the ascending and descending triangle are also pretty reliable.
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YM Traders
- Thread starter volente_00
- Start date
Quote from Stalker:
You misunderstood me Movery. to the contrary, I strongly believe that it�s very important to incorporate s/r no matter what strategy you use. I�m just not sure how to use it all the time yet. Some situations are very clear, but others are still fuzzy to me. The only thing i�ve been watching for a month is s/r, price/volume and trend channels. When i said other information i was not refering to TA indicators but rather t/s, dom, tick, bid/ask volume or something like that...
best regards,
Stalker
Well, In that case I just must advise you to study all my previous charts... if you need me to send you all my charts, even ones with my mistakes I could arrange that.
It is tricky to identify S&R while live trading, I admit that I have had trouble doing this as well, but generally with knowing who is going to be in control throughout the day, you can trade safer and with less risk.
I know it is easier said then done, but I just hope you know that is possible, it isn't easy, but once you are able to do it, I think it is one of the most powerful tools available now. 2 or 3 months ago, I would have probably doubted S&R myself, as a matter of fact, I never even paid any attention to S&R... but now I have seen it working. I love it.
H&S are some of the most reliable patterns.
"Thats right folks, classic chart patterns and basic support and resistance is all you need."
100% right
100% right
Thanx,
you´ve all actually clarified some things for me now. I realise i should look more at "the big picture". I don´t know if "short sighted" is the right english word, but i realise i often try to interpret short moves that only lasts 10-15 minutes.
Gonna study formations for the rest of the weekend!
/Stalker
you´ve all actually clarified some things for me now. I realise i should look more at "the big picture". I don´t know if "short sighted" is the right english word, but i realise i often try to interpret short moves that only lasts 10-15 minutes.
Gonna study formations for the rest of the weekend!
/Stalker
Quote from Stalker:
Thanx,
you�ve all actually clarified some things for me now. I realise i should look more at "the big picture". I don�t know if "short sighted" is the right english word, but i realise i often try to interpret short moves that only lasts 10-15 minutes.
Gonna study formations for the rest of the weekend!
/Stalker
Yes, looking at longer terms like daily charts is a big help, and the past few days.
I personally haven't ever used chart patterns... so don't get TOO tied up in them.
I never ever trade chart patterns... at least on purpose because I don't know any of them, but if they are trully helpful if volente says, I might take a look, but I don't want to do anything to perhaps throw me off until I start trading real.
I just add things to the mix, if formations can make things a little clearer at days when price and volume is jumping up and down a lot, than it´s of great value.
Trend channels is still my nr.1 priority, they are very valuable when it´s trending good, you get amazing entries/exits. The downside is they are not as easy to use when it´s trading in range, thats why i also study s/r...
Trend channels is still my nr.1 priority, they are very valuable when it´s trending good, you get amazing entries/exits. The downside is they are not as easy to use when it´s trading in range, thats why i also study s/r...
..ok i posted a question earlier regarding how it was possible to know the market would break down from the point it did in your chart jm.
in simple terms how do we know its more likely to reverse than pullback and continue.
i thank you for your answer.however what i was getting at was the fact you can have great after the fact s+r and price action and volume reading.there is one vital ingredient missing...empathy which leads to understanding how other traders trade.to say that the market was making a strong attempt and the buyers gave up is too vague.at what point did you see thats buyers give up etc....what was the sequence of events that preceeded and followed etc .
i have attached 3 charts to show this and will now explain what happened on this occasion.
- the upthrust attempting the high of the day.first we can see that this was attempted on low volume compared to previous high push.this tell me that liquidity was low on both sides of the market.the ask volume was low right to the top and in fact.this is marked by the yellow line on the 1min chart.also note the gaps in the 1 min price chart.this shows me that there was more demand than the available supply at the time.note also the lack of profit taking in this push.basiaclly the end of the move was being bought by dumb money looking for the break of the hod.after dumb money enters the market what demand is still to come....none at this point....it is now an opportunity for the sellers to come in.but is the market ready to short from this point at the top...is there any more demand to come.i can also tell you that there were 158 net long contracts caught at the top between 81 and 85.but like i said is it ready to short from here?
-the first push down off the top.note the small time frame charts .on them you see white marked channels....this is the key here.what people look for in the market is always the obvious what happened...ie what volume was created.do you know whats just as important is what not happened.the channel i show was an opportunity for buyers...alte buyers to come back in...at this point we can see there is no more demand in the market.now is the time to enter as we can now see exhaustion in demand.however this is still gimme that sellers will come in.
- so what do we have now.to recap...a low liquidity market....so easier so one side to take control with aggression....a market which has also failed to show any more demand on its micro retests ....an aggressive move which fell short of the hod....amd 158 net long contracts short at the top.
....so what causes....firstly profit taking from the traders who can read these conditions....and scalpers seeing the opportunity to get in early under these conditions by reading DOM....so whats fuels the move next....the 158 contracts at the top strart dumping as they see the market increasing in velocity and adding to the very velocity they fear.....and so on..
.....note there is also a lot more i could point out in bid ask volume and such......you also have to consider the open interest and how the price action itself effects supply and demand of each trader group and so on.
attached are 3 charts for you...1min,5sec,50v
cheers mark j and continued success
in simple terms how do we know its more likely to reverse than pullback and continue.
i thank you for your answer.however what i was getting at was the fact you can have great after the fact s+r and price action and volume reading.there is one vital ingredient missing...empathy which leads to understanding how other traders trade.to say that the market was making a strong attempt and the buyers gave up is too vague.at what point did you see thats buyers give up etc....what was the sequence of events that preceeded and followed etc .
i have attached 3 charts to show this and will now explain what happened on this occasion.
- the upthrust attempting the high of the day.first we can see that this was attempted on low volume compared to previous high push.this tell me that liquidity was low on both sides of the market.the ask volume was low right to the top and in fact.this is marked by the yellow line on the 1min chart.also note the gaps in the 1 min price chart.this shows me that there was more demand than the available supply at the time.note also the lack of profit taking in this push.basiaclly the end of the move was being bought by dumb money looking for the break of the hod.after dumb money enters the market what demand is still to come....none at this point....it is now an opportunity for the sellers to come in.but is the market ready to short from this point at the top...is there any more demand to come.i can also tell you that there were 158 net long contracts caught at the top between 81 and 85.but like i said is it ready to short from here?
-the first push down off the top.note the small time frame charts .on them you see white marked channels....this is the key here.what people look for in the market is always the obvious what happened...ie what volume was created.do you know whats just as important is what not happened.the channel i show was an opportunity for buyers...alte buyers to come back in...at this point we can see there is no more demand in the market.now is the time to enter as we can now see exhaustion in demand.however this is still gimme that sellers will come in.
- so what do we have now.to recap...a low liquidity market....so easier so one side to take control with aggression....a market which has also failed to show any more demand on its micro retests ....an aggressive move which fell short of the hod....amd 158 net long contracts short at the top.
....so what causes....firstly profit taking from the traders who can read these conditions....and scalpers seeing the opportunity to get in early under these conditions by reading DOM....so whats fuels the move next....the 158 contracts at the top strart dumping as they see the market increasing in velocity and adding to the very velocity they fear.....and so on..
.....note there is also a lot more i could point out in bid ask volume and such......you also have to consider the open interest and how the price action itself effects supply and demand of each trader group and so on.
attached are 3 charts for you...1min,5sec,50v
cheers mark j and continued success
Attachments
Jmowery, what you drew on the chart were the lines for the patterns that I speak of. Had you know abotu them then you would have understood the odds were in oyur favor to trade long.