Try the simple and make it for you ~
Cable Update (GBPUSD)
- #606,683
- Jul 2, 2021 10:18am Jul 2, 2021 10:18am
Anyone watch volume at H4 ? I see some4thing nice there haha
- #606,685
- Jul 2, 2021 10:47am Jul 2, 2021 10:47am
- Joined Jun 2010 | Status: Trader | 16,699 Posts
ITB - Seeing Orderliness amongst 'Randomness'
- #606,689
- Jul 2, 2021 11:11am Jul 2, 2021 11:11am
- Joined Jun 2010 | Status: Trader | 16,699 Posts
ITB - Seeing Orderliness amongst 'Randomness'
- #606,690
- Jul 2, 2021 11:13am Jul 2, 2021 11:13am
- | Joined Jun 2019 | Status: on vacation | 1,726 Posts
- #606,691
- Jul 2, 2021 11:13am Jul 2, 2021 11:13am
- Joined Dec 2017 | Status: Trader | 30,688 Posts
yes yes yes
- #606,692
- Jul 2, 2021 11:23am Jul 2, 2021 11:23am
- Joined Aug 2018 | Status: Research Analyst | 4,292 Posts
Data + Stat + Risk/Emotions Management
- #606,694
- Jul 2, 2021 11:44am Jul 2, 2021 11:44am
https://lh4.googleusercontent.com/JQ...dOvvBHkFUwzAsJ
Introduction
In trading, as in life, we formulate conceptual structures that are simpler than the complex phenomena they are attempting to account for, the 5 element theory is no exception to this. Many traders construct elaborate fantasies to shield them from real-world complexity, but as a product of fantasy their plans are doomed to fail as some aspect of the real world not considered makes itself manifest. Failure of our plans dysregulates our emotions necessarily and generates anxiety. Many traders strive to maintain the structure of their no longer valid beliefs, instead of facing the complexity of their experience voluntarily and gathering new information to recast and reconfigure the structure of their thoughts and plans.
Five Element Theory asserts that the world changes according to the five elements - generating or overcoming relationships. Generating and overcoming are the complementary processes — the yin and yang — of Five Element Theory.
In spite of the association with astrology and fortune, I find the 5 elements theory practical and useful. Before I would have derided it as magical nonsense. A complex irrational system of fantasy.
Creative exploratory action in the face of anomaly and chaos, and faith in process, are central to the 5 element system, which unites both ideas into a single framework for renewing the world.
The 5 elements is a whole system, a series of interrelated frames or ‘phases,’ which makes it easier to understand and then make constructive use of change, instead of striving to maintain the structure of your no longer valid beliefs - evidenced by loss, emotional dysregulation and anxiety.
When we are outside of our comfort zone, at the far right edge of the market, or when we are exploring ideas from outside our ‘system’ which increase our vulnerability to complexity, it is useful to have such a framework for voluntarily exploring new situations.
Generating processes promote development, while overcoming processes control development. By promoting and restraining, systems are harmonized and balance is maintained.
Generating Interactions:
The generating interactions of the five elements are like the conception, gestation, birth, and nurture relationship between a mother and a baby. Such element pairs are deeply attached, and together imply success and luck.
The five generating interactions are fueling, forming, containing, carrying, and feeding:
Wood fuels fire.
Fire forms earth (volcanoes, ash, etc.).
Earth contains metal.
Metal carries water (buckets, pipes, etc.).
Water feeds wood (trees, plants, etc.).
Overcoming Interactions:
The overcoming interactions of the five elements are like the acts of hostility between two sides in a war.
The five overcoming interactions are melting, penetrating, separating, absorbing, and quenching:
Fire melts metal.
Metal penetrates wood (chopping, sawing, drilling, nailing, screwing).
Wood separates earth (tree roots breaking up soil/rock).
Earth absorbs water.
Water quenches fire.
We can see that in a novel trading situation characterized by fire we can use water to control and extinguish the fire. For example, if the market surprises us with speed and opportunity, pulling us into action, we may have the wisdom and memory to react, changing our position or otherwise ‘cooperating’ with the market, however wisdom and memory may serve to warn us, to widen the moat, or do nothing at all should we get burnt. At this point the earth tactics of control, distance and positioning have come into play; and then the wood element concerned with feeling, using calm, maturity and experience to wait for a better timing; and finally metal as we reach a conclusion with confidence, knowing how to protect our account, or use the markets power, and so on.
The 5 elements make it easy to remember, cooperate and find the information we need, to be active and not fixed.
Each element grows the other, and can control the other.
Although I do not like to trade fast charts like the 5m, these charts are characterized by fire, they are very fast and it can appear impossible to get advantage. In theory, the water element can stop the fire and water means to use changing, reaction and cooperation, which are exactly the right attributes a trader needs to be successful in this kind of environment. However, I would add that water also represents wisdom and memory - so don’t trade in a fire!
Interestingly, the earth phase follows fire and is also useful in this environment, earth can rest beneath fire, which means using distance, control and position. Together with the water element, earth helps the trader adapt to this difficult trading environment.
The trader is faced with many environments, both internal and external, and is extremely vulnerable to all. No matter how fierce the traders' fire is, the market is fiercer and hotter. The trader has a small pile of money, the market has mountains, and can move mountains. The market flows like water, and the trader has to swim or drown. Somehow, the trader has to not only manage complexity but face it with courage, to explore voluntarily and creatively.
It is my belief the process framed by the 5 elements theory makes it easier for the trader to perceive relevance in all trading situations, to discover creative solutions to the problems inherent in trading and make better decisions. The process is similar to Edward De Bono’s Six Thinking Hats, which uses distinct ways of thinking for a limited time to generate tactics for a particular issue.
This way of thinking and doing is incompatible with ‘scorched earth tactics’ and will help to get long term advantage by avoiding doing anything really stupid. Fire and earth trading is unsustainable over the long term, those elements are controlled by water and wood!
https://lh5.googleusercontent.com/V9...DHonOotKcnb3Lg
- #606,696
- Jul 2, 2021 12:01pm Jul 2, 2021 12:01pm
- | Joined Dec 2008 | Status: MMA Pro Wrestler | 17,549 Posts
{quote} Bingo! Good weekend all.
1.38000
I come from the future.
Karen X Mas Bonus 2025 All Time Profit:
$15,104
- #606,697
- Jul 2, 2021 12:08pm Jul 2, 2021 12:08pm
- | Joined Dec 2008 | Status: MMA Pro Wrestler | 17,549 Posts
{image} I practiced martial arts years ago (groan) and came across this theory then. This is just for fun, a supplement to any serious plan, but someone might find it useful… Sorry it’s long - it’s only a 1/3 of what I actually wrote if that’s any consolation! Introduction
for sharing this, who knows, maybe next week I will become like Aang (Avatar - The Last Air Bender). Need to bald my head first.
I come from the future.
Karen X Mas Bonus 2025 All Time Profit:
$15,104
- #606,699
- Jul 2, 2021 12:25pm Jul 2, 2021 12:25pm
- | Joined Dec 2008 | Status: MMA Pro Wrestler | 17,549 Posts
{quote} Me trying to scalp over 100 pips a day
Good luck.
But if you wear this T Shirt, it will fly .......
I come from the future.
Karen X Mas Bonus 2025 All Time Profit:
$15,104
- #606,700
- Jul 2, 2021 12:27pm Jul 2, 2021 12:27pm
- Joined May 2020 | Status: Best trader ever to exist ever | 10,701 Posts
{quote} That's possible, but have to break the trades into several parts ans one trade at a time. Good luck. But if you wear this T Shirt, it will fly .......
