Db's Cajas Famosas

[DbPhoenix]

I posted this Friday before the open to show what I was looking at from a macro viewpoint.

However, I did not post what I was looking at from a "micro" viewpoint (the circled portion, above), so that is provided here. Since today is Sunday, this is of course what I'll be looking at tomorrow morning (I'm going to wait to box in Friday's activity until I see whether it becomes nothing more than a V reversal or it fills in and becomes a trading range).

In terms of Wyckoff, what all this illustrates are the trading ranges (the shaded rectangles, similar the the MP "Value Area"), the support and resistance that they provide (whether at the extremes or throughout the trading zone), the midpoints of these ranges (which represent the "equilibrium" level which price seeks -- similar to the MP "POC" -- and which help gauge strength or weakness when price either breaches or doesn't breach these levels), the levels at which demand and supply enter the equation (blue=demand, pink=supply), and the overall "stride", or trend. Hinges are also plotted when they occur.

[brownsfan019]

I'm sorry DB, help me out - where exactly does it say here what you are doing tomorrow in terms of actual trades? I'm really interested to follow your new area and per our discussion here, I came to the thread you referenced but my simple mind did not find where you laid out the actual trading plan for tomorrow.

Something simple for us simple minds would be great... example:

I will short if XYZ happens.

I will go long if ABC happens.

Just to eliminate any confusion, that's all.

[DbPhoenix]

If price rejects 40, I'll go short. If it gets there and hovers around that area without rejecting it, I'll look to go long if price breaks through. Ditto at 10. If it doesn't do any of this, I see no reason to take a trade at all. A lot depends on what the volume looks like at the test, if such a test takes place.

I should also point out that only one other person trades the NQ intraday, so I probably won't be posting this stuff more than once a week. Gassah, on the other hand, trades EOD and may address that elsewhere.

Edit: Nic has now initiated his EOD thread.

[brownsfan019]

Does the instrument being traded matter? I mean, do the ideas carry over to the ES, YM, etc? If so, I don't see why it would matter who else is actually trading along with you as the important part here is to see actual trades being done. IMO that is where most threads fall short - failure to provide actual, real-time trades.

We've both seen those magical, after-the-fact journals over at ET and it would be a nice change to see a forum area here show real trades with real traders being done.

As a new person to your concepts, that would be vital to me - seeing the book stuff reproduced in real-time with real trades. I'm an admirer of your work DB and I would like to learn more, but I know for guys like me, the proof is in the pudding. And here, the pudding is providing REAL-TIME analysis and trades, not after-the-fact charts.

Thanks for sharing and entertaining my ideas.

[DbPhoenix]

The purpose of the thread is not to show what a great trader I am, or nic is, or whoever. It's to explain W's approach and how to apply it. If after going through the thousands of posts and charts and examples an interested newcomer to it still has no idea how to locate support and resistance or determine the trend or locate a lower high, then I've wasted my time.

Firewalker and wasp have initiated a real-time trades thread that has attracted several participants. Perhaps that's what you're looking for. I personally don't learn anything from the "short at 40, stop at 41" type of post, but a lot of people enjoy that, and that's great. But as for teaching somebody how to trade, that requires more time and effort, and I myself can't concentrate on my trading when I'm typing messages to people. For one thing, I just don't have the spare real estate on my screen.

As far as detail, I've already provided more than James did with "all in at ES 1400", but I haven't heard anything since. If you want more detail than that, perhaps you could be more specific as to just what it is that you're looking for. Do you have no idea what to look for when price approaches support or resistance? Or do you just want me to tell you if and when I've entered a trade and at what price? Whether the trade succeeded or failed, would that tell you something about me or about the approach? If I fail to use candlesticks appropriately, does that mean that candlesticks are crap?

I've explained in detail ad nauseum what I look for. I could be extremely mechanical (short stop-limit two ticks below the bar after a single print at 40 with a stop one tick above the bar blah blah) but what is there to learn from that? Either I take it or I don't, but either outcome is my choice and says nothing about the approach.

There are approaches that make little or no sense, and we needn't name names. If this approach makes little or no sense to you, I can try to provide specific answers to specific questions. If all you want to know is where I've gone short and where my stop is, I can do that, but I don't know what anybody is going to learn from it.

If none of that is satisfactory either, there are two weeks' worth of real-time application with suggestions for entries and exits in my blog. And if even that is not enough, perhaps nic can provide what you need.

[erierambler]

	Quote:	brownsfan019
	Does the instrument being traded matter? I mean, do the ideas carry over to the ES, YM, etc? If so, I don't see why it would matter who else is actually trading along with you as the important part here is to see actual trades being done. IMO that is where most threads fall short - failure to provide actual, real-time trades. Thanks for sharing and entertaining my ideas.

Even then someone else could trade differently using the same ideas as Db or who follows the principles of Wyckoff. I trade the ES. I took a short position at the end of Friday's trade , looking for weakness to present itself this morning with the reasoning that the high of Friday was already a test and the close was a lower high. Should price hold here this morning I will get out quick. So you can't get any more real time than that, for now. I would get back in the trade on the test of the high. I can attest to Db's trading acumen as to what he says he trades as I have been in a trading room with him.
erie (who doesn't reveal too much of his trades)

[brownsfan019]

DB - as my post said, what would be a great compliment to what you've done here is provide real examples from real trades. You've laid the groundwork with all the theories and book ideas, now letting us see how this works in a real-time environment is the next logical step IMO.

That's it. That's all I was saying. The groundwork is laid, now show the reader how and when to apply this in real-time to the markets. That would be the next logical step in the education process, would it not?

And like I said - it would provide some substance that many forums simply do not - the art of actually trading.

[DbPhoenix]

Assuming that you'd like to know more than where I entered the short and what my stop is, what would you like to know that is not included in the Dailies in my Blog?

[firewalker]

	Quote:	DbPhoenix
	Firewalker and wasp have initiated a real-time trades thread that has attracted several participants. Perhaps that's what you're looking for. I personally don't learn anything from the "short at 40, stop at 41" type of post, but a lot of people enjoy that, and that's great. But as for teaching somebody how to trade, that requires more time and effort, and I myself can't concentrate on my trading when I'm typing messages to people. For one thing, I just don't have the spare real estate on my screen.

As my name has been mentioned, I'd just like to say that I agree that the posting of live trades will most likely not help anyone else to trade profitably. In fact, I'd rather suggest against using it to learn how to trade, because there's no point in following what anybody else does, or did, if you don't understand the "why". But all that has been laid out here.

[DbPhoenix]

Again, this thread is not about How I Trade. It's about support and resistance using my "boxes". Those who are interested in RT trades can visit the TL chat room. Those who are interested in trading plans, sorry. Those are do-it-yourself. If you don't know how to create one, see The Trading Journal and The Trading Log.

The following chart is of the ES.

The story is not just in the trading ranges nor in just the trend or -- if it forms -- the trend channel. The trading ranges, or PV "clusters", tell you where traders are finding trades and where the extremes of each of these zones are. The trend, or "stride", tells you how strong or weak the overall movement is and also warns you of potential changes in strenghth or weakness, i.e., changes in momentum.

Here, for example, price struggles to move higher with regard to vertical movement, but it's also hugging the trend/demand line. It can maintain this course for quite some time, but it clearly is not as exuberant as it was.

And the micro: