I think in this one instance, I have an advantage of coming later to the SLA game. I've read a lot of the posts in the 4 threads and many of the journals of people working through this. You've harped quite a bit on this step and have said to stop trading - sim or live. I figured that maybe if I listened and started out as you suggest, I wouldn't have to start over again in 3-6 months.
switching gears to Price Action via SLA
- Thread starter gears
- Start date
For years, perhaps decades, 'time frame' or timeframe in the context of trading has referred to what some now call 'bar interval'. And some of us aren't about to change just because there is now an apparent agenda to push that change. A better term for the span of time in which you're interested is the unambiguous 'time span'. Frankly 'bar interval' sounds too much like time spent in a tavern.
No agenda. "Time span" is fine. But a 1m bar is not a timeframe; it's an illustration of tick activity during a 1m interval. Or span. Unless one is trading for only one minute.
A "bar interval" can also be a "candle interval", if that's what one is using. What matters is communication, not what something is called. This can be seen in the endless debates over what is "technical analysis" or "trend" or "trendline" or "support" or "noise" and so forth.
But since you're not employing this approach, there's no reason for you to change in any case.
Points well made. However your post has recalled a longstanding question of mine. Exactly how long is a 1-minute bar? It can't be 60.000 seconds because that would make the next opening price identical to the current close, which is rarely the case. So is a -minute bar 59 seconds in length? 57 seconds? Any insight is appreciated.
Whats the difference? When one bar ends the next one begins, whether it is 57, 59 or 60 seconds. Its a flow from 1 bar to the next.
I don't know that someone's journal is the place to discuss this, particularly since I've addressed this so many times in my posts, but, as Tonkadad points out, price is continuous. There is no "open" nor is there a "close". However the trader elects to illustrate price movement is of no concern whatsoever to the market nor to price. He can use time bars, range bars, CVBs, all of these in candle form, or some other vendor's dream. Price couldn't care less.
If one wants to view price movement, he should watch a plain T&S window -- just last price and volume -- or a 1t chart or a line chart. But no one is going to do this, at least not for more than an hour. The "1m bar" is nothing more than a link between the continuity of price and whatever the trader is used to. But if he never grasps the continuity of price, he will have no more success with this than with any other method he's tried.
Those who want to explore this can do a search using my name and "continuity". Or they can read Wyckoff's original course.
The difference should be obvious. If a 1-minute bar is less than 60 seconds, as it must be if the current close and the next open are different, then there is no flow. There are gaps.
I get the concept of continuous time but bars represent discontinuity.
This is obvious with stock daily bars where there is a 17.5 hour gap between the close and the next open but it is less obvious with, say, 1-minute bars. But the gaps are still present and real.
Rarely do any of us grow up learning how to operate in an arena that allows for complete freedom of creative expression, with no external structure to restrict it in any way. In the trading environment, you will have to make up your own rules and then have the discipline to abide by them.
The problem is, price movement is fluid, always in motion, quite unlike the highly structured events that most of us are accustomed to. In the market environment, the decisions that confront you are as endless as the price movements you intend to take advantage of. You don't just have to decide to participate, you also have to decide when to enter, how long to stay in, and under what conditions to get out.
There is no beginning, middle, or end - only what you create in your own mind.
-- Douglas
The problem is, price movement is fluid, always in motion, quite unlike the highly structured events that most of us are accustomed to. In the market environment, the decisions that confront you are as endless as the price movements you intend to take advantage of. You don't just have to decide to participate, you also have to decide when to enter, how long to stay in, and under what conditions to get out.
There is no beginning, middle, or end - only what you create in your own mind.
-- Douglas
Attachments
Worked through the NY open hours of 12/2/13 in replay. I set price to start at the 0910 area so I have some time to go back and see what's transpired overnight and at the previous EOD.
This was exhausting. Even though just watching price, the open felt like chaos to me as buyers and sellers were wrestling for control.
I remember reading something from 40draws about if a retrace was 3 minutes or less he almost ignored it as it wasn't significant enough to slow down the current price movement. I've noticed a bit that the 3 minute timeline is a good one also for not panicking. Expect pullback and 3 minutes of it isn't too bad!
*** My current thought process is that giving up so much profit after having watched price go down so much would be very hard. I don't think I could stomach it. But I'm sure it's all about getting used to price and quick changes of direction as well as going in with more than one contract and exiting when certain criteria are met.
SLA commentary welcome.
- Overnight high of 3497.50 and low of 3487.25.
- Sharp decline in price starting around 0300 with a decent sideways pullback for a little over an hour.
- Trying to rebound since 0520. 50% mark of the first up drive was compromised twice. Seems to be on the upswing again until 0800 but at 0900 neither buyers nor sellers seem to have taken control.
- Price is hanging out in less than a 2-point range.
- From 0844-0846, buyers tried to take price higher, but ended up in the same spot each time.
- Price seems to want to head up.
- Price makes the highest high since 0800
- HH after 3-min pause. DL in place - price will likely pause or go down a little.
- Another HH well inside the DL
- Opening bar and the DL is definitively crossed
- After bouncing back and forth through the DL, another HH is made
- Sellers d not seem to like that price is rising and have taken control for the moment.
- Back inside the DL and a new HH
- Big price jump - breaks overnight high. Would expect sellers to counter. Steeper DL drawn as move feels parabolic.
- Steeper DL break but price doesn't rebound much
- Another quick turnaround of price and a HH. DL fanned.
- Price plummets through DL and pauses at the bottom. Rather than immediately shooting back up, it feels like it might be a retrace for a down move.
- Dog barked - heading down. SL drawn.
- Pause but SL just nudged.
- Parabolic down move. Expect start price rise.
- Price does NOT rise. It keeps falling sharply. No real pauses for even a slight retrace.
- Less strong down movement, but still no pressure from buyers.
- Buyers rally. SL broken.
- Seems like enough movement up with a retrace to consider that the down thing might be over even though the 50% mark is quite a distance away. ***
- DL compromised. Not a huge shocker though. Depending on where an entry would have been set for a long, it might have been triggered.
- LL of the whole down move. Previous day low also breached.
- DB? Or just a pause?
- LL but the SL (that I've drawn) has been toyed with even while making LLs. But after such strong down movement, I should be prepared for some pressure to balance things out.
- DL definitely broken. Getting close to LSH.
- Can certainly draw a trend line and price of LSH is met. Definitely stronger pressure from buyers.
- LSH breached
- 50% mark of entire down move met. But price was not met with resistance on the way up. No real pauses, LHs or retraces.
- As quickly as price rose, the retrace occurs quickly.
- Sellers seem to have resumed control.
- Price made a LL but it bounced off "like a hot potato."
- Buyers pushing soundly up
- Retrace and HH, but price not high enough to trigger a one yet.
- Long would be triggered and DL in place. Price is rising without being hindered (23-27), falling with barely any pause (27-30) and again rising with just the slightest of a retrace (30-32). Who's in charge? I certainly don't know.
- DL breached slightly, but HH. 50% mark of entire down move has been compromised.
- DL definitely broken, but price trying to head back up.
- Will price turn around and continue heading up or will it head down?
- Price doesn't make a LL or a HH - just kind of hanging out.
- Price gets back to previous high, but can't breach it. DT? DL not fanned.
- LSL breached, but pice almost seems to bounce near the 50% mark.
- Going to take another shot at the 50% mark? Not right now.
- Price plummets again.
- LL and revised SL
- Decent pace of pullback after LL, but couldn't breach LSH. With a SL break and same low, is that a DB?
- Dog barked for a long. DL in place with tighter trend line also in place due to HH.
This was exhausting. Even though just watching price, the open felt like chaos to me as buyers and sellers were wrestling for control.
I remember reading something from 40draws about if a retrace was 3 minutes or less he almost ignored it as it wasn't significant enough to slow down the current price movement. I've noticed a bit that the 3 minute timeline is a good one also for not panicking. Expect pullback and 3 minutes of it isn't too bad!
*** My current thought process is that giving up so much profit after having watched price go down so much would be very hard. I don't think I could stomach it. But I'm sure it's all about getting used to price and quick changes of direction as well as going in with more than one contract and exiting when certain criteria are met.
SLA commentary welcome.
