Real Time Price Action- Clue to Puzzle?

[zeon]

	Quote:	DbPhoenix
	Which signifies what?

Strictly speaking that momentum is changing... slowing down, which was visible on the chart by the sideways movement. And, if I understand the posts in your blog correctly, it signifies a reason to exit longs.

Nonetheless, momentum has just picked up again and we jumped higher 5 points.

[DbPhoenix]

	Quote:	zeon
	Strictly speaking that momentum is changing... slowing down, which was visible on the chart by the sideways movement. And, if I understand the posts in your blog correctly, it signifies a reason to exit longs.

In and of itself, no, it doesn't. You may want to review them. Or become acquainted with Sperandeo.

[zeon]

	Quote:	DbPhoenix
	In and of itself, no, it doesn't. You may want to review them. Or become acquainted with Sperandeo.

I vividly recall you saying something along the lines of "the trader has several ways of determining to exit: a breach of the trendline or wait for a break of the last swing low; there just aren't that many possibilities".

I also remember you saying "I’m going to draw a supply line and use a break of that as a signal to exit."

As for Sperandeo, I know the 2B rule and his definition of trend reversal... and I take it that's what you are refering to. Sorry if I wasn't entirely clear, I didn't mean to say a reversal was taking place.

[DbPhoenix]

	Quote:	zeon
	I vividly recall you saying something along the lines of "the trader has several ways of determining to exit: a breach of the trendline or wait for a break of the last swing low; there just aren't that many possibilities".

True. There aren't all that many possibilities.

	Quote:
	I also remember you saying "I’m going to draw a supply line and use a break of that as a signal to exit."

Every day? All the time? Under all circumstances?

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	As for Sperandeo, I know the 2B rule and his definition of trend reversal... and I take it that's what you are refering to. Sorry if I wasn't entirely clear, I didn't mean to say a reversal was taking place.

So you haven't seen any shorting opportunities today after all?

[zeon]

	Quote:	DbPhoenix
	True. There aren't all that many possibilities. Every day? All the time? Under all circumstances?

No, not every day. But it was either a warning signal in anticipation of exiting the trade when the last swing was breached.

	Quote:	DbPhoenix
	So you haven't seen any shorting opportunities today after all?

I'd probably should have said this, but when price breaks through an important area of resistance (or support if it's on the downside) I tend to look to entries with the trend. Otherwise I just short resistance or buy support. For example, if the day opened around 1325, I would have been on the lookout to short 1330. We opened way higher, so the odds were that this "gap" was going to be a continuation higher.

[zeon]

Es

1349
1357
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1367

[DbPhoenix]

	Quote:	zeon
	I'd probably should have said this, but when price breaks through an important area of resistance (or support if it's on the downside) I tend to look to entries with the trend. Otherwise I just short resistance or buy support. For example, if the day opened around 1325, I would have been on the lookout to short 1330. We opened way higher, so the odds were that this "gap" was going to be a continuation higher.

I don't recall you mentioning any of this earlier. You appeared to be looking for shorting opportunities all day.

[zeon]

	Quote:	DbPhoenix
	I don't recall you mentioning any of this earlier. You appeared to be looking for shorting opportunities all day.

I'm sorry if that was the impression you got. I did focus on finding the elements that are components of the setup I earlier described. As I don't have a real strategy to handle trending days, I try to steer clear from them. I'm either 'in early' or out for the whole day.

Perhaps I should illustrate this by a short signal yesterday (just an observation, I didn't act on it) at 1330 resistance. Price was making higher highs and higher lows (annotated x'es on the chart) along the way but there was no break. Are you saying 'xxx' would not constitute as a short entry then, because the demand line is not broken?

[DbPhoenix]

	Quote:	zeon
	I'm sorry if that was the impression you got. I did focus on finding the elements that are components of the setup I earlier described. As I don't have a real strategy to handle trending days, I try to steer clear from them. I'm either 'in early' or out for the whole day.

However, you didn't mention any of this at or before or after the open. Since you could not have known in advance that this was going to be a trend day, that's not a factor.

The point of a RT thread is to discuss what you're doing and plan to do in RT. To go back and say that the probabilities were for a "continuation higher", particularly when you never went long, doesn't count.

	Quote:
	Perhaps I should illustrate this by a short signal yesterday (just an observation, I didn't act on it) at 1330 resistance. Price was making higher highs and higher lows (annotated x'es on the chart) along the way but there was no break. Are you saying 'xxx' would not constitute as a short entry then, because the demand line is not broken?

Yesterday doesn't count either. If you're unable to act in RT, that's fine. But that's what you need to work on. You can't trade hindsight.

[zeon]

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