Quote from oddiduro:
After thinking about it some, I have concluded that if the Stoc and MACD both indicate a trade should be taken, then we should take the trade, regardless of postion of price in the channel. If price bumps the channel and reverses, we can still just slolom down to the base of the channel.
Nkhoi, I cannot trade everyday, as I am a nurse supervisor ( yes, I am male) and I take a lot of on call stuff. But if you all would like me to follow something on a slower fractal, I could do that. I could also screen for equities that are within a channel, and we could watch for the rockets, and get some stuff in on trading the slower fractals.
You willfind that the rocket and iceberg entries come before a channel is rolling.
There are lots of ways things happen, but I can speak about common ones to get a point made.
Many people here use the 5 min and they do annotations of right lines. Often there is a right line in effect most of the time. Gaps occassionally make things less continuous and that's how it goes.
some times a spike will slip out of the channels as well.
With this as the common setting. What happens first in a trade is that you enter according to your skill level.
You then focus on the money making situation. I am not going to go through loads of possibilities.
You stay in the trade and you see that you are leaving the vicinity of point 1.
Well look for point two.
People have many things crossing their minds after point 2. By keeping track of a stop log, you can keep your mind sort of free of thoughts that potentially cause you to not be able to hold. holding is a patience exercise for some. I am a weener on this stuff. I wish people to sit and watch. You see width of the channel at point 2. the width is a strip with point 1 on the right and point two on the left. You rerally do not know the strip width nor how the strip is tipped in slope.
both of these things you do not know are perfectly okay as you make money in the trend. There is no fear needed. Skip the fear pictures for now. all the indicators and volume are chugging.
the price graph needs to give you a point 3 and it is not giving you an exit.
Whether you are in a rocket or an iceberg does not matter.
Going away from point 2 is an adjustment the market is making to get the trend pace taken care of. Let it be taken care of.
When point 3 comes up, it is tense. Getting the first 10,000 point 3's in 10,000 trends is sort of tense. Until it happens 10,000 times there are still those creepy little questions that come up.
Pretend you are past that just for fun.
You see point three and you go to work on the chart with a line giving the right slope and you clone it to point 2.
Now you are looking around. you see you can turn it into a tape on a slower fractal but you want to wait to be sure about point 3for the 10,000 time. after you let yourself admit it is a point 3, you can see that the indicators and volume and stuff is chugging as it would.
We can explore for other things now. after point three we have beat through the 3:1 R/R target poop outs and we see that maxing profits is more fun than targets. We try to forget about targets for a moment. Keep filling thestop log. Lots of new entries as you move away from point 3.
we may see any of the following. we bop to the left side. we cruise there. we go there a little slower. we see the cycle time for the trend. we set up a reasonable period to C&R. we add some C&R times across the log.
after the left line is hit we head to the right. again. Okay look for leeting the old point 3 be replaced if the trend pace slows a little.
If you do then draw all the lines over again.
So it goes.
Sooner or later we get out the flaw box. it has cards with flaws in it. On the opposite side of each card are things to do when you find the flaw.
Make up one flawcard now.
Write on the top (the side you keep up): Stall inmiddle of right to left move. On the other side write: reverse if I am an intermediate. Beginners are ot turning this card over as yet. This is because the rocket on the STOC ended and they diselined already just to be safe and make money.
If you are not a step skipper and you are keeping sequence lists as you do your stop log and monitor, simply make up some flaw cards from your sequence lists.
Temporarily put exit on the other side of each one. thee are several people here who have posted other answers already. for those people put your prior statements on the other side of the flaw.
you may think this is fifth grader like condescending chat on my part. Actually it is cheerful stuff that is really setting you up to make money.
A flaw box is a little silver thing you buy at Cartier or that light blue box place (Tiffany's). if it is out of your way temporarily, get a cigar box or a single wine bottle wooden box.
It may sound strange but the day you have a flaw box is the day that you always have the answer as what to do.
If you do not see flaws, you hang in there. hey okay.
If you have a flaw box, look for the flaw. If it's there turn it over and do whatit says.
If your box doen't have a card. Exit. Take out a blank card and fill it in as the market tells you what to do.
use your big butcher paper wall chart to lay out more and more sequences as days go by. Pastethe one's that come up alot on top of the former one's you added already. we want a deep wall chart.
Always put up red flaw lables where the sequence ended with a flaw. One the other side of the flaw place the sequence that followed to make money if it did not end in an exit.
You will notice that things loop back into the left side of your wall chart.. At first just draw lines back into where it goes to repeat.
NEW ITEM
The first time you redo your wall chart. Put in some horizontal levels. Let the top be one minute band.
Put a wide 5 min band below that . then a 15 min band
and then a 30 min band. do a 60 min and and a daily at the bottom.
You can paste sequences in where they happen.
You will find out how it divieds up vertically in a while.
for now make the BO pieces of the sequences be green so they stand out. You will need about three separate places where these show up untimately. For now just use loopy lines to get back to a sequence.
If you do not skip over doing some visual work, you are going to come to a place where your self taught personal reinforcement makes you a wizard.
Some day a lot of you are going to have silver flaw boxes that you never have to open.
There is no "edge" box for where we are going.
