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So over since 6/29 we have been balancing between 19.75 and 76.00- establishing higher 'value' than the preceding months. You could also say that we could combine that with the current balance zone to form a larger area, but in fairness activity for me is interesting primarily on a shorter timeframe. I do look at both though to get an idea. Anyway. We've been back and forth through the balance VPOC of the current 1348.00 (which was rejected yesterday) quite a bit with 57.00 delineating upper balance activity. Yesterday we had a neutral day which straddled the main part of a long-term profile development and although we couldn't hold above 57.00 (which again was a great area to use) and the 58.50 held the high, a thorough test of the prior 3 day balance looked to have given us some impetous to the upside. Either way, we look to be coming to a crossroads imho. Do we break higher and explore prices up to current yearly high (1411.25 back adjusted high) or do we fail and move lower? Will the answer come imminently? With European issues unclear as is US QE3, there could be questions over what will happen. However, the central banks are all saying that they'll do whatever it takes to sort things out. So I guess the question is do the markets believe it or at least feel it's worth the risk? We'll see I guess :)

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Is this something you look at as part of your plan?

 

Yes, I look for candle stick patterns, still learning of course.

 

I look for candle stick patterns for reversals at resistance levels. Likewise for support levels.

 

But currently, counter trend trading (for instance looking for a short today) is not in plan. But lets say price drops to a support area, lets say 1366 which is r1 pivot I have, if I see morning star pattern, thats a some good evidence for a reversal at that support, in an intraday uptrend market. So I would take that risk.

 

Of course I am no expert here, just my thoughts on how I see it. Looking for short today has not even cross my mind. IMO

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Big impulsive move up off Draghi's comments points to 1375 today.

 

I meant to say ... in the near future or this week. And it is unfolding as expected.

 

Thank you Mr Draghi.

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Yes, I look for candle stick patterns, still learning of course.

 

You might notice that as price is trending it consolidates often at some key reference area ... then breaks out in the direction of the trend.

 

If you are trying to either get into the trend (re enter into the trend) as opposed getting in early and holding on ... or even if you are holding on and want to add to your position then I find it useful to look for these periods of consolidation and buy the low after a test - re test.

 

Imagine how tight a stop you can use at these cyan lines, say 1 tick in front on the pullback after first recognizing them (stop 4 ticks easily possible).

 

I call this my WALL setup. It works best on the ES. I use a 10K volume chart to see them but they are available on all timeframes.

 

I find candlestick signals too late for me.

 

attachment.php?attachmentid=30174&stc=1&d=1343410222

2012-07-27_1325_ES_10K_WALL_this_morning.thumb.png.eaeaf7b977801b606d86ba777d0cc25c.png

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This recent push up brought to you by Mr Draghi. Thank you Mr. Draghi. Keep em coming!

 

Wow, what a move. For the past three morning, I have been doing well with 1. asking myself are we in uptrend or downtrend for the day? If yes, i know i need to get on board 2. Pick a pull back to a support/resistance and get on board 3. find a price target to take profits.

 

So today, I woke-up and same process, trend of today is up from overnight. Just need to wait til news on Advance GDP q/q numbers come out. News came out and inline and market did not react negative to it, although numbers not improving.

 

Well, I hesitated and missed my entry cause i was thinking about this news that came out.

 

I guess lesson learned is stick to what the chart tells me and disregard the news. And follow the trend. I am kicking myself on this one.

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There are plenty of ways to get into the trend and keep getting into it. Don't ever think that "the market has gone too far, time for this or that" That type of thinking is completely counter to taking advantage of these trend days.

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This recent push up brought to you by Mr Draghi. Thank you Mr. Draghi. Keep em coming!

 

 

You was so right when you stated pick a trend a get on board cause anything could happen

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buy the low after a test - re test.

attachment.php?attachmentid=30174&stc=1&d=1343410222

 

Thank you kindly.

 

Just to understand better, do you mean if price test an area of interest and then retest again? In your chart price is doing that well.

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Thank you kindly.

 

Just to understand better, do you mean if price test an area of interest and then retest again? In your chart price is doing that well.

 

If you watch this type of chart you will see what I mean. When price goes sideways for a while it is the battlezone between buyers and sellers. I bet on the buyers in an uptrend - but I do sow at the low of the battlezone because my risk is small and my upside is the largest possible.

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If you watch this type of chart you will see what I mean. When price goes sideways for a while it is the battlezone between buyers and sellers. I bet on the buyers in an uptrend - but I do sow at the low of the battlezone because my risk is small and my upside is the largest possible.

 

Ok, i understand fully what you mean. Identify the low of the pull back and then wait for a retest of that low, then take the risk with a tight stuff. good risk vs reward. Makes sense.

 

Thank you

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You might notice that as price is trending it consolidates often at some key reference area ... then breaks out in the direction of the trend.

 

If you are trying to either get into the trend (re enter into the trend) as opposed getting in early and holding on ... or even if you are holding on and want to add to your position then I find it useful to look for these periods of consolidation and buy the low after a test - re test.

 

Imagine how tight a stop you can use at these cyan lines, say 1 tick in front on the pullback after first recognizing them (stop 4 ticks easily possible).

 

I call this my WALL setup. It works best on the ES. I use a 10K volume chart to see them but they are available on all timeframes.

 

I find candlestick signals too late for me.

 

attachment.php?attachmentid=30174&stc=1&d=1343410222

 

LOL, i was waiting for slowstoch 15 min to enter over sold. But joshdance warned me to forget about those indicator on days like this.

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Ok, i understand fully what you mean. Identify the low of the pull back and then wait for a retest of that low, then take the risk with a tight stuff. good risk vs reward. Makes sense.

 

Thank you

 

HERE'S A RECENT EXAMPLE

 

Buy it on the way back up.... after it doesn't take out the low and comes back thru using a buy stop entry. Exit at the top of the range ... or sell half and see if it breaks thru.

 

Don't try this without practicing it. The way to practice to get used to drawing horizontal lines on ranges as they unfold... and watch the price action.

 

You don't need no lousy stochastics... (said in a spittin sorta voice).

Stochastics are only good for divergences - not crossovers or oversold-bought zones.

And they ain't much good for that either. I'd rather use the $ticks.

 

attachment.php?attachmentid=30180&stc=1&d=1343415264

2012-07-27_1450_ES_10K_WALL_RE-ENTRY.thumb.png.36c01f2e498e268595ca6ed5725f14b1.png

Edited by bakrob99

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HERE'S A RECENT EXAMPLE

 

Buy it on the way back up.... after it doesn't take out the low and comes back thru using a buy stop entry. Exit at the top of the range ... or sell half and see if it breaks thru.

 

Don't try this without practicing it. The way to practice to get used to drawing horizontal lines on ranges as they unfold... and watch the price action.

 

You don't need no lousy stochastics... (said in a spittin sorta voice).

Stochastics are only good for divergences - not crossovers or oversold-bought zones.

And they ain't much good for that either. I'd rather use the $ticks.

 

attachment.php?attachmentid=30180&stc=1&d=1343415264

 

Thanks, I review when I come back.

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HERE'S A RECENT EXAMPLE

 

Buy it on the way back up.... after it doesn't take out the low and comes back thru using a buy stop entry. Exit at the top of the range ... or sell half and see if it breaks thru.

 

Don't try this without practicing it. The way to practice to get used to drawing horizontal lines on ranges as they unfold... and watch the price action.

 

You don't need no lousy stochastics... (said in a spittin sorta voice).

Stochastics are only good for divergences - not crossovers or oversold-bought zones.

And they ain't much good for that either. I'd rather use the $ticks.

 

attachment.php?attachmentid=30180&stc=1&d=1343415264

 

Excellent example for me to study. Thanks. This is where I struggle at on entry after price retrace. I have no problem drawing the horizontal lines on ranges. But its the price action knowing if price rejection on range or place to enter. You have any reference material for this subject?

 

So, for this example entry would be at 1378.75 on the price rejection bar with a 4 tick stop loss?

 

:)Yes, the indicators get in the way at times. Just adds more thought process.

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So, for this example entry would be at 1378.75 on the price rejection bar with a 4 tick stop loss?.

 

Yes. But each of these plays out slightly different. But your looking for a test and a breakdown which fails to find any sellers and then an entry as its going back into the range. Stop is tight. Load the boat up. Get onboard.

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