When do you label HH HL LH LL's

[murray t turtle]

[Most of QUOTE=EON Kid;3985555]All these patterns continuously repeat and .....

2) This is the main point - These patterns become high probability trades when you place them in the context of larger/longer term price action.

3) learning longer term price action ...... Like driving it is a skill you will develop after many many years, allowing yourself to take a snapshot of various information and then being able to project in time and anticipate the action of various vehicles.[/QUOTE]
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Good points,E-kid88

Free to swimshark;
I usually answer in public.Alan Farley said bulls [uptrends]live above 200 day moving average;;;;;;;bears [downtrends] live below 200 day moving average. William O Neil[IBD founder] used a 50 dma ,200DMA to figure out trend also. 10 year candle chart means even more when it comes to long term trend.

Wisdom is profitable to direct.

PS Free shark note;
note he wrote. Note he wrote bulls[uptrends= my word] live above 200 dma. Frankly a dip above or below 200dma does not m,ean much @ all .Note he wrote '' bulls live above 200 dma,;;;;;;; bears live below 200dma''.

 

[BobbiDigital]

Eon,

What's the difference between that green signal bar and the one 6 bars before it. Both hit support and closed higher? My thoughts are a wider spread and the extra distance it is away from the high. Basically we look for long clues around support and vice versa?? Hmmm

BD


[/B]QUOTE=EON Kid;3985563]lots of information on this chart, once you can read it you can take any long signal trigger on the smaller time frames.

"lots of information on this chart, once you can read it" - It looks simple and easy, I assure you it is not. It takes may years to put this information into context.[/QUOTE]

 

[EON Kid]

Eon,

What's the difference between that green signal bar and the one 6 bars before it. Both hit support and closed higher? My thoughts are a wider spread and the extra distance it is away from the high. Basically we look for long clues around support and vice versa?? Hmmm

BD

Excellent question. My simple answer would reveal to much. There's nothing complex here, just simple price action clues.
It is a really good little chart to print out and to keep questioning.
Now the long, may be good if you had a longer term TL or Fib retrace etc, but I'm not referring to that. There is a great deal of information in those candles or price action. I counted about 7 price action signals that I would say makes it a great long.

I'm not trying to be a guru here, I do emphasize simple clues.

That first green signal bar you refer to, it was a weak signal and good for the single bar scalps as can be seen.

 

[tom_czr]

I have never done this but think it could be beneficial for shorter term trading. If price does not take out HH you have a LH. Would you wait for the prior low to be taken out before labelling this LH or do you use a candlestick break? The former makes sense to me but would lag quite a bit while the latter would get cluttered in sideways action.

Thoughts? Thanks guy.

Free

You should do some statistical research and you will see, if it is better to "wait for the prior low to be ..."

These types on questions and answers from bunch of people (lot of them do not know how to regularly make money in markets) will not help you.

 

[freedomshark]

Thank you for all the replies...

Yes, once I began labeling market structure it's very clear that price does the same thing all day every day... doesn't suprise me that you are all saying there is no edge to be gained there, I'd have to agree based on my observations.

tom czr, what prior low are you referring to? A time based low that occured at least 20 five minute bars prior to current price? A low that contains market structure (4 points) within it? As is usually the case you can keep stretching back and find different context. I agree with your logic as no amateur trade would dare get long at a random point below support, etc.

How does one go about learning these 'outside the box' clues EON? Any reading material you'd recommend? Are they candle/range (distance)/longer term structure based? To me, your chart looks like a mirror move was made 2X the channel width. Does information like this increase probablility?

Much appreciated.

(world be) Free

 

[EON Kid]

Thank you for all the replies...

I agree with your logic as no amateur trade would dare get long at a random point below support, etc.

this is where you need some statistical research

How does one go about learning these 'outside the box' clues EON? Any reading material you'd recommend? Are they candle/range (distance)/longer term structure based? To me, your chart looks like a mirror move was made 2X the channel width. Does information like this increase probablility?

Much appreciated.

(world be) Free

Of the top of my head, Mastering the markets by Tom Williams has this section "Pushing through supply" which I have attached. Reading material like this helps you to start thinking like a trader, to see the clues you have to construct some logic behind moves. Start with old faithful 'Reminiscences of a stock operator'

Try to see what every other trader is seeing, thinking and doing. What signals have they triggered on ? where have they placed their stops. Group the sheep into different types of traders & trader time frames. What are majority acting & triggering on. You will need to make some educated guesses for each group.