please share your thought process when you are looking at charts

[Laissez Faire]

Such as?

For example:

The market's down 3 days in a row by Friday's Close. What happens on a Monday following such a pattern?

You can add more detail, too. What happens on a Monday following such a pattern if the market gaps up or down?

I can answer that question in a minute. I don't know how I could by simply looking at a chart.

 

[deaddog]

For example:

The market's down 3 days in a row by Friday's Close. What happens on a Monday following such a pattern?

You can add more detail, too. What happens on a Monday following such a pattern if the market gaps up or down?

I can answer that question in a minute. I don't know how I could by simply looking at a chart.

You are right. I cannot answer that question with any confidence. But show me the chart and where the price is and has been and I can make some assumptions that I can trade profitably.

What you can tell me is that x% of the time the market will do this or that. But you can't tell me for sure what will happen on Monday. Do you make your trade on friday afternoon or wait till monday morning?

 

[MrMuppet]

Isn't that just a different way to manipulate price data? Charts just make the same data visually pleasing.

I don't think either the technician or the fundamentalist can tell you where the market will be next week. All they can do is tell you where they expect it to be based on the data they have.

thats the point. I don't care where the market is going and I don't care about price. Price pays but value trades.

 

[deaddog]

thats the point. I don't care where the market is going and I don't care about price. Price pays but value trades.

The reason I look at charts is to see where price has been and is going.
I trade price momentum.
A good company is not necessarily a good stock. A stock is only a piece of paper (probably not even that anymore) not unlike a baseball card, the price is established by supply and demand.
Does it really matter what is causing the demand?

 

[Laissez Faire]

What you can tell me is that x% of the time the market will do this or that. But you can't tell me for sure what will happen on Monday. Do you make your trade on friday afternoon or wait till monday morning?

At the end of the day it's only probabilities. It's not uncommon to 'ask a question' and find that the market is more random than you'd like to think. Other times - the probabilities can get really high.

It was only meant as an example to show the limitation of a chart. If it has added value is another question. I believe it does for me.

Yesterday, I was bullish because it was the 1st trading day of November. I checked that in my DB. Positive net for the last 4 out of 5 years. 5 out of 6 as of yesterday. Other supporting parameters suggested the same. I wouldn't have had the same confidence if I was only charting the day.

 

[deaddog]

At the end of the day it's only probabilities. It's not uncommon to 'ask a question' and find that the market is more random than you'd like to think. Other times - the probabilities can get really high.

It was only meant as an example to show the limitation of a chart. If it has added value is another question. I believe it does for me.

Yesterday, I was bullish because it was the 1st trading day of November. I checked that in my DB. Positive net for the last 4 out of 5 years. 5 out of 6 as of yesterday. Other supporting parameters suggested the same. I wouldn't have had the same confidence if I was only charting the day.

Just my experience but I have found that the more information I have the more likely I am to hold on to a trade the charts are telling me to get out of.

Yesterday I was bullish because the markets are trending up.

 

[vinc]

im at a roadblock and for whatever reason cant figure out which is most likely very simple things

i look at charts and i keep entering trades at the wrong times
when i go back and analyze my trades i can see the patterns i missed and the patterns that were forming become obvious that i entered and exited trade at not very ideal time

but when im live trading i cant seem to catch the information about the chart that i need

can you guys share your thought process when you are trading please?

like for example you find a stock on the scanner you click on it to take a closer look for a potential trade
whats your process when the chart is on the screen

i feel like my process is incorrect which leads me to poor trades

so you believe that a chart / single/ has a self-predicting abilities..in other words it predicts itself..at every point except point 0 / technically not a chart / ..
so when 0 + 1 tick?? that's when it starts the process?
looking at charts for predicting direction likely will turn you into a mess ,mentally+financially/..been there..you need more then that imo

btw, I've noticed that there are market makers and there are THREAD MAKERS
or is it just an illusion? /same shit just rephrased/

 

[tiddlywinks]

So are you starting from a single last candle and then looking for confirmation with more and more candles?

If I recall, you use 1 minute bars and specifically stated one of your issues is confusion while bars are forming.

A couple of points regarding the 10 cases...
1) They just are. The 10 cases exist and are uniform across any time-based or tick-based chart. Talking about "confirmation" comes from something other than the 10 price bar cases. Stop overthinking.

2) On the cases pic you will notice some faint lines. What are those? Immediate channels? Ranges? S/R? All by themselves, the cases can provide some solid, even actionable insight, sometimes way before a bar actually closes.

3) If you have 3 bars, fully formed or not doesn't matter, there are 2 pairs of adjacent bars. If you have 4 bars, there are 3 pairs of adjacent bars, etc etc. IOW, every bar can be identified as one of the 10 price cases. And every bar is showing and telling you details of the immediate price activity.

HTH

 

[qlai]

Price pays but value trades.

Nice!

 

[MrMuppet]

Does it really matter what is causing the demand?

1. there is a fund going busto and it has to liquidate all its positions. You know its holdings from the filings
2. you have a chart

1 or 2? decide for yourself