Quote from PointOne:
Sure, happy to. It will help me to understand if I know why I did what I did or if I was merely lucky.
(This post is in the form of notes to myself, more or less as I'd keep in my own log, and I do not presume to teach anyone anything about trading. That said, I do hope it is of some value.)
This was a break-through day for me - although only paper trades, the reinforcement of taking timely actions and seeing the anticipated thing happen is starting to create some very strong connections in my brain. I'm attempting to develop a trading equivalent of sports "muscle memory" where eventually I will click T whenever I sense with some confidence that a Point 1 (FTT) has just formed.
Note: see page 774 for complete post
PointOne (justyield)
I believe I gave this composition a quick read the first day I had decided to try and learn these methods. No doubt my mind was racing in 10 different directions at the time, and I failed to appreciate many of the insights offered here. Wow - this is some excellent stuff imo.
I found very interesting Pointone's discussion of the flollowing:
Snip: Price is testing the left of the channel but cannot get there, despite volume. Either there will be a swift and violent reversal or it will sit there mid channel for a while, in a dwell point.
Snip: I've also noticed that you sometimes get a second chance, further confirmation and perhaps a better price if you wait just a little longer during this dwell point - patience and alertness all at the same time. You may even choose your price and hope to get taken in on a limit order at the new TL (as close to Point 1 as possible).
If I'm correct in my assesments of the above snips, I've seen this many times in the euro. They print a new intraday high, and then drift into what I always considered chop. At some point, after they have lulled me into "sleepin at the mouse", they do the headfake thingy (suppose just tidying up any "wannabe long the b/o" buy stops and weak-handed nervous newbie top-pickers) and then its "look out below" for a quick 20-30 pipper. Pointone's discussion of this has provided a new clarity here, at least for me.
Snip: If you see a FTT of your traversing micro-channel as well as a FTT of the major trend signal-carrier channel, you pretty well know it is a major FTT and worth a trade. At this point you know nothing about the coming price move, but in risk reward terms it is a pretty good bet.
Makes perfect sense to me, Pointone. Sure hope you will continue to frequent these pages, and provide updates of your successes and experiences. Best of luck ...
