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It's not a question of being precise and perfect. It's a matter of locating support and resistance accurately, then monitoring traders' behavior when those levels are approached. If one monitors that behavior in terms of where a bar closes, then he is inserting one or more filters between what is happening and his perception of it.
If one can't read the signals, it's most likely because he's trained himself to focus on bars rather than on price movement |
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Hi Db
I have quoted above from 2 different posts you have made - and could have picked a couple more. There is something you are saying that I would like to focus on - if you are willing to elaborate.
First, in what specific ways are you " monitoring traders' behavior when those keys levels are approached." ?
Second, if I hear you correctly, you choose again and again to focus on
market flow, and not dwell on a particular bar interval or bar close. That makes sense.
If I interpret
VSA correctly and can oversimplify
VSA, then "
market flow" is composed of a balanced interpretation of what is happening in the background as compared to what is happening as the current bar forms.
Can you elaborate some more on how you read "
market flow" as price approaches support and resistance?
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One determines an expectation according to the information that is available to him at the time he determines the expectation. In the next instant and the following instants, more information becomes available which may, all or in part, change the expectation, all or in part. |
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I don't want to over complicate this. On the other hand, I don't want to miss what you are saying.
As you approach a "decision point," is there some over-riding anchor point from which you are interpreting this constant flow of new price information?
When you say to yourself, - based on this new flow of information - my earlier expectation is not developing. Or when you say to yourself, my earlier expectation is developing. What are the decision-time "signs of flow" that you are looking at ? Are there specific signs that must be in place?
Is your "decision time" interpretation of flow any different than the classic
VSA signals - such as volume, range, close, prior swing highs, etc that are discussed so much on this board?
Picking up on on one of Eiger's recent posts, our brains [ emotions ] are "hard wired" and vulnerable to odd behavior at "decision time" - and especially vulnerable when facing a constant assault of new information.
Rodney