Son of If You Can Draw a Straight Line . . .
- Thread starter dbphoenix
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You seem to be getting into some sort of forwardtesting here. Rather than ask me whether you're right or wrong, I suggest you do some replays, peg what you think are the important levels, then see how they play out during the following session. What the market says is far more important than what I think.
I am trying to come up with a level to focus on, in the past I ended up with so many, that you kindly pointed out that I had to cut on the lines.
Yesterday, I was focusing on the wrong things, and ended up with 41, but the level to be focused on was 50.
I am just trying to avoid wandering far away from the right path here. Or else I will end up backtesting the wrong hypothesis.
I am posting the levels I come up with in order to get an opinion, perhaps I am missing something important, then I can use that knowledge to add to the plan I want to backtest.
It acted as S before the open, and there was traders interest around that level (being the middle of the trading range from overnight)
After the open, instead of looking for long or shorts everywhere one should focus on what price does if it gets to that level, as occurred at 9:38.
In this case sellers gave up at 76 and after the break of the SL, it was so far THE entry for those looking for a long.
After the open, instead of looking for long or shorts everywhere one should focus on what price does if it gets to that level, as occurred at 9:38.
In this case sellers gave up at 76 and after the break of the SL, it was so far THE entry for those looking for a long.
Very interesting discussion of the overnight price action. I am learning a lot. I had the support at 76 coming from the Demand line which started with the huge surge at yesterday's close, connected to point that buyers were able halt the slow advance of the overnight selling pressure and start moving things back in the opposite direction, around 69.
My model still worked, but my understanding of the entire context and the additional factors providing support around 76 was clearly incomplete. Still, it felt like such a textbook day for your typical Price Action; can't get any more basic than this. Seems so easy sometimes...
My model still worked, but my understanding of the entire context and the additional factors providing support around 76 was clearly incomplete. Still, it felt like such a textbook day for your typical Price Action; can't get any more basic than this. Seems so easy sometimes...
Ok, I ended up today, defining what is it that I am going to backtest.
The only thing I am adding to the plan written last week in my journal is:
Avoid the chop. Will use the 2 losers in a row indication.
If a level is identified as important premarket, a break of the line will be given extra weight just in case the 50% level is far away, will have to see how this pans out.
What I posted last week was:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=277881&perpage=6&pagenumber=25
I have to point out that I am not coming here with something new, but just what has been so far my understanding of what is written in this thread.
Will start back testing this, next week.
Tried to execute this today and came up with this:
The only thing I am adding to the plan written last week in my journal is:
Avoid the chop. Will use the 2 losers in a row indication.
If a level is identified as important premarket, a break of the line will be given extra weight just in case the 50% level is far away, will have to see how this pans out.
What I posted last week was:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=277881&perpage=6&pagenumber=25
I have to point out that I am not coming here with something new, but just what has been so far my understanding of what is written in this thread.
Will start back testing this, next week.
Tried to execute this today and came up with this:
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