Broker wants you to generate revenue for him, he couldn't care less about your PnL. If you are using TD ameritrade the will probably be way too expensive, unless you are getting 4 dollars or less RT you are paying too much. But as I said, that is a problem for a future date, focus on learning to trade. The method described in this thread is the fastest way I know for someone who is new to this, just READ, READ again, pay attention and do the homework.
Son of If You Can Draw a Straight Line . . .
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Broker wants you to generate revenue for him, he couldn't care less about your PnL. If you are using TD ameritrade the will probably be way too expensive, unless you are getting 4 dollars or less RT you are paying too much. But as I said, that is a problem for a future date, focus on learning to trade. The method described in this thread is the fastest way I know for someone who is new to this, just READ, READ again, pay attention and do the homework.
Am I drawing a straight line correctly?
I need some feedback on drawing S/D lines (please see chart)
Attached is a chart of todays action 10/21/13: the chart is in MST so to keep it simple I have numbered the bars I am wondering about
The little blue vertical line on the bottom shows the NY 9:30 am open, it will show 7:30 am on the chart
Seting aside S/R, channels, and trend lines for now and just focusing on S/D lines:
My understanding is to get direction on a Demand line- look for a HL & a HH then draw a line off of the HL low hugging the lows that follow
My understanding is to get direction on a Supply line- look for a LH & a LL then draw a line off of the HL high hugging the highs that follow
If this is the case the 1st demand line that held was the bar 1,2,3 series(please see chart)
Q- when does a trader confirm bar 3 as a HL, when its high is taken out or when bar 2's high is taken out?
Q-where would you draw the 50% line from? is it from the bar 3 low to the bar 4 swing high?
the 1st Supply line that held was the bar 4,5,6 series(please see chart)
Q-where do you draw the 50% line from? is it from the bar 6 high to the bar 7 swing low?
Q-bar 8 closed above the supply line and the 50% line drawn from bar 6 to bar 7 but rejected the line drawn of bar 4&6 how would you read price from this point until bar 9?
On bars 9 (HL), 10 (HH), and 11 (HL) I see another possible area to draw a demand line although it looks to be a forming a hinge, again would this demand line be confirmed
once the high of bar 11 is taken out or would a trader wait for hight of bar 10 to be taken out?
I need some feedback on drawing S/D lines (please see chart)
Attached is a chart of todays action 10/21/13: the chart is in MST so to keep it simple I have numbered the bars I am wondering about
The little blue vertical line on the bottom shows the NY 9:30 am open, it will show 7:30 am on the chart
Seting aside S/R, channels, and trend lines for now and just focusing on S/D lines:
My understanding is to get direction on a Demand line- look for a HL & a HH then draw a line off of the HL low hugging the lows that follow
My understanding is to get direction on a Supply line- look for a LH & a LL then draw a line off of the HL high hugging the highs that follow
If this is the case the 1st demand line that held was the bar 1,2,3 series(please see chart)
Q- when does a trader confirm bar 3 as a HL, when its high is taken out or when bar 2's high is taken out?
Q-where would you draw the 50% line from? is it from the bar 3 low to the bar 4 swing high?
the 1st Supply line that held was the bar 4,5,6 series(please see chart)
Q-where do you draw the 50% line from? is it from the bar 6 high to the bar 7 swing low?
Q-bar 8 closed above the supply line and the 50% line drawn from bar 6 to bar 7 but rejected the line drawn of bar 4&6 how would you read price from this point until bar 9?
On bars 9 (HL), 10 (HH), and 11 (HL) I see another possible area to draw a demand line although it looks to be a forming a hinge, again would this demand line be confirmed
once the high of bar 11 is taken out or would a trader wait for hight of bar 10 to be taken out?
In replay, but once bar 8 formed until bar 9, I could not get a sense of how to read who was on control; sellers or buyers
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