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

dbphoenix · Oct 10, 2013

Quote from llIHeroic:

Thank you for responding to me. Let me see if I am understanding your instruction correctly. I will disregard volume since it does not pertain to this discussion or the thread. I have been trying to incorporate it due to references in the Wyckoff material and in the readings at TL, but perhaps it is a hindrance to me at this point.

. . .

Thanks again for your patience in going over these things with me. It is perplexing, you make this sound so easy, and it seems like it is and that I am understanding it, only to find that for some reason the concepts continue to elude me on some level.

You'd probably understand this better if you were to begin drawing supply/demand lines and locating retracements, preferably on a 1m chart.

Huyang · Oct 10, 2013

Quote from dbphoenix:

Yes, you're wrong. You're predicting the future, and it's all bad. You're assuming that everything is going to go wrong because it's gone wrong so often before. But every trade is unique, and the outcome is unforeseeable. You have not yet accepted those facts, which is one reason why you continue to have trouble.

A more productive response would be to decide in advance just exactly what you would do IF your buystop were triggered and IF price did not move upward as anticipated. At that point, you'd have a point at risk.

DB:
I need to ask you a related question: Suppose before the open, i have a buystop @70.75. It is clear that I need to think in advance what i should do if the buystopp are triggered but price does not move upward as anticipated. But i have difficulty to find a reasonable sell stop price if price indeed does not move as anticipated. I guess i could decide the sell stop price based on low of TR, also below a small supple line drawing from 9:03 EST high. Then how many points below low of TR prior to the open would be good? the low of TR is 67.75.

You said, "at that point, you'd have a point at risk". Do you mean to use a very tight stop 1 point below entry price? Thank you very much.

dbphoenix · Oct 10, 2013

Quote from Huyang:

DB:
I need to ask you a related question: Suppose before the open, i have a buystop @70.75. It is clear that I need to think in advance what i should do if the buystopp are triggered but price does not move upward as anticipated. But i have difficulty to find a reasonable sell stop price if price indeed does not move as anticipated. I guess i could decide the sell stop price based on low of TR, also below a small supple line drawing from 9:03 EST high. Then how many points below low of TR prior to the open would be good? the low of TR is 67.75.

Again, there are no stops. Exit when the trade isn't doing what you expect it to do. As to where that might be, that's one of the objectives of testing.

Quote from Huyang:

You said, "at that point, you'd have a point at risk". Do you mean to use a very tight stop 1 point below entry price? Thank you very much.

Again, there are no stops. An exit from the bottom of the trading range would be a signal that the trade was going wrong. To exit there would mean a loss of one point.

Huyang · Oct 10, 2013

Quote from dbphoenix:

Again, there are no stops. An exit from the bottom of the trading range would be a signal that the trade was going wrong. To exit there would mean a loss of one point.

DB:
The exact low of trading range is 67.75, the stop entry price is 70.75. But the loss would be still 2 points if exit at the bottom of entry bar, middle of trading range . Maybe i misunderstood what you wrote in the above? Thank you.

Laissez Faire · Oct 10, 2013

Quote from llIHeroic:

Thanks again for your patience in going over these things with me. It is perplexing, you make this sound so easy, and it seems like it is and that I am understanding it, only to find that for some reason the concepts continue to elude me on some level.

What makes you convinced this 'method' will make you rich?

dbphoenix · Oct 10, 2013

Quote from Huyang:

DB:
The exact low of trading range is 67.75, the stop entry price is 70.75. But the loss would be still 2 points if exit at the bottom of entry bar, middle of trading range . Maybe i misunderstood what you wrote in the above? Thank you.

The entry price is not 70.75. The bottom of the entry bar is irrelevant. I suggest you read it all again without prejudice.

llIHeroic · Oct 10, 2013

Quote from Laissez Faire:

What makes you convinced this 'method' will make you rich?

I am unsure where you are drawing this conclusion from, as I have never said or implied anything of the sort.

By no means do I intend to come across as abrupt or impolite, but are you going somewhere relevant with this query?

wolfpacker · Oct 10, 2013

Db,

Thanks again for all of this.. I have a question on 50% retracement.. Is that of the previous leg or the total move to switch bias?

Specifically , there are several scenarios.

!. Broke 50% previous leg but not below pivot(<100% retrace of leg)

2. Broke previous pivot(more than 100% retrace of previous leg) but not below 50% of total move in a multi leg move.

Thanks for any help you could lend in this.

Wolf

dbphoenix · Oct 10, 2013

Quote from wolfpacker:

Db,

Thanks again for all of this.. I have a question on 50% retracement.. Is that of the previous leg or the total move to switch bias?

Specifically , there are several scenarios.

!. Broke 50% previous leg but not below pivot(<100% retrace of leg)

2. Broke previous pivot(more than 100% retrace of previous leg) but not below 50% of total move in a multi leg move.

Thanks for any help you could lend in this.

Wolf

This may be helpful: http://www.elitetrader.com/vb/showthread.php?s=&postid=3844673&highlight=exit#post3844673

dbphoenix · Oct 11, 2013

So. Since midnight, price has made a lower high and a lower low followed twenty minutes ago by another lower high. The NY RTH session opens in five minutes. So what does one do?

0928: Price has made a higher low. What does that mean?

0936: Price has exceeded the last swing high. What does one do now?