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Applying Joe Ross Trading Methods

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Guest OILFXPRO
Hi, nice of you to post your log....what would also help struggling traders is if you would provide an approximate budget...so that they can have a realistic idea of what an effective education costs....

 

Thanks,

Steve

 

Priceless cause he can compound and be a billionaire .

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Speaking of S/R. I've long long being a serious advocate of S/R zones. However, in an attempt to learn something new I read a book that challenged the usefulness of S/R. I was gobsmacked at the suggestion! But I persevered with his exercise, and that is; open a chart and hide your price bars, draw some lines at random on the chart and now make your price bars visible. My world just fell apart. I often saw the same interactions on these random lines as I did on my S/R lines. Do the exercise a few dozen times, change the symbols, change the timeframe - same result from my study.

 

:doh: WOWSERS! :doh: :doh: :doh: :crap:

 

With kind regards,

MK

 

PS: The book is: The Art & Science of Technical Analysis by Adam Grimes

 

This logic is along the same lines as the argument that a randomly drawn chart will display all the usual characteristics of any price chart.If you buy that you buy this too.Or that you can trade profitably using a coin flip/random entry.

The fact is that it neither proves or disproves anything and even if it did...then what?

 

You have to have a basic theory as to how the market works and then devise a plan.

 

Now,if your theory is that big money is what moves the market and that they don't trade randomly,then it follows that they bought at a price zone(s) and they will wish to sell at a price zone(s)

It then follows (if this is your theory) that these traders will seek to defend their positions-price zones and that will result in leaving footprints on the chart.That is where the horizontal lines should be drawn.

Next- price bars miss out a lot of information.To only look at bar charts means there is a cumulative amount of info missing.

I won't go into a lot of detail here,but if you take each sequential swing and draw it by hand you will see price movement with a clarity that you cannot get on a bar chart nor a line chart.

A line chart does not show all the H/L's just the closing prices.A bar chart does not tell you which came first-the high or the low so hence you cannot see each sequential swing.Also note that it follows that this guys claim is then bogus from my point of view.(price info is missing within the bar in the first place- putting the bars back on random lines and "proving" something therefore is flawed)

In short,drawing by hand gives you a view of the market to a degree of clarity which,actually is quite startling.And it won't cost you a penny,it is free information.

Add the horizontal lines and...well,if the probabilities do not seem obvious to you at this point,and if the logical movement of price does not stand out to you at this stage,then I guess you're reliant on changing your view/approach to markets every time you read another book.This was my personal "wowsers" Each trader must do their own dilligence

Nothing in my post is meant to suggest that you do not know how to trade or that I have found the holy grail.Lot's of ideas will work,and hence why drawing horizontal lines first and superimposing price onto that will suggest exactly that.....but it sure ain't optimal.

Edited by mitsubishi

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Would you please define "sequential swing " I wish to ask you a question but need to be sure of how you personally would draw your swings first. Thank you.

 

hi there,

 

make sure you say the nickname of the person you are addresing to as otherwise you will most likely get no answer

 

TW

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Would you please define "sequential swing " I wish to ask you a question but need to be sure of how you personally would draw your swings first. Thank you.

 

Daily high to low,daily low to high,and any intraday swings that react to prev daily levels.

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hi there,

 

make sure you say the nickname of the person you are addresing to as otherwise you will most likely get no answer

 

TW

 

Yes,but perhaps better advice is to quote the person you're addressing,as the original post may be many pages back in a thread.That saves time for other readers and also if others can read the original post they may be able to give different views on the point(s)that were made,or ask more questions.

 

When are you gonna let me outta the dog house? :)

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Originally Posted by OILFXPRO »

Priceless cause he can compound and be a billionaire .

 

I think you posted in the wrong thread.

 

 

....In the wrong forum..to the wrong audience...with the wrong attitude..and definitely using all the wrong words,

He may be one of those guys who had the wrong parents,went to the wrong school,has the wrong friends,married the wrong woman,bought the wrong house,had the wrong kids..etc

I would think that for people like that,shaving is probably absolute HELL.That is why electric shavers were invented,so one is not forced to look in the mirror.One can keep on the move while shaving and keep looking for something that doesn't look like groundhog day.

Some people think that "wrong" is hindsight analysis.But a great many people can identify "wrong" in real time.A very useful skill to apply to trading....don't you think?

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