[BlowFish]

Originally Posted by Bearbull »

There is enough material in the wyckoff forum (numerous threads and posts) and in the blog to enable you to arrive at some form of understanding of price action via price volume relationships.

Dunno I may be wrong but IC seems to have a pretty reasonable understanding already. I am sure that could be improved by a perusal of the resources you mention. However, a good understanding is only part of the equation, a solid plan is required too. That's the thing people seem to struggle with. And then of course there is experience too, one can have understand the principles while still lacking experience.

IC no hidden messages really, just thinking that if you had a clearer idea what you would do you in various circumstances you would find it easier to do

[HAKUNA]

Before a solid plan isn't it necessary to understand the price action

[BlowFish]

Indeed!! or at the very least recognise. IC seems to be able to recognise important elements but appears vague in how he plans to exploit that.

[DbPhoenix]

On the other hand, the OP may have decided that he does not yet sufficiently understand and appreciate how this market moves and would like to become more familiar and comfortable with it and with the traders who trade it before determining how to profit from it. This can take a considerable amount of time, and there's no hurry.

[icecool]

05/12/2008 (I refer it as yesterday – trading day wise) was an upthrust day. Today is an inside day. Volume is less than yesterday. Today’s close is on the lows, but nevertheless higher close if compared to yesterday’s close. Range is narrow. See daily chart



But a few words will be necessary with respect of today’s intraday chart. See 5 minute intraday chart.



Today price opened way above yesterday’s close, but within the range of yesterday’s daily candle. That huge gap was further pushed up in the opening minutes close to yesterday’s high and as buying climax was in the background, it was expected that today price will not overshoot yesterday’s high and even if there were to be any stop clearing exercise, the extent of move further up from yesterday’s high will be very limited to the extent of one or two rupees. (rupee is Indian currency). But once that opening candle closed, it was pretty clear that even taking out that opening candle (on the higher side) will be a tough task. I observed that it closed way of its high. This weakness was confirmed by subsequent candles. But it is interesting to note that a huge gap is still left open in intraday chart between 366 and 360. Will this gap act as support arresting further fall? If it does, then we have an interesting situation developing here. Up thrust candle (reference is to daily candle dated 05/12/2008) high around 390 as resistance and “key candle” (remember it?) resistance at around 350 which now acts as support. Next few days will provide important clues. What clue? i.e. whether the key candle will succeed in pulling the price down to the range created by it (i.e. range marked in the daily chart) or whether the upthrust candle will create another range by its high and low. In the second case there will be shifting of trading range (i.e. support and resistance levels) to a higher level. Battle is still going on between the bulls and bears. Lawn tennis lovers will remember the intense fight between the players close to the point. Deuce – advantage – deuce……. Fight goes on.

[Eiger]

Nice analysis, IC. You've got a very good handle on market movements. I especially like the lawn tennis analogy. I think trading in many ways is analogous to sport, especially tennis - at least the psychological aspects are quite similar.

Since you asked for assistance in your intial post, you might check out the VSA forum. It seems quite consistent with your style and how you analyze the markets. VSA is a practical and user-friendly method of assessing the structure or the market via the background, and a bar-by-bar analysis of the unfolding market. Many traders do quite well with it. It was developed by an individual who actively traded for a large trading house by accumulating and marking up stocks. There is a pretty good group of traders on the forum who post fairly often, including live trades.

Eiger

[icecool]

Hello friends,

I am truly overwhelmed by your response. I thank you all once again for helping me.

Bearbull,

Thanks for drawing my attention to valuable resources. There is lot of valuable information out there. I shall go through all of them as slowly as possible and as carefully as possible. I shall try to grasp as much as possible.

Blowfish,

You have drawn my attention to a very important aspect which I have been missing until now. I have been thinking and rethinking on your post. I shall definitely need your help. What I am thinking right now is to read tons of very important materials available in this forum, reshape my knowledge and then work out a method how to translate it in to a trading plan. A may continue with posting chart with very brief comments for sometime. But somewhere in future once I begin making trading plan, definitely I shall post them also along with the chart. I request you all my friends here to go through them and correct the flaws there (which shall invariably be there since I am new to trading).

Db,
As always your message is to the point and clear. I have to learn a lot. I am in no hurry. I shall try my level best.

Eiger,
Thanks for mentioning VSA threads. My friend who asked me to join this forum had asked me to join it for VSA and Wyckoff forums. Tons and tons of important lessons are there. I shall go through them slowly and carefully and try to grasp as much as possible.

Truly a great forum. Friends, keep helping one another. If you find that I am committing any mistake, please do not hesitate to point it out. I shall always try to learn from my mistakes and rectify them in future.

Thanks to all once again

[BlowFish]

Originally Posted by DbPhoenix »

On the other hand, the OP may have decided that he does not yet sufficiently understand and appreciate how this market moves and would like to become more familiar and comfortable with it and with the traders who trade it before determining how to profit from it. This can take a considerable amount of time, and there's no hurry.

Also very true.

Is it possible to truly know if you understand until you try and quantify things in a plan? I'm not sure of the answer to that. Is trying to quantify and test a thesis a good way of testing ones understanding? At some stage one needs to know when to take the next step. If there is any doubt its wise not to take it.

As the OP was talking about problems they have with trades they have probably gone a step too far already. I was suggesting they take a step back to examine their plan. Perhaps you are correct though, and they should back off further.