Ups and downs trading

I found an edge in chart reading but I dont have the necessary mindset to execute it in a day trading frequency so I now wait for it to appear in longer time frames which is maybe a few times a month in the ES.

Edge was found by luckily stumbling upon an old technical trading blog, watching charts for 1.5 years and also paying for a mentor who trades this method to show me the information in video format as I like to learn via visual and audio formats. Also read countless books and youtube videos... Key Support and Resistance is not where textbooks tell you it is.



Now the hard part is getting my head right to execute this edge.
 
As a part of my learning, I'd like to review some figures that traders come across. We've talked about a bullish triangle already. Let's talk about Head and Shoulders. Here is what I've got from Volman so far.

Head and Shoulders

· Type: Reversal pattern

· Description: "Triple-arch formation standing on a horizontal or slightly tilted pattern line, often referred to as a neckline. The arch in the middle is the most prominent (head), but it is the shoulder on the right that warran ts the most attention. Should it start to build up pressure on the neckline, a serious bear break may follow. As is the case with all patterns, inverse versions are equally common."

· "two conditions demand attention in all situations:

o the break of the pattern should not be set against explicit dominant pressure,

o and there should be sufficient buildup prior to the break"

· "follow:

o pressure (bullish or bearish? Possibly look at EMA)

o conditions (a bar setup developing?)

o and buildup (is there one?)"

· A pattern may fail if one or a couple of conditions are not met.

What would you add? Definitely, some pictures would be helpful.
 
_eug_ said:
If you build a market reversing position as a big trader.... where would you defend it?
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I like thought-provoking questions. I'd say in a zone, of which the last high point (in a bull) is the middle. And then, I'd fight the low of every lower high. Makes sense?
 
_eug_ said:
Carefull not to end up like a certain poster here who spent 10 years reading price action bar by bar with nothing to show for it.
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you can mention me by name- i am not going to try to kill you.[that might be a lie:D]

That is not Brooks fault. i take full responsibility.

If you are following Brooks , please follow him and do what he does. looking at multiple TF is not a magic wand....you have to process the extra information

i have just realized you can only see 20 yards in front of you but you can travel a 1000 miles that way; so why see everything and everywhere.! just look in the present in front of you: that is what i am doing. see my chart now? notice what i have changed and why?
now.png
 
Alfing said:
As a part of my learning,
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you are doing the right thing if you are learning.
but try to learn one thing ,it does not matter which one thing.
Brooks is good as are many others.
but you cannot process so much information,
trading bar by bar is good but just ignore inside bars.
 
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