Son of If You Can Draw a Straight Line . . .

[Redneck]

Quote from redbox:

Why determine the trend of the daily's for intraday trading ?

Bigger TF (Bar interval) S, R, trend - carry more weight – why – because price (the participants) spent more time making it…

And if price had wanted to reject it / create it at a different level – it would have

Nothing so straight forward as when multiple TF S’s or R’s line up

Btw;

some traders only trade dailies/ weeklies/ monthlies – hell for that matter quarterlies – their participation should never be discounted

Always be aware of the terrain

RN

 

[dbphoenix]

About this midpoint thing. This morning provided a good example of what happens around these levels.

After midnight, traders futzed around between 29.5 and 32 for a while. After they got bored with that, they scouted around for something new, and they settled into a range of sorts between 33 at 0500 and 37 at 0720. Midpoint? 35.

They then dropped to 31 at 0820, rallying to 40 at 0910. Midpoint? 35.5. See the pattern here? And it's established well before the open. So unless one just loves being chopped up in congestion, he needs to avoid 35+. In fact, he needs to avoid this entire range since there's no repeatedly-tested support or resistance. It is a go-mow-the-lawn day. If one wants to sit and watch traders eat donuts and surf porn, that's up to him. But he's better off setting his alarms and doing something more productive.

Incidentally, these congestions generally serve as a sort of reset, like a road trip where you pull off at a rest stop at a major crossroads and have a discussion about where you want to go next. The Line Of Least Resistance may have gotten you there, but it may not necessarily propel you forward. It may go left. Or right. Or it may back up a bit to see that historical marker it missed on the way.

Be available.

 

[redbox]

Quote from Redneck:

Bigger TF (Bar interval) S, R, trend - carry more weight – why – because price (the participants) spent more time making it…

And if price had wanted to reject it / create it at a different level – it would have

Nothing so straight forward as when multiple TF S’s or R’s line up

Btw;

some traders only trade dailies/ weeklies/ monthlies – hell for that matter quarterlies – their participation should never be discounted

Always be aware of the terrain

RN

Thank You Redneck

 

[redbox]

Quote from dbphoenix:

About this midpoint thing. This morning provided a good example of what happens around these levels.

After midnight, traders futzed around between 29.5 and 32 for a while. After they got bored with that, they scouted around for something new, and they settled into a range of sorts between 33 at 0500 and 37 at 0720. Midpoint? 35.

They then dropped to 31 at 0820, rallying to 40 at 0910. Midpoint? 35.5. See the pattern here? And it's established well before the open. So unless one just loves being chopped up in congestion, he needs to avoid 35+. In fact, he needs to avoid this entire range since there's no repeatedly-tested support or resistance. It is a go-mow-the-lawn day. If one wants to sit and watch traders eat donuts and surf porn, that's up to him. But he's better off setting his alarms and doing something more productive.

Incidentally, these congestions generally serve as a sort of reset, like a road trip where you pull off at a rest stop at a major crossroads and have a discussion about where you want to go next. The Line Of Least Resistance may have gotten you there, but it may not necessarily propel you forward. It may go left. Or right. Or it may back up a bit to see that historical marker it missed on the way.

Be available.

Thanks DB, will incorporate some of this and Gringos comments in my notes.

I have a clearer understanding now than I had yesterday.

I think its safe to saw avoid midpoints for the time being.

 

[redbox]

Quote from dbphoenix:

Yes, the three steps are a logical progression. And you want to see what everybody else sees, which means at least an hourly and a daily chart. Not only will these provide a framework, but you are also most likely to find those levels where support and resistance are most likely to be rejected in a manner that provides a profitable trade (a rejection of support or resistance that nobody sees, much less is aware of, is not likely to put bacon on the table). Once those levels are determined, however, you must make yourself what Douglas calls "available".

When you enter a boxing ring, you have no idea how the fight will unfold or who will be the victor. But it is a ring, after all, bounded by canvas and ropes. Ditto football fields, tennis courts, pool tables.

As for Tampa, he had three journals. This was the first: http://www.elitetrader.com/vb/showthread.php?s=&threadid=9334

There really was nobody like him, nor has there been since. If you want to know more about him, check this article: http://en.wikipedia.org/wiki/Bob_Lassiter

Magna knew him personally.

That wiki entry makes funny reading, I think I like him already.

 

[dbphoenix]

Pop Quiz:

1. Why was going long off "support" at 32 at 1000 not such a great idea but going short off "resistance" 45m later a better one?

2. What is an "air pocket"?

 

[bmwhendrix]

Quote from dbphoenix:

Pop Quiz:

1. Why was going long off "support" at 32 at 1000 not such a great idea but going short off "resistance" 45m later a better one?

2. What is an "air pocket"?

 

[game]

Quote from dbphoenix:

Pop Quiz:

1. Why was going long off "support" at 32 at 1000 not such a great idea but going short off "resistance" 45m later a better one?

2. What is an "air pocket"?

While price did bounce off the 32 level (first created during PM and then later confirmed at 10EST), one would be entering in the middle of the larger value area between 25 and 40, which has a mp of 32.

The short off R was a better trade because of all the expectations that would unravel as traders who had positioned for the BO, would now begin selling. Technically, price was at an extreme and due to be revert back to value zone at 35/32.

Air pocket occurs when price moves fast and the volume behind this movement is low. This means that should price retrace, there is a good likelihood of fast movement back down since there are fewer transactions for price to move through.

 

[MadeMan]

Quote from dbphoenix:

Pop Quiz:

1. Why was going long off "support" at 32 at 1000 not such a great idea but going short off "resistance" 45m later a better one?

2. What is an "air pocket"?

1. Choppy Grind towards sup. with LH/LL / more pronounced up move towards res. with a clear indication a LH that price isnt interrested to go any higher ..



2. Air pocket created between the choppy grind and the rally towards res. enough space for price to drop..

 

[bmwhendrix]

2. What is an "air pocket"?