Very sad day...

[volpri]

The move down good for a couple of points. Next followed by a wedge top failure in the resistance zone (in the sense price didn't make it back to the support zone before heading back up) as price goes thru the resistance zone. Once it is determined a wedge top failure in in play then that is another long opportunity. So, after the exit on the short 3 bars later was a good long entry to betting that price will go thru the resistance zone. This type of behavior (wedge failures tops) are usually good for two legs or more for the long side. However, we are also approaching the high of the session so we are in another resistance zone. But if one took the long signal (I didn't) they could exit in this second resistance zone or hold for more profit. There is a lot of buying coming in. Just have to see what happens. Will check back later. Can't watch anymore. Have a project to work on.

 

[volpri]

My final post. This is what happened. It sliced thru the second resistance zone (green) and we got not two but three legs up. In such a case one holds there long until market shows weakness. Many times a wedge top failure is followed by another wedge top failure especially when there is a lot of buying pressure. The general trend down has been broken. So best to trade long side now as opportunities present themselves. ...Pull backs..Bull flags...small wedge bottoms in form of bull flag..sideways triangles breakouts to upsides...etc

 

[volpri]

I'm back. Took a look at what transpired while I was gone. Here it is with some explanation. In my previous post I said trade long side..bull flags..small wedge bottoms that were bull flags (i.e. small wedge bottom failures),...triangles B.O. to upside etc. I see the market kept going up giving long opportunities and even establishing a new support zone. Another zone may be forthcoming also soon. But until then one would buy dips into the last support zone. We have a little over 1 hour left before close so we will see what happens.

 

[volpri]

Another view. Got to go back to project. A great day for longs.

 

[murray t turtle]

It's not just simply looking at charts; you have to slighty understand the reasoning or rationale behind it.

And understand that trading is Part Art, Part Science -- Each new day is a unique ratio between the two.
It truly takes a skilled trader to succeed the shorter the time frame

While in investing for the long haul, you're almost Guaranteed that the SPY/DOW/SPX will Never go down.

%%
True, time wise.
But really , with that in mind, OK, factor in 1929, -31..... 1973, 1974..... 1987,2000-2002, 2008.Another problem, Mr Trade Superstocks has huge [sad]single stocks risk; my comments were mostly about market risk. I also used a play on words- ''shorter time frame''

 

[mpdxc]

OP, I hope you were not trying to trade earnings "learning" from Warrior Trading. They are total scam artist.

 

[Money Trust]

It's not just simply looking at charts; you have to slighty understand the reasoning or rationale behind it.

And understand that trading is Part Art, Part Science -- Each new day is a unique ratio between the two.
It truly takes a skilled trader to succeed the shorter the time frame

While in investing for the long haul, you're almost Guaranteed that the SPY/DOW/SPX will Never go down.

If you wanna over complicate things by claiming that you need to know why a thing is happening, that's on you but what I stated works for me.

 

[SoesWasBetter]

I am not a coder (i am an eyeball discretionary trader) but i would imagine the following could some how be automated. I draw support and resistance zones (not one line but two) on my chart. That is, two for resistance and two for support. I draw several different colors from previous days action and the present day as price action unfolds. The newer and latest zones change as they are dynamic. That is I move them as price moves. This is more true in trends. I also use patterns...wedges..flags..triangles..etc but I correlate these with the zones. For instance, i see a wedge bottom (reversal pattern) taking place. If it is happening in or near a support zone that increases the odds of it being a viable wedge bottom. So....to get better trade location i proceed to catch a falling knife (i know..i know..that is breaking the rules) but I am willing to take that chance that since the wedge bottom is at a support zone it has a higher probability of working. So to get a better position in my trade I won't wait for confirmation (also breaking the rules of many guru's) but i will enter long when price gets in the zone. Here is my reasoning. If i wait for confirmation price often will give a reversal signal after a wedge bottom is made and one takes the trade only to find the next couple of bars go back down and stop one out. However, if i am "in the trade" before the whipsawing then I have a better position and if it whips back to to my support zone my stop will keep me in the trade because my stop also has better location. If the wedge bottom is gonna work it will be pretty quickly coming. By getting in via a falling knife I am " "in the trade" early, so to speak. If the pattern succeeds then a fringe benefit is I immediatley have more profit as price moves in my favor than if i had waited for confirmation before taking my long position. Does this make any sense? I will try to post an example from todays trading. I am sure some smart coder could figure out how to make zones be dynamic and change automatically and code entries based on PA patterns taking place at or near those said zones. Does it fail? Sure sometimes it will fail and price will slice through the zone like a knife in hot butter. But then my stop will get me out. However, by buying the falling knife I increase my odds of winning because of a better entry location and better stop placement and I improve the odds of a bigger profit. Here is an example. Study it. Same principle applies all to PA patterns on the long side or the short side. I'm sure a programmer can figure out how to program the core concepts. I'm too old and fossilized to learn programing...LOL.

It's called a paragraph and I've heard it highly spoken of.

 

[Telepuzik]

Consider it a gift, might not seem right now, but instead of having little loses when you do wrong thing, you will remember this mistake for life. What you can do next time, if long stocks, buy Puts to hedge.

So true.

 

[MarketAddict]

Another view. Got to go back to project. A great day for longs.

Hey nice trading volpri!! I trade this way every single day.. It requires a lot screen time and back testing to understand how to trade this way.. Some people think price action is silly and stupid.. But I'm cool with that.. More money for me!!