I don't think I'll have a good night sleep until I figure all of this out.
So from last night I have been categorizing different patterns into buy or sell in relation to a specific context of course because it's not all black and white, there's so much grey to be studied in depth - the little nuances and small differences can change the whole dynamic.
There's still more work to be done and to study categorize the patterns I have collected more in detail. But I think I'm slowly starting to look out for these patterns - I am starting to recognize them when they form.
As for my mental map as I've been saying all along I start out with
a. Bias determination - this is done by analyzing the terrain the high's and the low's
b. Level detection - in line with the bias I look out for prominent levels for entry
c. Live observation - this is where the actual work begins when Frankfurt session gets going , I look out for any new developments as price action progress candle by
candle
d. Timing - self explanatory *
e. Exit - lets leave that out for now.
I'm just trying to create some kind of a structure to process past data and incoming information and eventually make an accurate decision I think these all make up an essential part in making that decision and coming out with gains each and everyday.
For now I'll touch upon just a few I've had time to explore in-depth. Lets start with bias determination as I've said in the AM well before Frankfurt open I scan the 5m chart otherwise the terrain. I'll try to gauge the general direction by HH HL, LH LL well thats very general, and I know that. Thats why I'm going to discuss things more in detail.
a. Bias determination
1. uptrend impulse wave characterized by HH HL
2. downtrend impulse wave LH LL
3. up range no new low with previous HH HL still intact
4. down range no new high with previous LH LL still intact
5. uptrend correction wave HH HL intact but lower resistance (local)
6. downtrend correction wave LH LL intact but higher support (local)
7. up -> down transition change of direction HH HL --> LH and eventually LL
8. down -> up transition change of direction LH LL --> HL and eventually HH
So there're 8 scenarios that I'll have to consider when I am scanning the terrain. I know words will not be sufficient to fully describe the differences between say uptrend correction wave to up-> down transition change of direction LH and vice versa. And it can't be memorized by simply looking at a written description like this so I'm not actually sure if this will help me to progress in that area. Nonetheless I'm at least trying to organize my thoughts.
I've been thinking all night long and as soon as I woke up "how do I differentiate uptrend correction wave to up->down transition change of direction LH and vice versa ? I've been thinking and thinking and also have been looking at charts trying to find visual cues to lead me to one or the other ?
I wouldn't say I'm top of that - but I've noticed some settle differences - now I'm not 100% sure if that's good enough of an information for me to be able to accurately identify one from the other. But for now its better than nothing and I am making a progress. That's all it matters.
Now if I can get past this level - or master this live observation part will be solved as well as they're pretty much the same thing but one is analyzing past data the other incoming information.
As for timing I think this is where my pattern recognition collection
should come in for rescue I'll call it a collection and these patterns should also confirm my bias/live observation findings. Okay now I am making sense to myself. These thought are getting some organization !
So from last night I have been categorizing different patterns into buy or sell in relation to a specific context of course because it's not all black and white, there's so much grey to be studied in depth - the little nuances and small differences can change the whole dynamic.
There's still more work to be done and to study categorize the patterns I have collected more in detail. But I think I'm slowly starting to look out for these patterns - I am starting to recognize them when they form.
As for my mental map as I've been saying all along I start out with
a. Bias determination - this is done by analyzing the terrain the high's and the low's
b. Level detection - in line with the bias I look out for prominent levels for entry
c. Live observation - this is where the actual work begins when Frankfurt session gets going , I look out for any new developments as price action progress candle by
candle
d. Timing - self explanatory *
e. Exit - lets leave that out for now.
I'm just trying to create some kind of a structure to process past data and incoming information and eventually make an accurate decision I think these all make up an essential part in making that decision and coming out with gains each and everyday.
For now I'll touch upon just a few I've had time to explore in-depth. Lets start with bias determination as I've said in the AM well before Frankfurt open I scan the 5m chart otherwise the terrain. I'll try to gauge the general direction by HH HL, LH LL well thats very general, and I know that. Thats why I'm going to discuss things more in detail.
a. Bias determination
1. uptrend impulse wave characterized by HH HL
2. downtrend impulse wave LH LL
3. up range no new low with previous HH HL still intact
4. down range no new high with previous LH LL still intact
5. uptrend correction wave HH HL intact but lower resistance (local)
6. downtrend correction wave LH LL intact but higher support (local)
7. up -> down transition change of direction HH HL --> LH and eventually LL
8. down -> up transition change of direction LH LL --> HL and eventually HH
So there're 8 scenarios that I'll have to consider when I am scanning the terrain. I know words will not be sufficient to fully describe the differences between say uptrend correction wave to up-> down transition change of direction LH and vice versa. And it can't be memorized by simply looking at a written description like this so I'm not actually sure if this will help me to progress in that area. Nonetheless I'm at least trying to organize my thoughts.
I've been thinking all night long and as soon as I woke up "how do I differentiate uptrend correction wave to up->down transition change of direction LH and vice versa ? I've been thinking and thinking and also have been looking at charts trying to find visual cues to lead me to one or the other ?
I wouldn't say I'm top of that - but I've noticed some settle differences - now I'm not 100% sure if that's good enough of an information for me to be able to accurately identify one from the other. But for now its better than nothing and I am making a progress. That's all it matters.
Now if I can get past this level - or master this live observation part will be solved as well as they're pretty much the same thing but one is analyzing past data the other incoming information.
As for timing I think this is where my pattern recognition collection
should come in for rescue I'll call it a collection and these patterns should also confirm my bias/live observation findings. Okay now I am making sense to myself. These thought are getting some organization !
...
