Quote from vorzo:
Jack, thanks for the feedback.
The reason I took the entry is that the signal was triggered, with volume on the rise and enough room to resistance. One additional reason was that price crossed the 20 SMA. Before looking at your method I was trading an MA cross that tested well, was capturing 20 pt moves but had too many whipsaws.
**** I am so glad you point out the MA inherent potential for getting whipsawed. We all want to have a standard component in our approach to head off whipsawing and, as a counter to be able to slalom in the whippingness.
Your volume action comments are interesting - the sequence that you mention, what do you mean by right side - the right ascending trendline?
****I am trying to impose an orientation on people when they assess a picture. I label the channels from the viewpoint of time instead of profits. Time on the right side is the future. The right side of a channel is where the end is going to occur. We will get to using the highest profit exits if I can get there soon. For now I am looking towards "anticipating" as a concept to prpare people for possibilites and, then in turn, doing eliminations of alternatives that are less and less likely. When an unlikely event occurs it is often one that raises risk markedly. These things often turn out to be the clue that is crucial.
*****Like for the space crew, had they known a piece took three days to reenter they would have known easily that its specific gravity dictated that it was structural and was lost as a result of a yaw manuver where eccentricity affects higher density mass. It is trouble in center city stuff.
****You cite resistance s a meaning full future anticipated condition vis a vis a MA mid trend entry. Very cogent and certainlt a key facet of MA trading. all my annotations were of the same ilk vis a vis taking whole tend trades.
**** Seting up the trend, assuring that it is not a "failure to BO" (by tracking the P, V sequence), setting the money velocity and pace of market (point 2) in comparison to the volume (push calibration), resetting point 3 as the next volume DU coasts into the picture, etc. These are all articulated by many sequence indicator signal events as they just tick off one after another. Knowning the sequences is like having an inspection clip board for any technical or materials handling process that adds value. certainlty if a step is awry, you focus and handle it. I call this a flaw and it sets you up for a decision and action. This is how "wash" trades get sooooo smooth for people. They (people) are in a place where drawdowns are history; later, in fact they are playable (like the slalom on whipsaws) and profitable.
Do you suggest holding through the whole move?
Or exit when the volume dries up with failure at resistance and reentry on bounce off trendline with volume picking up?
*****You should endeavor to use an entry that picks up more of he move and hold until your resistance tests come into play.
** Continue with the MA that handles this market. (It is so very true as you say that you have to continually calibrate MA's to the contemporary market. (I posted previously on how to optimize this but no one entered the dialogue). With this working, lets try to get the lag on the MA cured by seeing where a "leading" signal can be derived from it. I think KISS is the main theme all the time. Adding stuff is best done as a temperary thing where either the addition replaces something aftr a sufficient time overlap or the addition becomes a tempoary magnifying glass for gleening something already there to be seen.
****Like NASA is making up a list of resident time in space for parts that fall off. They are ranking things by specific gravity as the key factor for extent of remediation required.
*****The bounce off the right line is almost as important as point 3. Keeping in a trade begins with getting point 3 down. The second point 3 is a bounce off the right line problem exactly like the subsequent bounces after th adjustment. You take resistance as a limit and divide money gained per bounce to see how many can occur. As you see max volume BO lessen on each bounce you get ready for creming mid channel for max price. this is where you also know to exit as a reversal and the confirmation is the BO through the right line. The reversal point becmes your new trend point one.
****You can see all of this flows. What we are doing is gradually becoming familiar with making money all the time every day.
*** the annotated chart we are working from gives you a nice intraday trend sequence set of basics. One of the things i look forward to is seein Tampa take a trend all the way. As you say dawg has it down. The people who "see" how starting simple and making steady profits have an advantage. they are able to perceive that you use a mechanical means to establish an emotional base that then enables you to have a descretionary mental capacity. It is not in use but it is there.
Contrast your articulation with that of trendy. She is not yet at the point of any differentation emotionally. The black and white world is a stiffling one. Criticising people for not playing by mechanical rules, demonstrates and inability to gain confidence to participate in real markets. At some point, every wealthy person has gone through transitions away from a mechanical lifestyle. Training can facilitate or hinder this. Wally and trendy exhibit this stuff in parallel ways, one in physics the other in beans.
More questions after I read the whole thread - I see that dawg is familiar with 1,2,3 and end effects.
**** yes kewl. I hope I filled in some stuff already that is coming up for you.
I had it set to a 10 point scale but I resized the window before I posted the chart. I find this very helpful as I was using the "autoscale" setting (that makes charts look nicer as you mentioned) and was often mistaking a wiggle for a big move. One scale for all allows you to calibrate your eyes to the chart.
** Yes I agree with you. Thanks for the space too.
Thanks,
vorzo
