Price Action Journal V1.5
- Thread starter TraderKaizen
- Start date
JW: I apreciate your efforts in trying to get the code working exactly as it should.
Please check chart 16a posted earlier in this thread. When your NT code matches those litlle triangles is when you have the correct code.
As I understand it, a 3BR can complete in several different ways depending if there are inside bars or not after bar 2, 3, etc. The markers on chart 16a MARK THE BAR on which the 3BR signal COMPLETES, not the pivot.
I hope I made some sense, and thanks again for your efforts.
Shakira
I'm going to try a step by step rational post-mortem of what goes on in Anekdoten's mind when analyzing in realtime. I'm going to use step by step his words describing the late reversal last friday.
This is a post-mortem analysis made with the help of hindsight, but it helped me "get it". Now it'll be just practice and screen time (experience) to "get it in realtime", for which there is no substitute.
From another thread:
"The sell off occurred because price got to a key resistance point and found no demand, in fact, a very obvious classic reversal formation formed at this point with optimal volume divergence.
No reason to find the why, it can be anything, or many things, does it matter ?, but price is the truth and that never lies, too much supply, no demand, down we went.
These are special times and one thing is certain this is first and foremost a trader's market.
Anek"
1-"The sell off occurred because price got to a key resistance point".
This is marked on the chart attached below. Tuesday's high within a few ticks. LEVEL 1.
2-"and found no demand, in fact, a very obvious classic reversal formation formed at this point".
This is a classical 123 top (see Trader Vic), or modified double top, can also be seen as a Gartley with an abc inside the 123. A reversal pattern. I have manually marked the 3BRs in pink for sells and aqua for buys. The 3BR completes at when bar 4 surpasses the aqua bar high or the pink bar low. (I have painted manually the 3BRs as I understand them. I may be wrong, but I believe I'm mostly correct doing this post mortem. In realtime things are faster. Not there yet.)
I have attached a chart in the next post. LEVEL 2.
3-"with optimal volume divergence."
Still working on this one, but the way I see it, after the high at LEVEL 1 was made and the reversal pattern was developing, in a microscope chart, the pushes up were decaying in volume (no demand), and eventually supply (volume on the downside) took over.
LEVEL 3. I attached a 5 second chart in a post below.
Learning to read all this in realtime, while inputting orders, stops, etc, and managing the position is quite a task. But that's the path.
Good luck everyone...And I'm still awaiting the NT codes that paint the 3BRs automatically...
Have a good weekend.
shakira
This is a post-mortem analysis made with the help of hindsight, but it helped me "get it". Now it'll be just practice and screen time (experience) to "get it in realtime", for which there is no substitute.
From another thread:
"The sell off occurred because price got to a key resistance point and found no demand, in fact, a very obvious classic reversal formation formed at this point with optimal volume divergence.
No reason to find the why, it can be anything, or many things, does it matter ?, but price is the truth and that never lies, too much supply, no demand, down we went.
These are special times and one thing is certain this is first and foremost a trader's market.
Anek"
1-"The sell off occurred because price got to a key resistance point".
This is marked on the chart attached below. Tuesday's high within a few ticks. LEVEL 1.
2-"and found no demand, in fact, a very obvious classic reversal formation formed at this point".
This is a classical 123 top (see Trader Vic), or modified double top, can also be seen as a Gartley with an abc inside the 123. A reversal pattern. I have manually marked the 3BRs in pink for sells and aqua for buys. The 3BR completes at when bar 4 surpasses the aqua bar high or the pink bar low. (I have painted manually the 3BRs as I understand them. I may be wrong, but I believe I'm mostly correct doing this post mortem. In realtime things are faster. Not there yet.)
I have attached a chart in the next post. LEVEL 2.
3-"with optimal volume divergence."
Still working on this one, but the way I see it, after the high at LEVEL 1 was made and the reversal pattern was developing, in a microscope chart, the pushes up were decaying in volume (no demand), and eventually supply (volume on the downside) took over.
LEVEL 3. I attached a 5 second chart in a post below.
Learning to read all this in realtime, while inputting orders, stops, etc, and managing the position is quite a task. But that's the path.
Good luck everyone...And I'm still awaiting the NT codes that paint the 3BRs automatically...
Have a good weekend.
shakira
Excellent work, Shakira!
The only small addition I would make is that there was a significant up trend line (UTL) running along those pivot lows leading into the HOD. Although Anek didn't mention trend lines in this specific postmortem analysis, he does use them.
If you wanted extra insurance on the short entry, you could wait for the downside follow-through on that last 3BR that you marked to break below that UTL, then go short on the pullback up to the underside of that UTL.
That break of that 907-908 area also had the additional confluence of containing both the morning's high (regular trading hours) and yesterday's close, so a downside break of that area was signficant.
The only small addition I would make is that there was a significant up trend line (UTL) running along those pivot lows leading into the HOD. Although Anek didn't mention trend lines in this specific postmortem analysis, he does use them.
If you wanted extra insurance on the short entry, you could wait for the downside follow-through on that last 3BR that you marked to break below that UTL, then go short on the pullback up to the underside of that UTL.
That break of that 907-908 area also had the additional confluence of containing both the morning's high (regular trading hours) and yesterday's close, so a downside break of that area was signficant.
Hi Shakria,
I looked over the charts really carefully and there seems to be several different things going on on that chart...
First, the easy thing to fix to mark the bar of magic tick instead of the pivot bar. That's easy.
But there's a couple of other markers I that I don't know the logic of... If anyone is smart enough to reply with the logic, I can get it coded...
I've marked the markers that need new logic for...
The purple ones are none-standard 3br. The blue ones looks as if its a piscuy box breakout.
If anyone know the formula for 3br with inside bar, please let me know too.
Thanks
JW