[gassah]

Originally Posted by Tannism »

" the the large move up that wasn't supported by volume and the next wave up that had disproportionately high volume "

Is this what is meant by comparative lifting power?

I'm not sure what this is?

[gassah]

SPY comes up to a high volume node (actually the volume POC) today from a composite started on 4/18 and gets rejected. How could W not use MP?

[DbPhoenix]

Originally Posted by Tannism »

" the the large move up that wasn't supported by volume and the next wave up that had disproportionately high volume "

Is this what is meant by comparative lifting power?

Not exactly. Comparative lifting or selling power precedes a consideration of volume. If one ignores this and relies on volume climaxes, he will find that volume climaxes aren't as common as he might expect, and he won't be trading much.

[DbPhoenix]

Originally Posted by gassah »

How could W not use MP?

He did. Just not in so many words.

[zeon]

Originally Posted by DbPhoenix »

Hello, sulong. Yes, materials and energy have been doing well, and that would be the place to look for longs when we turn.

I hope you don't mind me picking up this post from earlier in this thread. But why materials and energy? I probably don't know enough about fundamentals...

[DbPhoenix]

Why it pays to be aware of hinges:

[BlowFish]

Originally Posted by zeon »

I agree this sounds all very simple. But most books I read consider scaling out as a less profitable strategy in the long run. This strategy also assumes that you only take one trade a day and try and maximize it's potential. Which I fine I suppose as far as it goes. In trending days, this will keep you in the market with at least a small part of your position till the end. But in ranging days it might mean several stop outs at break-even. Perhaps it's just not possible to find a 'one size fits all' exit strategy.

On the whole that will be true, running analytics will show one exit strategy to be more effective from a pure profit point of view. However there are a couple of advantages to scaling out. Firstly psychological - a lot of people find it easier to manage a trade once it is 'paid for' by taking some of the position off (i.e. they can no longer lose). Secondly it will result in a smoother equity curve.

[Hlm]

Originally Posted by zeon »

I agree this sounds all very simple. But most books I read consider scaling out as a less profitable strategy in the long run. This strategy also assumes that you only take one trade a day and try and maximize it's potential. Which I fine I suppose as far as it goes. In trending days, this will keep you in the market with at least a small part of your position till the end. But in ranging days it might mean several stop outs at break-even. Perhaps it's just not possible to find a 'one size fits all' exit strategy.

I know this is a little off topic so I will keep it short.

I believe that many of those who scale out do it incorrectly. The market is extremely dynamic so you must be as well. In order to know where to scale out you must understand the time frames, S/R, Supply/Demand, etc that are around you. By knowing and understanding these areas you can estimate rough probabilities of them getting hit during certain situations. This will allow you to keep more on for trending days and take most off during consolidation days. I believe that the concept itself is somewhat "one size fits all" but how you measure these levels and create probabilities can vary dramatically.

Of course this is a more advanced way of thinking and takes lots of studying and screen time. This is why you find many newer traders taking a large portion off quickly at a fixed amount and then trailing a smaller portion looking for the larger trend. It's kind of a quick fix to the problem.

I also agree with what BlowFish said.