I was just looking at what MrScalper showed in his chart. How do you know how far to look back to determine a trend? And will that "trend" continue going forward? I have no idea. After the fact it is easy, real time is different, at least for me.
Why Is The Obvious Not So Obvious?
- Thread starter nysestocks
- Start date
So looking specifically at a chart sideways you can see something that is not apparent from the normal view? Or are you simply implying more generally we should change our perspective.
The question is..can YOU see anything different..or see something that you can not see in a "normal" view!
No matter how we look at data..if we can not make any sense out of what we see..then how are we to make an informed decision?
So..what exactly is a trend?
We all know the text book stuff..but what about the current situation..take the eur.usd chart..what caused the rush to jump in..as people..or programmes..do not act on "nothing".
What if there was a simple way to look at a chart..and see if the "trend" is starting..in progress..or ending!
If we look for patterns..are we not at danger of not "seeing the wood for the trees"!
Yes.. hindsight is always easy..but if you can see what is actually happening..then you know what will happen if you do not act..or react!
Of course..it is not as simple as just using stops..or reverse trading..for if you are in the wrong place..at the wrong time..then all the risk management in the world will not do you much good.
What if someone told you..there is something so simple..that not only would you not believe it..but you would not even bother to try it..and more importantly..keep doing it!!!!
Let me answer with a question.
If the current price is the same on every chart..then why should a different time frame be any different?
Did they jump in to cover the shorts that were initiated against that level before from July 11 to July 17? and possibly reverse positions to join the stronger side (the bulls)?
Interesting... but...
HOW simple can a thing be?
WHY wouldn't a person believe it?
WHY wouldn't someone try it?
MrScalper,
If my trading style is scalping, like most day traders (definition from Investopedia):
"Scalping is a trading style specializing in taking profits on small price changes, generally soon after a trade has been entered and has become profitable. It requires a trader to have a strict exit strategy, because one large loss could eliminate the many small gains that the trader has worked to obtain. Having the right tools, such as a live feed, a direct-access broker and the stamina to place many trades is required for this strategy to be successful.
Scalping is based on an assumption that most stocks will complete the first stage of a movement (a stock will move in the desired direction for a brief time but where it goes from there is uncertain); some of the stocks will cease to advance and others will continue. A scalper intends to take as many small profits as possible, not allowing them to evaporate."
Then, the obvious is very obvious to me from your chart(s): I don't want to predict, I want to react. How I react to price movement is the key to profitable trading. Of course the devil is in the details.
Thank you for your coaching.
Regards,
How do you peel a banana..and how does a monkey peel it..which was is easier!