I now have what I think to be a consistent way to both identify direction of trend and assessing its ability to RET multiple times without reversing. Yesssss
I also think I have identified the most common characteristics of RETs before and while they occur.
Next I'm going to study reversals. Hopefully this will help with a couple different things. First, If I can identify some reoccurring traits of reversals I can differentiate them from RETs, which is obviously important. But also to one day help with actually trading reversals/breakouts, and maybe even one day trading them both at the same time . But for now I'm going to study them with the main goal of avoiding them.
My whole scheme is to study different aspects of PA one at a time. Eventually I can start to piece them together and develop a strategy that covers more time and more market conditions. As it is now with this particular strategy, I usually will find the setup I'm looking for 1 or 2 times per day, but sometimes It doesnt show up at all and rarer still it doesnt show up for 2 days at a time. But thats ok because I'm only trading one strategy. Like I said, whenever I can (assuming I make it out of this stage alive) trade this strategy I will be able to focus on other aspects, eventually stringing them all together to have a very good understanding of PA.
I can't understand why people try to grasp it all at one time. For me, its not possible. Just trying to comprehend RETs and the common factors in them boggle my mind, I can't imagine trying to predict breakouts, springboards, etc
Next I will have to determine an entry/exit strategy, which I know is going to be rough. I plan on using multiple time frames for this, along with scaling in and out, and other ways of hedging risk while maximizing profits. At least thats where I'm going to start. This is where I will determine my stop strategy, including trailing stops etc.
The method is coming a log, one slow step at a time. I guess thats why its called a method, it's created methodically.
