Quest for Growth

[a drop of water]

Will it reach E before lower than the bottom of D or A ?

Here up to now price did not go below A afterwards; if price dropped below A reaching stop price, need to be prepared to re-enter long if entry opportunity appears again. Re-entering is very challenging in general, therefore a good choice is to use automatic entry or lots of mental rehearsal should help.

A highly relevant and important question i have been thinking is what to do if market shows direction is wrong after entry? that is, under what condition reverse the trade?

 

[maxinger]

Will it reach E before lower than the bottom of D or A ?

Here up to now price did not go below A afterwards; if price dropped below A reaching stop price, need to be prepared to re-enter long if entry opportunity appears again. Re-entering is very challenging in general, therefore a good choice is to use automatic entry or lots of mental rehearsal should help.

A highly relevant and important question i have been thinking is what to do if market shows direction is wrong after entry? that is, under what condition reverse the trade?

View attachment 245361



View attachment 245358

Hello DROP.


If I see such a chart, I'd stay far far away from it.

notice that the movement before 1500 hr was rather
messy / undecisive.

The drop at round 1700 hr was very tiny.

In fact, the drop started at around 1200 hours.
You'd want to catch that drop.
But then as I have said, the chart was messy / chaotic.

 

[a drop of water]

Hello DROP.


If I see such a chart, I'd stay far far away from it.

notice that the movement before 1500 hr was rather
messy / undecisive.

The drop at round 1700 hr was very tiny.

In fact, the drop started at around 1200 hours.
You'd want to catch that drop.
But then as I have said, the chart was messy / chaotic.

I was trying to long the range bottom. So undecisive drop would be good for long, right?

If possible , may you please show a chart with one of your trade? thank you.

 

[maxinger]

I was trying to long the range bottom. So undecisive drop would be good for long, right?

If possible , may you please show a chart with one of your trade? thank you.

Here it goes.
I just did my Hangseng trade.
My charts are very plain
(just candlesticks and perhaps zig zag line).


Your posting #11.
Shall we take the reversal UP signal?
If the DROP is significant, I'd take the reversal up signal.
I'd take it with a reduced quantity
provided I have profited sufficiently from the DROP.

If I didn't manage to profit from the DROP,
I would stay far far away from this chart.

 

[a drop of water]

View attachment 245363
Here it goes.
I just did my Hangseng trade.
My charts are very plain
(just candlesticks and perhaps zig zag line).


Your posting #11.
Shall we take the reversal UP signal?
If the DROP is significant, I'd take the reversal up signal.
I'd take it with a reduced quantity
provided I have profited sufficiently from the DROP.

If I didn't manage to profit from the DROP,
I would stay far far away from this chart.

Thank you very much for your sharing. Excellent trades. You trade strong clean legs, right? Do you mind to describe how you exit your two trades on the chart?

"If I didn't manage to profit from the DROP, I would stay far far away from this chart " Great advice.

 

[a drop of water]

For completeness and learning the price action purpose, i am continuing post 11. I do agree with maxinger better to trade clean chart.

1. if choosing the exact price at the end of that line E as the target, it was reached at gold arrow.
2. if choosing a price band around E as the target band, it was reached at red arrow, suppose the band is including that bar and the stop price is 2+ ticks below A.

Conclusion: deciding a target is both an art and a science. An interesting observation: the same thought process can be applied at A'. The market is showing the similar pattern consistently; it requires consistently analyzing and trading the market! Note: the chart at post 11 is 5m, here it is 15m; The left very strong up channel supports to long at range market bottom.

 

[a drop of water]

Same thought process at A' (using 2000 volume chart):

Entry can be one of the following three when at A' thinking with big probability a range market:
1. submit a limit entry using the price of A.
2. submit a stop entry long using a bull bar's high
3. submit a market long entry at the close of a bull bar.

Target: draw parallel lines.

 

[a drop of water]

Chart: 5000 volume:
Exit at red arrow if using a suitable target band and at gold arrow if using the price at E.

How about doing the same thing at A1 and A2, if using the gold line as the suitable range bottom? Cases would be:
1. If using price at A - 2 ticks as the forever stop, it will reach the targets E1 and E2 respectively.
2. If using price at A1/A2 - 2ticks as the forever stops, it will be stopped out.
3. Using the 3 trials entry rule, then re-enter at A'. could double the size; target reached.

 

[a drop of water]

Chart: 2000 volume

If we have used the same simple thought process to the following chart:
1. A1. entry not triggered.
2. A2. being stopped out.
3. A3. working so far. if using gold box as PB after BO, reached the target band E3.


To keep things simple and consistent, use the following rules:
1. draw those range bottom dash lines after As. At A1, seeing three bottom tails, draw gold dash line;
2. use the stop entry at price 1 tick above a bull bar's high, at A1, the stop entry not triggered.
3. always use min( the dash line - 2ticks, the lowest tail at As -2ticks) for fixed long stop.
4. try the third time if previous two are not working and PA still allows the same thought process.

 

[a drop of water]

Chart: 2000 Volume

Update for the case using the blue box as pull back: the current high is 3672.75. ABC target is 3677.25. Will the market reach the target? Let's wait patiently.