Quote from Willleung:
thanks a lot YH..
YH, the dotted line is the emotion line (of pain)??I haven't follow the journal from the early stage and I don't quite get that.
[Yes it is and often the Classic players get their fulfillment pullback Point 5) and the EMTL get theirs too (as in point 6, see chart).]
Agree on needing to have a sense of direction for our aggressive early entries, what about days start of going against the general trend, what do you do, YH?
failure of previous S&R zone?
Lower TF, top/bottom picking? (indictors as reference, or even volume A.K.A. JH's FTT :eek: )
[A lot of my trading is Counter-Trend Trading and it is PA & Indicator based. The PA says pull the trigger and the indicator says this has enough energy to make the trade worthwhile. It is always taken in a lower TF.]
The chart ... is just a random off Yahoo, not my market either, and doesn't have future contracts yet (SSEC of Shanghai) but after seeing it today, it raises a few questions..
Cheers, YH
Re your last chart Willl: 1st circle is a Horn Trade - a simple small double bottom buy with MACD divergence calling a buy. We covered this in detail several times somewhere in the thread - sorry I can't give a page number.
The "congestion trade" is actually a Continuation Trade - meaning you should be in and ready for more profits. Again covered several times.
2nd circle - lets look left of this first. You have a perfect channel top reversal on the 1 st top and it sold off so you know there's sellers here. When PA enters your 2nd circle MACD Histo is diverging and you get reversal candle Double Top signals. And if you were sharp the Gap Fill bounce in between these tops was your counter trend signal.
3rd circle had thick squashed PA so I know if you open out the action here you'll find reversal candles/bars with the rule buy support with a close stop - MACD failed to make a lower low with PA warning of strength - a pretty safe trade. Again after this came a continuation trade.
By the way, I have to blow up your charts to be able to read them so if you can make them bigger it would help others. As far as JH is concerned it confuses people that I can disagree and then agree with the man. Some of what he says is correct. The rest I just don't get because his communication is too complicated or it doesn't work. I told him this and that's all there is to it.
As far as using volume is concerned - just like a channel it's not always present and that is in fact a signal. Everything speaks but learning to hear is the issue.
