NQ - Supply & Demand

[eminiman414]

The only reason I went back to the lines was to adhere more with exiting more mechanically. This is in hindsight but realistically your long should have been taken as my first trade and not my second trade and instead of exiting and re-entering I should have held on instead. This is what I have been trying to work on and eliminating the lines was helping with that but then I try to come up with my own exiting "rules" and then things start to get skewed a bit. Well not skewed but basically profit less as opposed to being more mechanical w SLA if that makes sense.

The lines also help with exiting a losing trade as opposed to scratching too soon without the lines. Although after the last round of replays I might be better off without them and really focus on visualizing them in my head.

And I am not particularly fearful. I have accepted the fact that losses will happen but like you say they are information. It's really part of the process and almost helps to lose a trade (within reason)

 

[niko]

The only reason I went back to the lines was to adhere more with exiting more mechanically. This is in hindsight but realistically your long should have been taken as my first trade and not my second trade and instead of exiting and re-entering I should have held on instead. This is what I have been trying to work on and eliminating the lines was helping with that but then I try to come up with my own exiting "rules" and then things start to get skewed a bit. Well not skewed but basically profit less as opposed to being more mechanical w SLA if that makes sense.

The lines also help with exiting a losing trade as opposed to scratching too soon without the lines. Although after the last round of replays I might be better off without them and really focus on visualizing them in my head.

And I am not particularly fearful. I have accepted the fact that losses will happen but like you say they are information. It's really part of the process and almost helps to lose a trade (within reason)

Given what you have been writting the lines can be making more harm than good, if you are sensitive to price movement it is better to focus on that.

 

[eminiman414]

Given what you have been writting the lines can be making more harm than good, if you are sensitive to price movement it is better to focus on that.

Yes I suppose you are right. One thing that's kind of bugging me I guess you can say now and not to be hell bent on lines bc whether I draw them or not I am still going to visualize them, but the action around 9:52 or so to 9:56 I don't really see how a supply line can be drawn because if a line is drawn and broken the focus shifts to a long. However if price doesn't break the swing you really should still be looking short since the DL was broken before that however placing that supply line I feel gets almost too line happy and its like ok the supply line broke but there was no retracement to really draw the line. So it's like ok well i'm looking long now when I should still be looking short if that makes sense lolol. I thought a line could be drawn after the retracement. If there is no retracement how can a line be drawn? Or is it the definition of what a retracement is really the issue. Like those parabolic moves do have retracements even though a "bar" may not print as a retracement. The goal is to be as successful as possible with this approach. I love it but there are a few things that just get me sometimes. The action described above is one of them.

 

[niko]

Yes I suppose you are right. One thing that's kind of bugging me I guess you can say now and not to be hell bent on lines bc whether I draw them or not I am still going to visualize them, but the action around 9:52 or so to 9:56 I don't really see how a supply line can be drawn because if a line is drawn and broken the focus shifts to a long. However if price doesn't break the swing you really should still be looking short since the DL was broken before that however placing that supply line I feel gets almost too line happy and its like ok the supply line broke but there was no retracement to really draw the line. So it's like ok well i'm looking long now when I should still be looking short if that makes sense lolol. I thought a line could be drawn after the retracement. If there is no retracement how can a line be drawn? Or is it the definition of what a retracement is really the issue. Like those parabolic moves do have retracements even though a "bar" may not print as a retracement. The goal is to be as successful as possible with this approach. I love it but there are a few things that just get me sometimes. The action described above is one of them.

Try this: Define a RET in the 1 min chart.

 

[eminiman414]

Try this: Define a RET in the 1 min chart.

Essentially I have that's why I didn't draw a supply line and took the third trade as a retracement.

 

[dbphoenix]

Once the DL is broken and you have two successive lower highs, a supply line can be drawn.

If you don't want to get into micro trading, you're going to have to back off. If you must have tight lines for some reason and you don't want to use the last swing low as an exit trigger, then plot your prices using a 2m chart. Or 3m. Or 5m. These breaks that you see will not likely even show up on a larger bar interval. Once you see that, you will likely be more tolerant of "breaks" on the 1m.

Keep in mind also that the examples I provided in the SLA pdf used an hourly interval. The interval itself is irrelevant. Yesterday, for example, one 1m trader had 14 trades. I, using a 5m chart, had one.

 

[niko]

Essentially I have that's why I didn't draw a supply line and took the third trade as a retracement.

That´s not what I meant. Define it, write down how a RET looks in RT when you are watching a 1 min chart.

 

[eminiman414]

Thank you gentlemen for the help. Much appreciated as always. Can't wait to get the heck out of this office n start my replay lol.

 

[eminiman414]

One trade today breakeven so not even going to bother posting the chart. What I will do is post a series of 5 charts displaying a certain type of action that I don't want to say I struggle with, but I feel what I am seeing is different than what the SLA might say. I'd be curious to see what others have to say or what they are thinking when this type of behavior arises. So if anyone wants to take a shot at it be my guest. Let me know your thoughts.

The right side of the chart.

 

[eminiman414]

I suppose I'll go first....

Chart 1: In my mind I'm still thinking long. We've basically matched the previous down move. Price has only come back about halfway, and although we may be near the top of the range I'm still thinking long. As per DBs posts in this thread based on the lines I should be thinking short due to the fact a demand line can be drawn on the up move from 935-40 and it is broken. Again this is if I understood him correctly. That sets in a bit of confusion in my mind.

Chart 2: Now I am looking to see how far we travel up. Is this the retracement that we would then short since the DL was broken, or was halfway a sign of strength and we are going to continue up. I don't believe a SL could be drawn from the top to the previous 1min bar since we haven't had 2 successive lower highs after the break of the DL, if there was one.

Chart 3: Hmmm was long the correct thinking or is this still the retracement?

Chart 4: Since the low near the halfway point we have now had 3 higher highs and higher lows, my initial long thought seems to be validating itself although the time it is taking to climb back up is increasing. Could a DL now be drawn although the swing high has not been broken?

Chart 5: Is this a retracement we could take long. If a supply line could have been drawn where price moved to 50%ish, then we would have had a break and now a retracement. Or is all of this just cooling off near the top of the range and a reversal likely to set in.

Obviously there is much indecision in my words and instead of forcing the issue I stood aside and watched at that moment since I was unsure.

While going through the last round of observation I eliminated all of the lines completely and focused on all swing highs and lows, major ones and the minute ones, and their halfway points. Looking for signs of strength and weakness as well as watching the behavior of the ticker at those points, on the tests and breaks. I looked at retracements of all kinds in relation to these signs strength and weakness as well as retracements after "strong" moves in a given direction. It was a gigantic help because really I was focused on the numbers (price) and how it was moving to and from other prices, however in terms of entering and exiting I just was not sure how to do so necessarily. SLA has been great with that however the little twists with the drawing of the lines has created a tiny bit of confusion. Drawing them the way I was, was working out, but as DB pointed out I did catch a little luck I suppose. If one was to trade mechanically I think those little pointers need to be known and I really had no idea. I don't recall ever reading that anywhere in the threads, but there's so much great info maybe I missed it. I just don't want to miss anything because of lack of all of the SLA knowledge if that makes sense.