Why Is The Obvious Not So Obvious?

[baron193]

her writing style and way of expression is the same on all the characters, perhaps with the exception of the original thread starter...but that is irrelevant.
what is relevant is that this bucket of shit as someone stated previously keeps getting churned over and over again and it is supposed to be for the benefit of traders in this forum...to make you think and find a different way to trade and become profitable.
Here is the thing, if you have spend time trading without improvement to the bottom line (profit) and you haven't changed anything in your trading using critical thinking and analysis of what is simple and obvious in a chart then reading what these five clowns are telling you won't change anything.

correct way to draw TL's, the retrace must make new high/low before you can use the two points to draw TL, and you re-adjust as a new retrace makes new high/low.
But that won't make you money, at least as far as i know.

 

[speedo]

I miss redneck

Yep, redneck was in a whole other league than the aforementioned.

 

[MrScalper]

her writing style and way of expression is the same on all the characters, perhaps with the exception of the original thread starter...but that is irrelevant.
what is relevant is that this bucket of shit as someone stated previously keeps getting churned over and over again and it is supposed to be for the benefit of traders in this forum...to make you think and find a different way to trade and become profitable.
Here is the thing, if you have spend time trading without improvement to the bottom line (profit) and you haven't changed anything in your trading using critical thinking and analysis of what is simple and obvious in a chart then reading what these five clowns are telling you won't change anything.
View attachment 176220
correct way to draw TL's, the retrace must make new high/low before you can use the two points to draw TL, and you re-adjust as a new retrace makes new high/low.
But that won't make you money, at least as far as i know.

That is "obvious" from your pathetic post..more text book rubbish

 

[MrScalper]

Yep, redneck was in a whole other league than the aforementioned.

It is "obvious" that the 3 stooges could not understand Mr Redneck

 

[MrScalper]

I noticed in the chart that you posted how you mentioned the various levels in the uptrend being respected in the downtrend. By this i imagine that you are regarding these levels as being support. If so, and if you are trading on the buy at support idea, you may, or may not, find the following posting I previously made in another thread of interest. The short of it is that IMHO there is no support in a downtrend that is anywhere equivalent to that in an uptrend, and can therefore not be expected to produce the same results. Any such so called support should be considered as being nothing more than just the previous low IMHO.
But excuse me if I misunderstood the intentions or meaning of your post.
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More than the question of working or not, the proper identification of support and resistance should be of greater concern. I have so often seen what IMHO I feel is one basic misinterpretation of support and resistance that would lead to failed or missed trades.

As in the attached, so many people refer to the lows in a downtrend, B, as support, such as S2, and the highs in an uptrend, A, such as R1, as resistance. The moves to S1 and S2 are completely opposite, with that to S2 being a move in the primary direction and that to S1 being a reaction. Therefore, the moves following S1 and S2 can not be expected perform equally. So for those who employ the 'buy at support and sell at resistance' tactic, treating both S1 and S2 as support will, as the OP questioned, be hit and miss. Also, for example, regarding R1 as resistance, rather than just the last high in the primary direction, may cause hesitation to buy before R1 is penetrated, resulting in a missed trade.

Additionally, using the white line as an example, looking for support at a low in the previous trend, S3, will not have a high probability of success as the forces at work at that price level are the opposite.

While the above is just basic TA, I've seen such misinterpretations so often that I thought I'd give my 2 cents, even though few will agree or be interested.

Support & Resistance is the most important thing to watch when trading..but not as regurgitated in textbook rubbish!!

I did say..that when even shown.. people would not "do it"..and that has not changed!

 

[speedo]

Skippy, these people will eventually view you as you are....a cliche ridden gasbag.

 

[ironchef]

Yes..you must be doing something right then

As for charts..I find it interesting how different things look when you look at them differently..of course everything is relative..and a lot depends on what your trading strategy is..and your objective. I continually experiment with new ideas..more so to keep the brain active though

What happened GILD today?

View attachment 176000

No skill at all, I was just lucky. In 2000 we used the profits/money to buy a house. We call it our Cisco house.

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1. Similar to what happen Jun 23?

2. Folks are waiting for tomorrow?

3. I intend to sit on my position.

Let me ask you a specific question MrScalper on a very specific case:

You asked me what happened to GILD that day and I told you. I also told you what I would do. So far my position in GILD has an unrealized gain of ~15% in about 1 1/2 months.

I like your opinion of what I should do based on the charts up to today. You don't need to give me detail explanations, just what you would do in this specific situation as I am considering exiting my position instead of keeping it as a long term investment.

Appreciate your comments.

Regards,

 

[MrScalper]

Let me ask you a specific question MrScalper on a very specific case:

You asked me what happened to GILD that day and I told you. I also told you what I would do. So far my position in GILD has an unrealized gain of ~15% in about 1 1/2 months.

I like your opinion of what I should do based on the charts up to today. You don't need to give me detail explanations, just what you would do in this specific situation as I am considering exiting my position instead of keeping it as a long term investment.

Appreciate your comments.

Regards,

Mr ironchef..the truth is I really don't have a clue what GILD will do next..but..if I was in your position.. depending on how much I am in profit..I would move stops up based on the monthly chart if investing for the longer term.

I am not following the markets closely at the moment..due to other commitments..but if I was I would watch for any changes in ES futures OI..and total volume levels for SP 500..to see if we are starting to run out of steam with this bull market.

Bond yields are rising with anticipated hike in interest rates..and I am starting to watch them from here on out.

You have the option of selling some GILD calls..but look at IV's first..and the model prices if you have access to same.

Final word.. current monthly chart shows no need to exit yet..but be prepared..as re-entry is but a few commissions!

 

[Buy1Sell2]

You do not draw boxes..

Correct --but you do--in hindsight.

 

[ironchef]

Mr ironchef..the truth is I really don't have a clue what GILD will do next..but..if I was in your position.. depending on how much I am in profit..I would move stops up based on the monthly chart if investing for the longer term.

I am not following the markets closely at the moment..due to other commitments..but if I was I would watch for any changes in ES futures OI..and total volume levels for SP 500..to see if we are starting to run out of steam with this bull market.

Bond yields are rising with anticipated hike in interest rates..and I am starting to watch them from here on out.

You have the option of selling some GILD calls..but look at IV's first..and the model prices if you have access to same.

Final word.. current monthly chart shows no need to exit yet..but be prepared..as re-entry is but a few commissions!

View attachment 176227

First of all, this is like a real time lesson for me. Your comments and chart pointed out the importance of MTFA:

By going to monthly, I can see that the breakout likely still have legs, so doing a trailing stop and ride the run up makes sense, provided I don't get stop out like on July 7 after the first breakout. Here is the 30 min chart. What can you tell me about it?

For a swing trader like me, combining the three time frame did tell me something? And your first sentence make the most sense if I set my trailing stop with a little more wiggle room. Also, I may sell some calls butI need to understand more of "the charts" and IV to place my covered calls.

I made this trade in June based solely on fundamental analysis for entry (my trading methodology). The charts are beginning to tell me a different way to trade. Thank you for all the comments from everyone.

All are welcome to join in to comment and make this a learning lessons for those of us trying to learn chart reading and find out why the obvious is not so obvious.

Thanks.