Well, higher high could mean 20 points from the previous high. We've seen a lot of these sudden spikes in ES lately. So how would you know when to get in or out?
Is It a Reversal or a Pullback?
- Thread starter schizo
- Start date
I couldn't help but chuckle seeing the two of you bicker about "buffer zone". I simply made that term up. I could have easily called it something else like "No-man's land". Now go Google if that term also comes up as well.
Actually...that's not a good term to use. One of my ex-girlfriends said that after I accidentally put it in the wrong hole. I definitely will not Google that term "No Man's Land".
I'm sorry but I think I'll let this subject matter rest. This wasn't the way I wanted to carry out the dialogue. I'll think twice before making my trading views known from now on.
I am here to learn. Please make your view known. I have read this entire mess and so far nothing has been said especially by you. all we have is arguments on definitions. how about sharing your ideas on pullbacks and reversals. I wanna learn.
no I dont trade so please dont jump all over me. I am trying to learn. I am a student of the markets working hard at it to learn. I dont trade. been there and lost. hahaha. I can no longer afford to lose. so I am not going to trade until I know some kind of minimum needed to come out ahead. or at least have the dilusion that I know enough to put on a winning trade.
Come on Schizo. do you know something I dont know. That would not be too difficult. instead of inciting riots around here why not just come out and say what you intended to say.
Some random useful concepts.
Best you can do is learn about which areas have a greater probability of reacting, that reaction may or may not be a reversal, many times they just react, then fail. On top of this pay a great deal of attention when those high probability areas that reacted, end of failing, chances of reversal highly increase after that.
To learn about the high probability areas, you on your own, that takes years to learn about them.
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Better not underestimate the usefulness of definitions... without knowing/understanding or even creating definitions (when analyzing charts), imo there will not be consistent gains
Rather than thinking in terms of pb or rev some traders use the term counter-trend. Some will even trade those CT moves when the distance to the floor is great enough rather than going flat at the ceiling. How are they doing this? Is it just fantasy or a realistic goal to strive for?
My intention wasn't to bust anyone's balls and I apologize if I came across as aloof. However, my intended target audience was intermediate to advanced traders. From where Autodidact left off, here are some more random thoughts.
1) Autodidact brought up a good point. Just where does a reversal occur? Traders become insanely sensitive at these levels. Why?
2) What about pullbacks? Before a meaningful reversal takes place, you almost always see price retest the high again. Why?
3) There seems to be more pullbacks in a major trend than in a minor trend. Why?
On a closing note, here's food for thought.
The only thing I can think of is the "law of one price" concept which you can apply when there is divergence between two short term moving averages. Market makers do step in to make price adjustment when there was an excessive volatility in prices e.g. flash clash , EURUSD on 22/Jan etc...in that case, there is less risk in trading on counter-trend...imo
schizo, it's unlikely u recall this small detail in the midst of arguing with i am nobody but he said something in the form of a question so as not to b so obvious ....something to help, which I'm not going to emphasize but I just hope someday u see it. Sorry for the off topic post. Just trying to heal the wounds and bring both of you great guys together. I won't mention it again.
Schizo,
Some annotations to your chart to stimulate conversation in a good topic thread.
The moving averages are useless and just get in the way of price, as they offer no value to price action analysis (not trying to start a debate).
Some annotations to your chart to stimulate conversation in a good topic thread.
The moving averages are useless and just get in the way of price, as they offer no value to price action analysis (not trying to start a debate).