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

[dbphoenix]

Quote from niko:

price . . . hesitates at 71, the top of the TR, before the high.

And then what does it do?

 

[niko]

Quote from dbphoenix:

And then what does it do?

Price pierces the SL, and LSH.

 

[niko]

Quote from llIHeroic:

niko,

I don't know how you are always finding entries where I see none, or at least finding them way earlier than I am comfortable with. If that works for you, then it shouldn't be a problem that other people aren't getting the same answers. If it isn't working for you, you can always wait for more information and just stay out of the ranges.

This morning struck me as fairly simple. Here is my first chart with annotations. Perhaps there are complexities that I've missed, but my primary goal is just to create a basic, functional, and coherent model of the current price action. Always looking to improve, comments are more than welcome.

I did not see the channel you are showing. Are your green and red short lines entries?

 

[dbphoenix]

Quote from niko:

Price pierces the SL, and LSH.

It takes a nosedive. This is what you want to see if you're going to enter at the top of a range heading back into the range. And if you miss it, where does price hesitate next?

 

[Hooti]

Quote from llIHeroic:

comments are more than welcome.

I think db has made the focus of the current 'assignment' the support and demand lines, and retraces.
At least, I think I need to get that foundation in first.

 

[llIHeroic]

Quote from niko:

I did not see the channel you are showing. Are your green and red short lines entries?

I drew my channel on your chart. The Green was a long, and the next red was the cover. The 2nd and 3rd red lines were both short entries.

As you can see, you got your long at a lower price than I did, and you shorted higher. Good work! I hope you didn't misunderstand what I was trying to say.

The framework you created to analyze this morning's action gave you better trades than mine gave me. If your style and your plan is working for you, I was just [humbly] advising you not to be fearful that you're still doing it "wrong". Or being uncertain because other people are seeing different entries than you.

I notice you tend to get in quick and early, and don't seem to have a natural aversion to trading tight ranges and tiny channels. If you don't like the uncertainty, you can always hold off on your entries a little more, but if it isn't broke, don't fix it!

Plenty of ways to skin a cat, right?

 

[niko]

Quote from dbphoenix:

It takes a nosedive. This is what you want to see if you're going to enter at the top of a range heading back into the range. And if you miss it, where does price hesitate next?

Well, I thought you were talking about what happened just after it hit 71 for the first time (10:30), given my previously fearful history, I would have exited the short at the break of the line around 10:30, I am trying not to be so strict during this exercise.

After the small congestion that ended at 9:39 price finally took the nosedive you are referring to. If one is not short already I don't think one has a RET to enter until 9:41 at the bottom of the range where there is another small hesitation.

 

[niko]

Quote from llIHeroic:

I drew my channel on your chart. The Green was a long, and the next red was the cover. The 2nd and 3rd red lines were both short entries.

As you can see, you got your long at a lower price than I did, and you shorted higher. Good work! I hope you didn't misunderstand what I was trying to say.

The framework you created to analyze this morning's action gave you better trades than mine gave me. If your style and your plan is working for you, I was just [humbly] advising you not to be fearful that you're still doing it "wrong". Or being uncertain because other people are seeing different entries than you.

I notice you tend to get in quick and early, and don't seem to have a natural aversion to trading tight ranges and tiny channels. If you don't like the uncertainty, you can always hold off on your entries a little more, but if it isn't broke, don't fix it!

Plenty of ways to skin a cat, right?

Thank you, I understand your chart better now. Had I traced a channel I would have not taken the short, but I am not doing that now, I am just following lines and RETs and trying to identify entries, as can be seen I am not even defining exits here. The opposite entries would entail the closing of the previous position, but I am not into that just yet (simulating 2 accounts perhaps), I am observing price as it moves after my defined entries and trying to come up with new hypothesis I can prove with more testing in order to define exits.

So far I learned that taking these entries into the chop is not a good idea, but that is something that I am also documenting, in order to clarify the places where I should actually trade and the places where I just should stay aside. I have identified that my understanding of the chop is not as good as I would like, so I am working on that as well.

 

[llIHeroic]

Quote from Hooti:

I think db has made the focus of the current 'assignment' the support and demand lines, and retraces.
At least, I think I need to get that foundation in first.

Oh, I was tracking Supply and Demand the entire time, I just didn't start drawing the lines on the chart I posted until price began to move outside of the Trading Range/Congestion I perceived. I have no parameters for entry in such small ranges, although some might.

The blue and yellow lines are the demand and supply lines that my entries were based off; although you are correct in one sense, in that I did use the break of my initial right channel line as an additional indication of selling pressure for the shorts at the end of the chart.

Hope that clarifies things.

---

@niko

Thanks for the response. I look forward to continuing to learn this stuff along with you. Your comments and participation in the thread are a big help!

 

[tradewhatuc]

Quote from Redneck:

All of a sudden you such a great trader that you can afford to make fun of another

Interesting

Mkt will take that ego of yours – and shove it up yer ass – in short order

=====================================

TWUC

Keep on truckin Sir

Focus on pressure & control – who has it / who doesn’t / where is it starting wane / change

RN

I have read your stuff on other posts with enjoyment. You have a knack for getting to the essence- describing it back on a deep level with few words, That is a rare and admirable gift!

Thanks RN