I didn't know everybody was using that, or, if so, why. Maybe those who did will see this. Or you could ask them directly.
Wyckoff's Monster
- Thread starter green.green
- Start date
I didn't know everybody was using that, or, if so, why. Maybe those who did will see this. Or you could ask them directly.
I think they are using it because of this chart...
Ah. That's because your upper limit is too high. If you refer to my chart, the trend begins with the first two points and is extended. Therefore it cuts through the line that you're using as a support.
I guess (what's new) I'm still confused. We start with the channel I posted below formed by choosing the lowest low between our two highs. (I think I got this right).
On the 14th we fall out of this channel, on the 17th we make a new swing low. If we want to use this as our new swing low for our channel shouldn't we also chose the highest two swing highs which forms on the 21st? Is it that this is interacting well with price that we break the rules? At what point do we anchor the bottom of the channel off of the new low? (the 24th)
Thanks for the help.
That's fine, but if you're too rigid, then your mean is meaningless (no pun intended). The purpose of these trendlines and channels is after all to track the stride of price. If your lines are nowhere near what the stride becomes, they have to be changed.
See the following post and posts following (that one was intended): http://www.elitetrader.com/vb/showpost.php?p=3941835&postcount=282
Unconfused - thanks.
So here is a review of where we are again. Buyers we able to return price back into the major trend channel on the weekly. They were able to also push price back above 3638 which was a significant S/R level.
The downtrend channel on the hourly is still fully intact. and sellers are likely to get interested again around 3660. The market has a way to go before making a new high so its still anyone's ball game. On the hourly we see the same picture. Price looks likely to make the upper parallel.
On the minute chart we can see today's price action. Price was struggling to get above the midpoint of yesterday's hinge and finally probe above after 9:00. At the open price moved smoothly higher, broke through yesterday's high and then found support there before moving higher.
After making a swing high at 10:30 price spent the next 3 hours trying to move lower. It formed a range, fell out of the range and then returned to test the median and then made one more quick swing low. I held through the range but when price barely make a new low before it was rejected it was time to get out. (DTDB)
Price moved up for the rest of the day, creating a small range before breaking the day's high and moving up into the close. 5 sim trades and only 1 loser. All-in-all I felt like I was in tune with price for most of the day. Unfortunately there is no way for me to show my fills on the chart on this platform so I'll have to stick with arrows.
Glad you're picking up on TDTDB. It was a good sign that we weren't going lower.
As for your trend channel, keep in mind that few people know how to draw a trendline, much less a channel, largely because they don't know what either are for.
First, they must be drawn from the left. Once they are in, they provide valuable information about overbought and oversold conditions, conditions that most traders miss because they keep expanding their channels to encompass them.
Second, the limits aren't nearly as important as the mean. Fortunately there is a regularity to these limits and to the mean that isn't all that difficult to illustrate. But once you have what you think is the mean, look at how price behaves around it, if it bounces off it, consolidates at it (see, for example, how price behaved when it busted through the mean at 3600 this morning) . If price ignores it entirely, you may have to examine the pauses more carefully to see where the actual mean lies. Once you have that, you can verify the placement of the limits, a completely backwards approach to what's taught.
As for your trend channel, keep in mind that few people know how to draw a trendline, much less a channel, largely because they don't know what either are for.
First, they must be drawn from the left. Once they are in, they provide valuable information about overbought and oversold conditions, conditions that most traders miss because they keep expanding their channels to encompass them.
Second, the limits aren't nearly as important as the mean. Fortunately there is a regularity to these limits and to the mean that isn't all that difficult to illustrate. But once you have what you think is the mean, look at how price behaves around it, if it bounces off it, consolidates at it (see, for example, how price behaved when it busted through the mean at 3600 this morning) . If price ignores it entirely, you may have to examine the pauses more carefully to see where the actual mean lies. Once you have that, you can verify the placement of the limits, a completely backwards approach to what's taught.
Yeah - this whole concept (of starting from the mean and working "backwards") makes a lot more sense as I wrap my head around AMT. Hopefully AMT + SLA = ATM. Thanks for all your help. I'm glad that my misunderstandings are leading to more big picture clarity rather than less.
Also - not that it means anything but I haven't had a losing day in sim in 6 consecutive days. This includes plenty of places for improvement and several misclicks and a couple of "what was I thinking" moments. I feel like some things are jumping out now as price action unfolds.
I like inspirational quotes. I started reading "A Strategy for Daily Living" (Kiev) which I recommend to anyone looking to work on their mental game. Lots of good quotes so far (I'm on page 6 so I might pull the rec. later 
). My favorite:
"Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it." - Goethe
). My favorite:"Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it." - Goethe