[JEHs]

Originally Posted by SIUYA »

comments if i may to inject thought into it....(my price levels are rough guesses)

The first trade you did enter long 2392.75, why did you not take profits at the resistance near 2395? Instead it got stopped out.
and yet the second trade you seem to enter at 2395.5 and take profits at 2397.5?
If following breakouts, then you dont want to take breaks near resistance, as they are likely to hold the first time, you want to take breaks of resistance, and you have to be clear in the levels of what constitutes resistance and support of course.
If you want to anticipate that a break will occur, then ideally doing that on a pullback from resistance the first time in a mean reverting instrument might be worth a go....very different to a failed break

Also it looks like you entered the first trade on a break out of the smaller frame, and the second on the break in the larger frame.....that seems a bit inconsistent???

(sorry I may be reading this incorrectly as I dont ever use tick charts, but from a first look it seems that way)

...lets see...
I don't know.
Yes.
Yup.
OK.
It depends, but, in general, I suppose so.

Thanks. I have much to learn. This is hard but I think, for the most part, I am moving forward...
.

John

[JEHs]

Originally Posted by Tradewinds »

I edited the chart from post #1 and commented on how I read that chart. Right after you got stopped out, price made two higher highs, then failed to go lower for 3 bars. That is what I would call a "Strength Up" move during a down trend. To me, that's a "Pre" Bottom signal. And what happened? Price bottomed, and it moved up. BUT, the price move up is not another up trend. It's a continuation of a longer up trend, after an extended retracement. That's why you would take long profit right after the price breaks over Resistance, and go Short. Scalp the Short trade, and wait to see what happens. What happened? Price dropped HARD and fast, that is what I would call, "Strength Down". And it's Strength down ON THE FIRST MOVE. It's critical to take into context what the overall picture is. Strength down on the first move down is confirmation of continuation down. No rule is 100% percent. That's why I don't just enter an order, and think that I know what is going to happen. I never know what's going to happen. But I can be flexible and adjust.

Those are my rules.

I think this is the stuff that confuses most of us who are trying to figure this out. I think you are trying to explain stuff that takes place on an intuitive level. I'm sure it all makes sense and probably some of it I am already aware of, but if I have someone constantly explaining stuff like this to me and try to understand it I would go nuts. There is to much for the mind to process at any given time.

It would be if someone was trying to explain how to throw a free throw by talking about force and trajectory, etc. There is something to be learned there probably but the only real way to learn to throw a basketball and get it in the hoop is to keep doing it. When it goes in you don't know exactly why, you just know that you are getting better at it.

I find I have been watching charts so long now that there are times when I just know what will probably come next. The trick for me is waiting for those times. As time goes on I'm sure I will see more and more of those areas, (many of which are probably the areas now that frustrate me because I don't know what is happening), but for now I need to go with what I can see...

...but I think, in short, what you are saying is, "trade what you see", which is generally good advice so I will take it as that. Thanks.