[Praveensuri]

I would like to add one more point to my earlier question regarding the setup. I have drawn support and resistance lines based on a 30 minute and a 5 minute chart from the prior swing which is counter to the current swing that is currently in progress. This is similar to the zones you have shown in one of your posts which you make prior to the next week trading. The problem is there are so many lines that ultimately come on the chart, that I hesistate to pull the trigger at a pre determined support and resistance zone, if above or below that is another support or resistance which is couple of points away. In other words let's say my buy zone is at 811 and the right candlestick pattern has been formed on the 2 minute chart., I will hesistate to take the trade if there is a reistance just 2 points away, lets say in this example at 813. Logic being why bother for 2 points and incur an equal amunt of risk. Obviously sometimes the price goes through this zone with a wide range bar and other times it fails and comes back to test the low, when I start sweating.

So in this context I miss out and that is why right entry location at right price level within risk tolerencae is critical
Many Thanks in advance for your help.

[steve46]

Sir or Madam

Well I don't really have all the time necessary in this venue to respond properly...Here are a few ideas that might help you since you seem to want to do this "on your own"

First, your idea of how to find an entry does not correspond to mine....I would not be using your method....I look at many other details that are part of my pre-market analysis. Unfortunately since I am teaching a class I cannot go into the details in a public venue.

One thing I CAN say that may help is this....if you do as I do, and put all your supply and demand nodes in place, as you progress in time you will see that your charts become cluttered

I remove nodes wherever price shows that it has "taken them out" (crossed them without hesitation, closing above or below on the upside or on the downside)...those are removed

If you take a moment to remove those additional nodes, I think you will see that your chart is easier to read and cleaner.....

Finally I remove all nodes on Friday and re-place them over the weekend. I hold additional classes on the weekend so that I can teach my student how it is done.

I hope this has been of some help to you

Best Regards
Steve

[steve46]

Folks

Very shortly in the next day or two I am going to stop posting. I have a class in session and I find that I have very little time to answer questions. Also the folks I am trying to help deserve a little respect. So I will be stopping for about 18 months (the duration of the class)...

I hope this thread provide some help to those who are not succeeding with more traditional approaches.

Best of luck to all
Steve

[Chouca]

Thanks a lot for your effort and your insights from "the other side". For me it has been very valuable and gives more pieces to the puzzle!'

[CYP]

Steve - great posts (as many others have already stated). I've learned quite a bit. I wish I could have been part of your class. I know you have more knowledge to offer and I hope to see your return sooner than 18 months.

-CYP

[CYP]

Originally Posted by steve46 »

Well I can only talk about the way I was trained....The open is considered THE most important price within specific time periods....those time periods are called "time-based pivots" as I wrote in my thread on institutional trading. For each time period the open is the most important price. So the hierarchy is simple, for the year the opening price in January is the most important. For the quarter, that open is most important, for the month, the opening price on the first trading day is "it".......and so on....as each time period comes to a close, that opening price takes on more significance. Its really pretty simple.


Good luck in the markets
Steve

Edit...sorry...to answer your question. For me the weekly open is Monday at 6:30am PST

Hi Steve,

Speaking of the importance of the Open, I remember you saying something regarding the Institutional Traders' tendency to work their trades to ensure they are making progress in the levels they look at.

Specifically, you mentioned the idea of working towards the year-end bonus for institutional traders. So from a year-long perspective, that would entail a trading year from January until around October/early November where the institutions are trying to keep the prices above the January price. Then the slow unwind into the holiday season and then it all begins again in January.

So, to bring it to the monthly and weekly timeframes, the institutions are looking to justify and support their openings, whether monthly, weekly, or daily. All the fluctuations are used towards the year end results.

That's what I understood and remembered from your Institutional posting. Well, that, and the addition of the nightly market sessions and their affect on the next days open. I remember one of the guys trying to start a fight with you regarding DAX open times and things like that.

Anyway, am I somewhat correct in my assessment? I'm trying to grasp all this information without being too over-loaded.

Thanks again for all your posts.

Regards,

CYP (from San Diego)