Trading the SLA/AMT Intraday

Brianharvey · Mar 10, 2015

dbphoenix said:
Did you have a question?

It's a lower high like 40d trades. Could have been an entry short

dbphoenix · Mar 10, 2015

k p said:
I appreciate this "window" into what you're actually doing. Now if you shorted around the 88 level based on the lower high you point out, price moved nicely till it hit 71 which formed the overnight low, but then it climbed all the way back up to 86 just before the open. You would have even had a SL break in there. So using the daily/hourly time frame, I certainly understand how you're holding this short till we hit at least the mean of the channel, but given that you took this short today, and not higher up based on the RET on the hourly chart, I find it interesting that you would have let price come back up to almost your entry point after being over 15 points ahead without taking some profits. I'm not saying you didn't, so please don't think I'm trolling, I'm just analyzing the action.

Again, you miss the point entirely. It's not the retracement. It's not the bar interval. It's not lines of one sort or another. IT'S THE TEST OF THE LL OF THE RANGE THAT PRICE JUST EXITED. Even if you plot a chart of 60m bars, you can see the retracement after the breakdown by looking at the right tick. THE EXACT ENTRY IS ENTIRELY IRRELEVANT.

k p · Mar 10, 2015

dbphoenix said:
Why do you continue with this?

Because I asked a genuine question that I hoped I would get a genuine answer to. Talking about lower highs on a 1 minute chart is somewhat different than on a 1 tick chart I imagine, just like a support level that forms on a 5 sec chart really means nothing, and hence why 40D outlines to use the 5 minute as a guide to get levels from.

dbphoenix · Mar 10, 2015

Brianharvey said:
It's a lower high like 40d trades. Could have been an entry short

I don't know about 40D but, no, it's not an entry short. For one thing, price is still going up. And nothing is being tested. Therefore, there's no reason to short, though a beginner might short because he thinks it's "too high".

Edit: Given the time axis on your chart, I assume you're in Europe. If so, you were in a position to take the trade when it should have been taken at 0650EDT (1150 there). Again, what matters is the test of the lower limit of the range that price just broke down through. Any entry thereafter is going to be too late and will be far more likely to be stopped out. If you can't take that trade, then you should be trading larger intervals, such as 60m.

dbphoenix · Mar 10, 2015

k p said:
Because I asked a genuine question that I hoped I would get a genuine answer to. Talking about lower highs on a 1 minute chart is somewhat different than on a 1 tick chart I imagine, just like a support level that forms on a 5 sec chart really means nothing, and hence why 40D outlines to use the 5 minute as a guide to get levels from.

THE BAR INTERVAL DOESN'T MATTER. WHAT MATTERS IS THE TEST.

fortydraws · Mar 10, 2015

dbphoenix said:
That was directed to kp. He keeps hanging on, like a bad cold.

Oh. I don't see his posts at all, so I assumed you thought I was taking things to far. Which I may have been. The new ignore feature is wonderful - for me, ET is a kp-free zone

dbphoenix · Mar 10, 2015

Note: I edited my post three up.

Buy1Sell2 · Mar 10, 2015

The SLA/AMT method/strategy is simplistic trend line analysis dressed up to look like more than it is. Too many lines--Too many variables like volume. Stick to an easier approach. Buy when things are rising. Sell when things are dropping. Never risk more than 2% of TLNW on any one trade/idea. Let your winners run. Cut your losses short. Don't be duped by the fancy charts.

fortydraws · Mar 10, 2015

Brianharvey said:
It's a lower high like 40d trades. Could have been an entry short

I didn't see it that way. Honestly that little range there looked more like a continuation pause to me, but I can't say that it may not have been worth a shot under some circumstances, given where price was in relation to that low off the session's first low attempt. Given the potential reward, it would have been a relatively cheap entry, so long as you were disciplined enough to scratch or take a small loss. The 66 - 59 - 64.75 was more clearly, imo, a potential reversal in the making (which is why I chose to post that here).

One thing that might help anyone who is doing observations rather than trading is this: When price is trading into a level, and you think you should be watching for a reversal, minimize your chart and just watch the bid/ask. When doing so, keep in mind the figure at the high (so you'll be conscious of being below it). Very often, you can see the market flip (such as was the case today at 64.75).

dbphoenix · Mar 10, 2015

Buy1Sell2 said:
The SLA method/strategy is simplistic trend line analysis dressed up to look like more than it is. Too many lines--Too many variables like volume. Stick to an easier approach. Buy when things are rising. Sell when things are dropping. Never risk more than 2% of TLNW on any one trade/idea. Let your winners run. Cut your losses short. Don't be duped by the fancy charts.

The SLA doesn't use volume. Perhaps you could take a break from being a Nomadic CryptoPundit and learn something about what you're doing.