ProfLogic's Method

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Quote from bridenour:

Ok, that explains it. I was wondering all day how you managed to ride moves for extended periods given the frequent oscillations that occur. Anyway, understood now that its only relevant with a PPF.


However, one point I'm still missing is the divergence/convergence aspect. I reread the rules on 10 and searched the forums, but can't find what you are referring to with "divergence/convergence." I'm assuming its a histo oscillation on the trading chart, but what is it being considered in relation to?

I can only find it referred to as a "divergent/convergent oscillation", but not quite sure what it is referring to.

thanks in advance...

thanks
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Any oscillation where Divergence/Convergence is present is a reason to EXIT a trade but NEVER a reason to ENTER a trade by itself.

Better!!:D :D
 
Quote from mephistoII:

Here's the better example I was referring to in my previous edit comment ... I'm sure you realize these can take a while to develop, and only serve to provide a larger perspective wrt subsequent price direction.
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Great examples. It's important to note that Divergence/Convergence exists between Price and ERG and Price and Histogram.
 
I'm still a student and therefore I post this question at the risk of being spanked by Prof . . .

I've noticed that on many occassions when you have a trade PPF trade towards a breach (classic perfect trade) and then price fails to breach previous Breach and instead makes another PPF, it goes on to make a breach in the other direction . . .

For example on the 2401 this morning we had a PPF HL 792.25 trade towards Breach HH 801.50 (around 9:45am) then we get a PPF LH 796 . . . Price reverses to make a Breach LL 784.25 . . . maybe not the best example as the 16807 ERG and histo were both red . . .

Wanted to know thoughts on whether the above could be in the bag of tricks with this method . . .
 
Quote from Insearch:

I'm still a student and therefore I post this question at the risk of being spanked by Prof . . .

I've noticed that on many occassions when you have a trade PPF trade towards a breach (classic perfect trade) and then price fails to breach previous Breach and instead makes another PPF, it goes on to make a breach in the other direction . . .

For example on the 2401 this morning we had a PPF HL 792.25 trade towards Breach HH 801.50 (around 9:45am) then we get a PPF LH 796 . . . Price reverses to make a Breach LL 784.25 . . . maybe not the best example as the 16807 ERG and histo were both red . . .

Wanted to know thoughts on whether the above could be in the bag of tricks with this method . . .
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That case falls under "trading consolidations", and is trickier, requires more experience with reading price, and skilled execution to bring home the bacon.

Another opinion from the same ass (me).

JW
 
Quote from Insearch:

I'm still a student and therefore I post this question at the risk of being spanked by Prof . . .

I've noticed that on many occassions when you have a trade PPF trade towards a breach (classic perfect trade) and then price fails to breach previous Breach and instead makes another PPF, it goes on to make a breach in the other direction . . .

For example on the 2401 this morning we had a PPF HL 792.25 trade towards Breach HH 801.50 (around 9:45am) then we get a PPF LH 796 . . . Price reverses to make a Breach LL 784.25 . . . maybe not the best example as the 16807 ERG and histo were both red . . .

Wanted to know thoughts on whether the above could be in the bag of tricks with this method . . .
More...

First of all, the reputation I have gotten for being hard on students is deserved. I do not deny that. I feel that if someone wants to learn something then they had better ask a lot of questions and listen to the responses. If they don't understand the answer . . . ask it again and again and again until they get an answer they can understand. I get frustrated when individuals take things in their own hands, make mistakes based on their own assumptions and then blame me for the outcomes. Price moves objectively . . . watch and let IT teach you to trade it. I never get frustrated with people that focus, ask questions, are determined to learn and are diligent in their screen time.

The second most asked question has to do with patience. Everyone wants every trade to end up perfectly. If it starts out perfectly, then they expect it MUST end perfectly. Well sorry to burst bubbles but it doesn't work that way. Price can and does consolidate when we enter positions. We must learn what price does 100% of the time to show us that consolidation is taking place so we can exit immediately during consolidation with, at worst, a small loss.

Personally I want everyone to know that every time I trade and I make the decision to enter a trade that I want my decision to be correct 100% of the time. Will it be profitable 100% of the time . . . no way. This is why I show you to only take Perfect set ups. If you only take Perfect set ups then your profit potential goes through the roof and your risk is always minimal. If you add the Perfect set up along with being in the direction of the specific trend of that particular chart, your efficiency will improve again. This takes screen time though. A trader's typical stance is that, "Well, I'm sitting here so by damned I'm going to trade whether there is a good reason or not". My rationale is exactly opposite. I'm sitting in from of my screen trading to make money, if something isn't setting up perfectly and isn't EXACTLY what I want . . . I don't trade.

I am the best damn cherry picker in da business . . . :D :D

Hope this helps.
 
Yes, I was told by a futures trader that trading is like fishing, you are waiting for the fish to come to you.

You don't want to jump out of the boat and swim to the fishes, or they will eat you alive.

Quote from ProfLogic:

First of all, the reputation I have gotten for being hard on students is deserved. I do not deny that. I feel that if someone wants to learn something then they had better ask a lot of questions and listen to the responses. If they don't understand the answer . . . ask it again and again and again until they get an answer they can understand. I get frustrated when individuals take things in their own hands, make mistakes based on their own assumptions and then blame me for the outcomes. Price moves objectively . . . watch and let IT teach you to trade it. I never get frustrated with people that focus, ask questions, are determined to learn and are diligent in their screen time.

The second most asked question has to do with patience. Everyone wants every trade to end up perfectly. If it starts out perfectly, then they expect it MUST end perfectly. Well sorry to burst bubbles but it doesn't work that way. Price can and does consolidate when we enter positions. We must learn what price does 100% of the time to show us that consolidation is taking place so we can exit immediately during consolidation with, at worst, a small loss.

Personally I want everyone to know that every time I trade and I make the decision to enter a trade that I want my decision to be correct 100% of the time. Will it be profitable 100% of the time . . . no way. This is why I show you to only take Perfect set ups. If you only take Perfect set ups then your profit potential goes through the roof and your risk is always minimal. If you add the Perfect set up along with being in the direction of the specific trend of that particular chart, your efficiency will improve again. This takes screen time though. A trader's typical stance is that, "Well, I'm sitting here so by damned I'm going to trade whether there is a good reason or not". My rationale is exactly opposite. I'm sitting in from of my screen trading to make money, if something isn't setting up perfectly and isn't EXACTLY what I want . . . I don't trade.

I am the best damn cherry picker in da business . . . :D :D

Hope this helps.
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