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

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Quote from dbphoenix:

And then . . . ?
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. Then you manage the trade draw your demand line on the 1st retracement and sit tight until a swing low is taken out or you exit if the last swing low is taken out!
 
Quote from Gringo:

I am assuming if Niko took the earlier short off the LH then he'd be exiting here as shown in this chart. There are other versions based on one's plan where one actually is not even getting in on that lower high because there was no shorter RET to the upside. There wasn't even an SL break of that down move hence not even giving an opportunity to enter a short. I can see how Niko's short isn't bad, and I could have taken it as well but would have preferred a shorter RET to make life a bit easier.

If one is not worried about the LL then in an alternate world where the short hasn't been initiated, as is the case here, a long could be taken by the bold where the short is exited in this chart.

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Gringo
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Sorry, but I don't know what you're referring to. The lower high is the first retracement after the break of the demand line, therefore a short. After this is taken, a supply line can be drawn, a lower low is made, and the supply line is broken offering an opportunity for a long where he stated.
 
Quote from dbphoenix:

Sorry, but I don't know what you're referring to. The lower high is the first retracement after the break of the demand line, therefore a short. After this is taken, a supply line can be drawn, a lower low is made, and the supply line is broken offering an opportunity for a long where he stated.
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I made a mistake in not paying attention to what I was looking at. When I re-read it couldn't get my head around what I was saying. I'll re-post soon.

Edit: Agree with long on 11 after SL break, RET, and up move.
Edit2: Where is the short exiting? Isn't the short exiting first and then going long or exit and reversal of short is handled at the same location?

Considering we have a LL the price is showing weakness until the SL is breached. Now this breach doesn't mean we're going up, it's the RET and the subsequent non continuation of price down and in fact it turning up that tells us the downward move is jeopardized. At least that's how I am looking at it.
 
Quote from Gringo:


Edit2: Where is the short exiting? Isn't the short exiting first and then going long or exit and reversal of short is handled at the same location?
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That's a point usually missed in metaphysical discussions. One couldn't take the first long if he were short unless he were trading two accounts. In the real world, the second retracement would be the long op.
 
Here's the chart. This shows the short but where is the short exiting? I have shown the location where the short might exit. Is the short exited even before that black dot?

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Edit: Thank you Db. I am feeling normal again :)
 

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Quote from bmwhendrix:

Shorting at less than 50% ret? I am obviously missing something on the 50% retracement.


From a few pages back:


"Here, for example, price failed to make a higher high. What does one do with that?If trading multiple contracts take one off when it failed at the last swing low and look for a retracement to get long but do not thin k about a short until the 50% line is taken out!"

or was this the mis-post attributed in error to DB?
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Yes, it was attributed to me in error, which is another reason I'd rather forget about the 50% business and focus on demand and supply.
 
I typically would not take a short from a steeper line break
if there was another line close, as I would expect some type
of reaction on that line.

I guess this would just be a risk mgmt. element
that I try to keep in mind.

DB, is this one of those things I do that just clutters up a simple method, without much benefit?
 

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