"monoid, post: 4094680, member: 486535"
I had to think about how to answer your question(s), for any direct answer I give will definitely be lost in translation, for we lack a common framework to communicate our ideas without the risk of misinterpretation. So, the best I can do is to communicate my answer by way of a thought experiment.
Imagine a world where everyone has very poor vision -- people can barely see things next to them. The only way they can navigate is by touch -- touch an object and try to determine what it is. As you can imagine, a person living in that world can never be sure what an object really looks like but might have a rough idea based on its shape as determined by touch.
Now imagine a sub-group having access to corrective eye-glasses. This group can not only see the objects clearly but can also see the object's surrounding environment.
Now, people from this world really like apples (an object). They would do anything to eat an apple. The only problem is that many of the apples also have poisonous snakes next to them. As you can only imagine, people without corrective lenses will more likely than not be bit by a snake more than they succeed in getting an apple. This on top of trying to find an apple given their poor eye-sight!
On the other hand, the sub-group with corrective lenses can be more selective in picking the apple 'cos they can also see the snake next to it. So, this group might end up getting more apples than snake bites.
In this thought experiment, the world is analogous to the market; the corrective eye-glasses is the framework a trader needs to 'see' the market; the surrounding environment is the context; and, the objects are trade setups.
You asked me a question on 'objects', asking me how the price action is around it, and what I look for. I cannot explain that to you without you understanding my framework (corrective eye-glasses), and the way I interpret my context (surrounding environment). Even if I tell you the price action, it will not make sense to you. Having said this let me attempt the answer:
I don't look for demand, for I don't know how demand looks like. I don't trade at the [key] price level 'cos that is not consistent with my understanding of price action I have gleaned using my framework. So where and how do I take the trade? I let price play out and then step up. The words play out can only be explained with reference to my framework. Now, you can see the difficulty of explaining today's trade to you. The only thing I can assure you is that none of this is subjective. Every single step in my process is objective.
I want to continue with the thought experiment to explain one more opinion of mine before ending.
Imagine that the people in our 'thought experiment' world have access to a ruler. Using that they can exactly measure the distance between the snake and the apple. What use is the ruler to the group that does not have access to corrective lenses? I am sure you will concur with me in saying that the ruler is of no use -- for, this group can barely see; they can't even be sure if an apple is indeed an apple, and most likely they can't see the snake.
What use is the ruler to the group having access to corrective lenses? I would contend that the ruler is not of much use 'cos human judgement (of distance) alone is enough to protect the people in this group from getting bit by the snake. They do not need a ruler to measure the exact distance between the snake and the apple.
The ruler is risk-to-reward ratio. Be wary of using it if you don't have corrective lenses to clearly see the market! And, if you have the corrective lenses, you will not need a ruler!
All the best.
Regards,
Monoid.
I had to think about how to answer your question(s), for any direct answer I give will definitely be lost in translation, for we lack a common framework to communicate our ideas without the risk of misinterpretation. So, the best I can do is to communicate my answer by way of a thought experiment.
Imagine a world where everyone has very poor vision -- people can barely see things next to them. The only way they can navigate is by touch -- touch an object and try to determine what it is. As you can imagine, a person living in that world can never be sure what an object really looks like but might have a rough idea based on its shape as determined by touch.
Now imagine a sub-group having access to corrective eye-glasses. This group can not only see the objects clearly but can also see the object's surrounding environment.
Now, people from this world really like apples (an object). They would do anything to eat an apple. The only problem is that many of the apples also have poisonous snakes next to them. As you can only imagine, people without corrective lenses will more likely than not be bit by a snake more than they succeed in getting an apple. This on top of trying to find an apple given their poor eye-sight!
On the other hand, the sub-group with corrective lenses can be more selective in picking the apple 'cos they can also see the snake next to it. So, this group might end up getting more apples than snake bites.
In this thought experiment, the world is analogous to the market; the corrective eye-glasses is the framework a trader needs to 'see' the market; the surrounding environment is the context; and, the objects are trade setups.
You asked me a question on 'objects', asking me how the price action is around it, and what I look for. I cannot explain that to you without you understanding my framework (corrective eye-glasses), and the way I interpret my context (surrounding environment). Even if I tell you the price action, it will not make sense to you. Having said this let me attempt the answer:
I don't look for demand, for I don't know how demand looks like. I don't trade at the [key] price level 'cos that is not consistent with my understanding of price action I have gleaned using my framework. So where and how do I take the trade? I let price play out and then step up. The words play out can only be explained with reference to my framework. Now, you can see the difficulty of explaining today's trade to you. The only thing I can assure you is that none of this is subjective. Every single step in my process is objective.
I want to continue with the thought experiment to explain one more opinion of mine before ending.
Imagine that the people in our 'thought experiment' world have access to a ruler. Using that they can exactly measure the distance between the snake and the apple. What use is the ruler to the group that does not have access to corrective lenses? I am sure you will concur with me in saying that the ruler is of no use -- for, this group can barely see; they can't even be sure if an apple is indeed an apple, and most likely they can't see the snake.
What use is the ruler to the group having access to corrective lenses? I would contend that the ruler is not of much use 'cos human judgement (of distance) alone is enough to protect the people in this group from getting bit by the snake. They do not need a ruler to measure the exact distance between the snake and the apple.
The ruler is risk-to-reward ratio. Be wary of using it if you don't have corrective lenses to clearly see the market! And, if you have the corrective lenses, you will not need a ruler!
All the best.
Regards,
Monoid.
)
