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

Status
Not open for further replies.
Quote from dbphoenix:

Something I learned in an art class long ago has proven to be very useful in trading. The artist was teaching us how to see, and he did this by placing a simple object in front of everyone, in this case an apple, then telling us to study the apple as long as we needed to in order to draw it, but not to begin drawing until we looked away. If we couldn't come up with anything, we could look back at the apple as much and as often as we needed to, but we couldn't look at it while trying to draw it. This exercise had a profound effect.

When I first open a chart for the upcoming session, the results of this exercise inform what I see. I see first whether price is going up or down or sideways. I look to see where and how the various congestions relate to each other. But perhaps most important I look to see where traders are seeking value. No lines, no boxes, no zones. A Google EarthMap, if you will.

So I notice this morning that traders spent all night hovering around 34, then plunged this morning to 28, which happens to be the apex of the triangle formed yesterday afternoon. And now we're square in the middle of all that. What does it all mean? I have no idea. But it does provide me with a framework, a context, and prevents me from dragged around by the balls with no idea of where I am and where I'm going.

How long does all this take? Maybe 30 seconds. All because of an apple.
More...

Illuminating as always. So far I have managed to see more and more stuff in the hourly. I am trying to focus on the nearest and most important levels. As G pointed out yesterday they serve a great purpose once one is defining if a trade has to be closed or not. I have to keep an eye on that.

Regarding your view of the market my reading was that we were forming a new triangle with an apex around 30 with 35 and 26 as my first levels to be aware of after the open.
 
9:23 Congestion between 29 and 33 in the 1 min.
:29 Bo waiting for RET
:30 Short invalidated
:34 Chop. How fun.
:36 Upside BO.
:40 REt expectations melting.
:42 Avoided the long at 33.25
:45 Somehow I am thinking avoiding the short at 31.25 was not the smartest Idea . :(. But rules are rules I saw chop and I better wait for 28 to be taken out.
:50 Buyers showing up at 26 where they were expected. In retrospect, I think the fact that we were testing 35 gave the short more weight. Any opinion here?
 
What's the bigger picture? Price is having trouble going up. Where's the LOLR? Your entry is a bit problematic hence making it hard to sit tight. Demand trying something here.

Gringo
 
Quote from Gringo:

What's the bigger picture? Price is having trouble going up. Where's the LOLR?

Gringo
More...

We are at the bottom of the TR, and sellers are also having trouble getting lower. SL still holding so, short still works. But not sure for how long.
10:00 SL Broken
:03 SL fanned
 
These kinds of wild swings represent indecision, I think. It's not clear to me anymore what's happening. BO and Ret here or chop?
 
Status
Not open for further replies.
Back
Top