ProfLogic's Method

[ProfLogic]

Quote from Wi!s0n:

Prof waited until the 2401 histo turned black, then looked for a pf to enter. Although I can't speak for him, it is obvious to me he is pointing to the pf, not the confirmation bar where he entered. My previous posts showed a confirmation bar below the HL with a subsequent entry. Your orange square was a pf but but not THE pf. Again, you are shorting when the market is making higher highs. Where Prof and I short, the market is clearly making lower lows and lower highs (pf).
Below is the way I understand pf's, the more important lesson is when to use them. Since Prof's image is now public I suppose, this is the one I have on my office wall.

Your's is prettier than mine . . . :eek:

Well done.

 

[ProfLogic]

Quote from Whisky:

Thanks Wilson. But now I'm really confused. How can we see such different things?. Look at this pic.

I insist so much, because I want to tell a computer what to "see".

JW

JW . . . each step must be following in sequence. Until each step is completed, you can not move on to the next step. If the step you are currently on reverses befor the next step triggers, the original step starts over again.

How do you think a computer reads it.

If this, then this.....

 

[ProfLogic]

Family time.
My son is the priority now.
Talk to you all tomorrow.

 

[TradingGuy]

it is obvious to me he is pointing to the pf

This is key, looking at that arrow as pointing to the PF makes sense. As an entry, I don't see it as per the rules and that is how I first looked at it.

The arrow points to a LH, if you are waiting for weakness as described by the rules the entry would be just as price passes the last LL, as shown in the diagram posted above.

Please clarify if this is not correct.

TG

 

[Insearch]

Quote from ProfLogic:

Because you had to wait for the Histogram on the 2401 to oscillate.

also, and someone please confirm . . . assuming the 2401 histo had oscillated (turned black) by then . . .

. . . the HH (in Whisky's chart) was made after the L being referenced and the L is thus negated . . . you have to wait for another LH/LL combination on the 343 . . . and then enter on confirmation of that failure . . . ie when the "new" LL is broken

 

[Wi!s0n]

Quote from TradingGuy:

This is key, looking at that arrow as pointing to the PF makes sense. As an entry, I don't see it as per the rules and that is how I first looked at it.

The arrow points to a LH, if you are waiting for weakness as described by the rules the entry would be just as price passes the last LL, as shown in the diagram posted above.

Please clarify if this is not correct.

TG

It is not the entry, it marks the pf as that was the question I believe.
Ask yourself what happens when the 2401 histo turns black. We are trading price action so where is price at that time. Waiting for the histo to turn black is a safe trade, otherwise you risk an early entry like the one I showed. The weakness I referred to, my words not Bill's, is when price is failing to make higher highs. Now if you can answer the first question you will know why Bill says wait for the safe trade.
(The histo turns black with a breach of the last HL.)
The pf is basically a failed a-b-c with the entry on the close of the bar that breaches the b, or the open of the next bar.

 

[Wi!s0n]

Quote from Insearch:

also, and someone please confirm . . . assuming the 2401 histo had oscillated (turned black) by then . . .

. . . the HH (in Whisky's chart) was made after the L being referenced and the L is thus negated . . . you have to wait for another LH/LL combination on the 343 . . . and then enter on confirmation of that failure . . . ie when the "new" LL is broken

I apologize if I sound condescending as that is not my intention. The sequence is quite clear as layed out. You must test it yourself. To me the exit is much more difficult to understand until I re-worded and tested it for myself.

 

[TradingGuy]

It is not the entry, it marks the pf as that was the question I believe.

Exactly. I agree, it's just that I didn’t look at it that way at first, perhaps I looked at the chart out of context, but I initially thought it was marking an entry bar.

Thanks for clarifying.

TG

 

[Insearch]

Quote from Wi!s0n:

I apologize if I sound condescending as that is not my intention. The sequence is quite clear as layed out. You must test it yourself. To me the exit is much more difficult to understand until I re-worded and tested it for myself.

Not at all Wi!son . . . I've learned more in 1mth with screen time than I did trying to understand the method for 7-8mths after work . . .

My question is not about the sequence, I think I understand it, maybe not as well as you, but I believe I have it . . . Correct me if I'm wrong . . . the hypothetical sequence I was alluding to could occur, no?

Also, you didn't answer the main point of my query . . . that is . . . Whisky's chart shows a HH after an L he is referencing . . . that L is negated because of the HH and hence the need to look for a new LH/LL sequence in order to confirm the price failure . . .

 

[Wi!s0n]

Quote from Insearch:

Not at all Wi!son . . . I've learned more in 1mth with screen time than I did trying to understand the method for 7-8mths after work . . .

My question is not about the sequence, I think I understand it, maybe not as well as you, but I believe I have it . . . Correct me if I'm wrong . . . the hypothetical sequence I was alluding to could occur, no?

Also, you didn't answer the main point of my query . . . that is . . . Whisky's chart shows a HH after an L he is referencing . . . that L is negated because of the HH and hence the need to look for a new LH/LL sequence in order to confirm the price failure . . .

If that last line was a question, then yes and no. Read my comments to Trading guy. I disagree with his interpretation of the entry. I believe the confirmation bar is the bar that breaches the LL labeled on his chart. The entry is on the close of that bar or the open of the next bar.
With repect to Whiskey, his chart imo is correctly labeled but incomplete for the bigger picture. There is a LL before the L marked that is more important, also the 343 will usually but not always give you a divergence. If you take the early entries you have to take the heat/losses. Hey the bottom line is his stop would not have been hit.
Now ask yourself where is the safest entry after the market turns. The answer should be obvious.