PA "Setups"

Status
Not open for further replies.
aud.JPG Is this a long or a short here?
If neither, where should the orders be placed?
 
I realize that the only people who are going to see these are insomniacs, dairy farmers, and Europeans, but we don't want to be accused of hindsight, now do we?

upload_2015-5-20_6-36-15.png


The primary way I've learned to trade is to study market behavior and build an understanding of it. If you're not distracting yourself from that goal, over time the mind will start to build an rough, intuitive grasp of basic market characteristics. At the same time, we can work consciously to find parameters to define what we think we know and test them to see if they are consistent with the reality.

After enough time, one can build a model of certain market behavior, and then create a system or routine by which to partner with the market and be on the right side of it.

I have a conception of what I understand a trend to be. I have a conception of what they do when they are ending, and at those points in time I can trade in the direction of the sentiment of the next trend. I compare what I see unfolding before me to what I anticipate things will do if my hypothesis is correct. If there is inconsistency between the two, I will exit. If there is consistency, I continue to hold the trade as the market goes through the sequences I expect.

--llIHeroic
 
Last edited:
dbphoenix said:
And before this particular setup resolves itself, those who've followed my threads know how important context is to me. So . . .

View attachment 152910

View attachment 152911

And while my use of freely-available online charting is a subject of great hilarity amongst the trolls, those who've followed me through my journals understand that I use this one and stockcharts and bigcharts to demonstrate to the beginner that there is a lot available for him to play with at no cost while he's trying to decide whether or not he wants to pursue trading. And if he is intrigued enough to move away from static charts toward something that moves, the NinjaTrader platform is free if one wants nothing more than replay. All they require is an email address of some sort.

And for those who are familiar with mean reversion:

View attachment 152912

TMI?

Looking at a chart on which no trendlines of any sort have been drawn is sort of like the burglary movies where the guy is trying to steal the big diamond that's sitting on a big pedestal in the middle of the room. He knows that there is an alarm which is triggered by the interruption of one or more of a series of laser beams which criss-cross the room. Unfortunately, he doesn't know where those laser beams are because they're invisible to the naked eye. So what does he do? He blows smoke into the room so that the beams become visible. Knowing where they are enables him to miss them and avoid setting off the alarm. Similarly, there are a variety of trendlines on your chart, even though you may not be able to see them. Blowing smoke on your chart will be of no help, however, so you'll have to be satisfied with a less-dramatic straightedge and pencil.

--Db
More...
Those charts show a shortening of thrusts, so if I were to go long, it'd be for a quick scalp.
 
Status
Not open for further replies.
Back
Top