Quote from yoohoo:
...I wanted to give you some time to see the answers as well as the problems. You've got to see that something has potential in order to strive for refinement and I said I wanted to give you time to be able to see the signals.
First I want to look more at signals and then much later we can look at noise and trends. Yesterday was a totally messy day on the 1 min because most of the bars overlapped each other so finding a K/R was like looking for a needle in a haystack. Every market has days like that and when you see it, it is usually time to trade trends and postions rather than look for a multitude of good reversal set-ups.
...The rule was if the 1 min is messy go bigger in TF, but I'm over simplifying it - trends need a different approach.
So after a messy day we got a great day followed by a good day that turned messy again. Remember what I said in earlier discussions - as soon as you see the 1 min turn to overlapping mess you should be alerted to the potential for it to continue like this for hours so you need to go up in TF and position trade (look for patterns). You now know what fast signals to look for - if they are not there that is screaming at you to change your style of trading quickly.
The 1 hr was beautiful - fluid up and then an engulfing reversal with a gift extreme top on the 1 min rolling over on the TF's.
This is basic stuff as you're not yet at a place to learn the fine points of aggressive trend trading when it's messy... showing different tools and techniques when you have not got up to speed on the 1 min is going to throw you off course.
But there's an easy answer: when it's a mess use your 1 hr + CCI to give you the gameplan, take your position and let time fill up the ATM. Your entry short will signal on a lower TF, be that 30 min, 15 min, 5 or as in this case the 1 min. The later messy 1 min development tells you it's probably a slide/trend so sit tight. When the 1 hr picture becomes a clear reversal short continue to sit short - it's an hourly chart so be prepared to sit tight for a few bars.
Learn guitar, chill
See the attached charts. I keep the CCI displayed like this on the 1 min because it can throw up an alert that runs real fast for 50 - 100 pips. On the 1 min I've highlighted a break from congestion and it picked the top so I am in way before the breakout. Does it work every time? Nope! Does it add to PA? Yip!
Note the 1 hr fluid up, engulf reversal down... continuation signal and then reversal up signal with CCI... then fluid up and continuation signal thru PP.
So to recap: When the signals turn to mush go up in TF and expect a slide. Take a position, look for patterns and chill out.
PS: What a beautiful close... is that a gift for Monday or what?
PPS: Didn't highlight it but WMA on hourly picked great reversal points in advance. The power of MA's to project future S&R works on all TF's although I have only demonstrated it on the 1 min. Remember one TF is just a fractal of another so just as you roll TF's you roll techniques.
