[joshdance]

Originally Posted by thalestrader »

Support/resistance is rarely a line or a pot so much as it is a zone or a bed - take a look at the line you drew and try to imagine a rectangle, i.e. a zone or bed of support with depth, not a mere line. If you see what I see, then you would likely change your opinion from "a soid support line which price broke" to a "bed of support which price tested and support help."

Best Wishes,

Thales

Thanks Thales -- I suppose we might say it broke the top of the zone, but found support toward the bottom of the zone in this case?

[Cory2679]

Originally Posted by thalestrader »

You should place your bet, and then write down what you see, and do it immediately - Are you going long or short? Is the trade a reversal, or a continuation of the preceding main trend? Are you really trading a sharp, clear 123 or is it more of a choppy consolidation with little to no distinctive swings? Where is the nearest support? Why do you feel it should be support? How do you expect price to act if and when it gets there? What will you do if it acts as you expected? What if it does the unexpected? Where is the nearest resistance? Etc...

You know, I think this could also be a good first step in my morning trading routine...before I even think about placing a bet...for each of my charts, write up my observations and attempt to answer some or all of the questions posed in the above quote.

Too often I find myself narrowly focused on the last few bars looking for a "123," and once I find one, then looking for contextual justification to take the trade...

[Cory2679]

Just wanted to drop a line to make clear that I haven't dropped off the map despite not posting any trades for a few days...I've been merely taking a little time to do some work (ie developing a new morning checklist, reviewing the thread, reviewing charts and practicing writing down what I see, etc.). I'm going to start my "four weeks" next week...I promise I'll be back full force next week trading consistently and posting every single trade...although it may not be until Tuesday due to the US holiday Monday...

EDIT: Hey, whaddya know...this my 1,000th post! I'm a "Master Trader" now! (hahaha)

[thalestrader]

Originally Posted by joshdance »

Thanks Thales -- I suppose we might say it broke the top of the zone, but found support toward the bottom of the zone in this case?

I would just say that it tested support, and support held. Had it pierced the lower limit of that support (zone), then we'd have had a break, and if that break was quickly reversed, we'd have a 2B (though I like 2B's better when they occur at a swing high or swing low, rather than somewhere is the middle of the last important swing).

Best Wishes,

Thales

[Cory2679]

Potential EJ short...

[joshdance]

This is not to influence your trade decision--please take your short, and IMO it does have that look like it may want to roll over and fall a bit based on the recent activity, but here's a line that other traders may also see, just posting your chart with another perspective.

[Cory2679]

Originally Posted by Cory2679 »

Potential EJ short...

UPDATE: Profit for the first half, break-even for the second...

[Cory2679]

Shouldawouldacoulda EU long...I'd had that level of support marked since this morning anticipating a long opportunity, but being later in the day I think I'd somewhat tuned out and written off the chance for another trade today. Oh well...we can still watch and see what happens...

UPDATE: Wow...would have been a quick loss...