My Wyckoff journal

It's not stupidity, just a consequence of not having really engaged the material, like the difference between watching a tennis game and playing tennis.
 
damnpenguins said:
Another one - Jan 12th 2015

I won't post too many more of these novels on my [PreMkt] thinking, but once again I thought I should show at least a few examples of where my head is at...

[PreMkt]

On the daily chart Supply had overcome Demand yesterday with a bearish close on rising Volume falling back below the daily Range Median Line ([ML]). One days action doesn't necessarily determine a change in trend etc, however it does alert one to a potential change in the market.

Moving to the Hourly chart Buyers had been either unable or unwilling to follow price above 4230. The second attempt at 30 also featured a rejected move back into the hourly Trend Channel that had tracked Buyers progress back up from the bounce off the low of the daily range on the 6th of Jan.

Down to the 15 minute chart the pre Open range had narrowed to 4205 - 4230 roughly. With Price moving higher to the 15-20 level which was both the [50%] of yesterdays Range and the [50%] level of this pre-Open Range.


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Are you looking at stops above 4230 on the 15 minute chart here?
 
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This is pure gold. Keeping this one. It's already in evernote ;)

dbphoenix said:
This is what price action trading is all about: a continuous assessment of the balance between demand and supply. It is not just entering for one reason or another and placing a 100pt stop and hoping everything works out. When written out, it seems impossibly complex. In practice, though, this is all worked out in advance: where am I going to enter, how much price risk will I assume, what will I look for to tell me that the trade isn't working, what criteria will I use to tell me whether or not to re-enter and if so where?

One reads the script and learns the lines ahead of time. When the curtain goes up, all one has to do is perform.
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I've integrated something very close to this into my trade plan.

Being prepared like this takes other considerations out of the picture that could cloud my judgement.

Douglas talks about this in the disciplined trader:

“The typical trader will do most anything to avoid creating definition and rules because he does not want to take responsibility for the results of his trading. If he knows exactly what he is going to do and under what conditions, then he would have something by which to measure his performance, thus making himself accountable to himself. This is exactly what most traders don't want to do, preferring instead to keep their relationship with the market somewhat mysterious.”
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damnpenguins said:
This is pure gold. Keeping this one. It's already in evernote ;)

I've integrated something very close to this into my trade plan.

Being prepared like this takes other considerations out of the picture that could cloud my judgement.

Douglas talks about this in the disciplined trader:
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Or to put it yet another way:

The degree to which one experiences anxiety before and during the trade is in direct inverse proportion to the amount of preparation he has done
 
dbphoenix said:
Or to put it yet another way:

The degree to which one experiences anxiety before and during the trade is in direct inverse proportion to the amount of preparation he has done
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yeah - once again I have to say I've read that a few times ;)

You know - I used to think that you meant preparation in this case as referring to the amount of observation and market characterisation one had done. Not necessarily prep for each trade.

Therefore I always assumed I simply wasn't 'getting' price action because I hadn't put enough work in.

But in reality the two are one in the same. You have to have done the observation and backtesting in order to come up with the rules and objective criteria that you will utilise on each trade.....

sound about right?
 
You may want to review the posts I and others made to gears' journal at the end of March (you were there as well) and to lajax' journal at the beginning of April. All sorts of questions one needs to ask himself in preparation for the coming session.
 
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