracements, some use points, some use time...I prefer to idnetify trend by how it reacts at major and minor s/r levels.
 
this position is now in profit and there is some resistance up here-for now.I am intending to hold until 12.30 (the next reversal zone)The predicted pattern shows the biggest move is between these 2 time zones today.
If this goes the way i expect i wouldn't be surprised if we go in the red
 
IF, at this point, you need to work on demo trading. Place some trades at what you believe is a setup for example in ninja trader.

See over time for a few months if you can begin to get profitable demo trading before you risk any real money.

I keep feeling maybe I am wrong that you think if you understand everything correctly, you will have a winning trade.

In real life what happens is that you will have a probability of success of a trade turning into a winning trade.

Once you have that probability, you need to determine success by how much profit vs loss you risk on the trade. For example, if you have a low win %, you will need to stay in the trade longer to achieve a higher level of profit. If you have a high win%, you can take profit quicker.

For example, lets say you style is scalping and you have a 80% win ratio. You can then actually take stop losses farther away than your win profit target.

However, let's say your swing or position trading, you may need to take more stops at lower amounts, to let your profits ride.

Finally, you need to have enough money to be able to trade.
 
Quote from mitsubishi:

this position is now in profit and there is some resistance up here-for now.I am intending to hold until 12.30 (the next reversal zone)The predicted pattern shows the biggest move is between these 2 time zones today.
If this goes the way i expect i wouldn't be surprised if we go in the red
More...


In the spirit of Livermore i am 'sitting tight' as we make new lows towards 12.30. In terms of price action the bulls got trapped and we are now seeing capitulation .Remember,doing nothing is a position;regardless of whether or not you have a trade on.
 
Mustn't be greedy i am out now and will look to short around 870 872 - i can sense the turn may be coming 15 minutes early.If it carries on down ,no need to chase it,i made good money so far.
 
oops, yeah i messed up the label on that chart.

you guys still know what i meant tho.

Mandlebrotset, why are you still in this thread if all you're going to do is say how bad my charts are and how much I suck? I already know I suck at PA trading; I don't need your constant reminders :confused:
 
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