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

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Still far away from proficiency, but at least the lines keep me in the green :).

I think my main issues now are:

1. Unable to see the adequate S/R levels for the session.
2. Just take trades after a 2 bar rule I invented for another instrument, but as price is a movie so will work on forgetting that rule.
3. Still not sure about the failures, I see they provide good opps in hindsight but still need to back test those to know for sure.

I am sure the senior traders can spot lots of other issues, so please do not be kind :( .

I replayed the market because I was away during the morning, that is why I am posting so late.
 

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Quote from niko:

Still far away from proficiency, but at least the lines keep me in the green :).

I think my main issues now are:

1. Unable to see the adequate S/R levels for the session.
2. Just take trades after a 2 bar rule I invented for another instrument, but as price is a movie so will work on forgetting that rule.
3. Still not sure about the failures, I see they provide good opps in hindsight but still need to back test those to know for sure.
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You should review the first page of the thread and go over your chart again.
 
Ok, I will go by the steps as I understand them.

The first step is to determine the current trend of the market (Wyckoff):

By yesterday´s close we were still in an uptrend, at the bottom of the trend channel.

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The second step is to determine one's place in the current trend:

Before the open, we were in a hinge, just around the MP which also coincided with friday´s low. The levels of interest were

237 price found R there in Sep 9th and the 23rd, it also had a failure on sep 20th.

231 was yesterday´s high.

215 current hinge MP

203 MP of the hinge from the 17th and yesterday´s low.

195 Bottom of the gap and found R there on the 18th just before the BO.

182 found S there on the 18th and the 17th.

attachment.php


I think that this is where I make the first mistake, and as the rest flows from this I will stop here. Any feedback will be appreciated. After that I will continue with today´s hindsight analysis.
 

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Quote from niko:

The second step is to determine one's place in the current trend:

Before the open, we were in a hinge, just around the MP which also coincided with friday´s low. The levels of interest were

237 price found R there in Sep 9th and the 23rd, it also had a failure on sep 20th.

231 was yesterday´s high.

215 current hinge MP

203 MP of the hinge from the 17th and yesterday´s low.

195 Bottom of the gap and found R there on the 18th just before the BO.

182 found S there on the 18th and the 17th.

attachment.php


I think that this is where I make the first mistake, and as the rest flows from this I will stop here. Any feedback will be appreciated. After that I will continue with today´s hindsight analysis.
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First, it's not a midpoint. A midpoint is the middle of a range and is the level at which the greatest amount of volume occurs (you really need to start reading my posts: grr). It is a point of equilibrium.

Second, while the prep work is necessary and useful, your point of focus at the beginning of the session is whatever is the most pertinent feature of the landscape prior to the beginning of the session. In this case, it was the hinge pointed out earlier, the one that began on the 23rd, specifically, the "apex" of that hinge. Forget about everything else until price starts moving. Then you can concern yourself with all that other stuff.

Third, once price leaves the hinge, and it will, then you start following it. You go where it leads. Where is that?
 
Quote from dbphoenix:
As I look over posts here and there from the past several days or so, it appears that there are a number of people who are applying the notion of "midpoint" incorrectly. This is not only likely to confuse them but also those who happen to be following their "journey".

While the use of the term "midpoint" may have been sloppy here and in the Mother Thread, it is meant to apply to the midpoint of a trading range in order to focus attention on where the most volume has occurred. In this way it is different from a mode in that volume need not have anything to do with price (unless every transaction is for only one share or one contract). It is different from a mean in that the highest level of volume may not exactly match with the level equidistant from the high and low of the trading range. "Mean" is more appropriately applied to "mean reversion", which can apply to both diagonal trading ranges (trend channels) and lateral trading ranges.

A 50% retracement of a rally or reaction, however, has nothing to do with any of this, particularly volume. It is simply a general measure of strength or weakness, i.e., price that retraces more than 50% of a reaction shows strength; price that can't shows weakness; price that retraces more than 50% of a rally shows weakness; price that doesn't shows strength.

Therefore, take care to keep mean reversion, trading range midpoints (or "points of control"), and rally/reaction retracements (MAEs) separate.
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And an added note: the middle of a hinge is just a middle. It doesn't mean anything. The "point of equilibrium", which is the point reached when price comes more or less to a standstill, is not a point of equilibrium until, obviously, price reaches it. Until then, price is still in flux.

Since the purpose of the behavior that creates the hinge in the first place is to reach equilibrium, or agreement, this should not be difficult to remember.
 
Quote from dbphoenix:

If you want to do Monday, the number of positive ticks was 167 and the number of negative ticks was 19.
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I've been working on this. Can you recall the time window traded?
 
Quote from riaamaan:

I've been working on this. Can you recall the time window traded?
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I thought I had been specific, but apparently I wasn't (post #54 or so). It was the continuing difficulties with this that gave me the idea of having others reconstruct my day rather than my giving yet one more explanation.

In any case, my first trade was at 0556. Yes, 0556. Don't ask. My last was at 1135. That was an unusually long day, but it was so interesting I was able to stay with it. I appear not to have given the ticks, either. Ticks gained was 167 and ticks lost was 19. Wins 5 and losses 4.
 
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