Rainbow Patterns/Observations

+2

-7

+7

made it back..

Like always, great charts and explanations Nathan!
Really clear and consistant.
Thanks!

Brent

lol...thanks man.

Hi Nathan,


I find your journal enlightening. Although LT espouses screen time, screen time, and more screen time - I do find seeing others' examples gives [me, at least] new insights.

Mac screenshots are very refreshing (not that I use a Mac), there is just a different quality about them.

I won't hinder the flow of your thread anymore. Thought I would let you know that this is another person who is benefitting.


Thanks,

Magnus

p.s. You're spot on about people becoming/getting what they think about. Everyone has examples of this in their own lives, but somehow fail to see (or just don't want to see it because they would then have to admit taking full responsibilty for where they are)

You're not "hindering the flow" of the thread...lol. "Charge on...contribute" as LT says

About the positive thinking stuff...I make myself write 3 pages of whatever comes to mind every morning and this exercise points out so much that I would normally call coincidence, etc.

It amazes me almost every day, when I realize something that happened, that at the time I couldn't see why, but looking back....it's all synchronicity...the secret, whatever you want to call it.

I could go on for hours lol.

Anyway, thanks for posting

This is kind of redundant now as I was going to attach a chart earlier today for your journal but OandA froze before I managed to grab it. Now, I forgot that that happened and now have nothing to post, bugger!

It was just an observation. I will give a little descripton incase you have a chart from today, or maybe something to watch out for... ...although can't remember when either...

5-second chart, off-peak hours.

Price was ranging about 20 pips, then became steadily tighter until it was ranging about 5 pips (over about 10-20 mins, can't really remember).

The key was that it was at a round number ***.50 or ***.60 level and you could see the wave getting tighter and tighter like it was going to burst...

Then *pop*, to the downside, grabbed 6 pips.

Only 6? Yeah, but in hindsight (obviously!), I should have been out before it reversed as it was off-peak hours.

It stuck out 'cause, as I mentioned in main thread, I am trading every ripple of every wave for experience - but this stuck out a mile!!

It was basically a breakout of sorts, you finding any of this kind of stuff?

Actually, maybe this is not the kind of thing I should be on the lookout for(?)

Just concentrate on crosses etc...


Anyway, it's true, a picture does say a thousand words! Will try and find another example in the coming days...


Cheers,

Magnus


p.s. I remember earlier this year, I was sitting in a cafe and decided to start writing things down that came into my head. Was an amazing experience. Wrote about 30 pages in a notebook. It was wierd, as I was writing stuff down that I didn't even know I knew. All these things were clicking for me... Think I will give your 3-pages in morning thing a whirl... Could even do one for trading every so often...

Yeah, a picture would help LOL. I think I know what you're talking about though.

I don't know whether I would have taken that trade...because, like me and Andrey were discussing, sometimes one thing will work very well and then its a disaster after that. I'm starting to get to a point where I can "feel" when it's going to work out and when it's not...so, like I said, I would have to see the chart LOL.

I can't say whether it was right or wrong. I remember sending charts back and forth to Linuxtroll and asking "am I doing it right? what about this? what about that?". He said "As I always say, don't listen to anyone's opinion, even mine. Do what works for you. LoL "

It was very frustrating, but I feel more confident in my trading now. I appreciate that he doesn't give us specific entry/exit rules. If you follow Stan's posts, you can see how he has his specific way to trade the rainbow. From what I understand, he is doing very well now. However, his way doesn't work for me, so I have to do it my way.

My point being what Linuxtroll said, "Do what works for you." Hence, the screen time. I admire that you are trading every wave...it will pay off. The biggest thing that helped me though, was getting my mindset right...like I was explaining in the other thread. It helps when your wife is a psychologist LOL.

Nathan

P.S. yeah, the writing in the morning really helps. I got that idea from a book called "The Artist's Way". I have done so much spiritual/psychological growth work completely unrelated to trading and it's all coming full circle now to where it's crucial to my success as a trader.

Im about to post some charts from last night. These are very good examples of "what is it doing consistently *today*?"

Ive got some other stuff to do but, here in a few hours I will have them up

Trades for Tuesday (10/9/07)

-12 pips total

Explanation after charts...

-3

I exited because of LT's 6 minute rule.

+6

Should have stayed in the last trade LOL

-7

Technically this was a good entry...however, I knew better than this. Price was too choppy and the wave was already developed.

-8

Perfect example of how something works one day and doesn't the next. I will explain in a minute.

Here is the one minute chart during all these trades(except for the first)....

OK, after the first pullback on the one minute chart, I go enter a trade thinking it's going to break resistance and take off...but price is clearly saying it isn't in the mood to do that today.

This is what I'm talking about when I say "What is it doing consistently *today*?"

It's making significant pullbacks with every move up, so why would I go place a trade thinking it's going to act any different?...and then get out when it does pull back, which it clearly said it wanted to do?



So, I hope this is self explanatory because I'm having trouble trying to explain it.

My lesson out of this, is once again, to trade according to how price *IS* acting right now.

I'm still not sure how to explain what I'm trying to say. If it's confusing, just ask and I will try to explain my thought process here.

I reckon I understand.

Was making a decent number of trades today - just for the experience - and there was definately a bit of, "Price is moving up, BUY; price has re-traced, COVER; LOSS! Price moving up again, this time for sure, BUY; re-trace again and COVER! another LOSS!!.. and so on..."

I think a fair analogy may be the pairs' mood for the day...

It can be said that each pair has it's own personality of sorts.

I would definately say that with a personality comes the capability (or should that be inevitability) to have a mood.

Mood swings would thus be a by-product of such a thing.

Today, as can be seen on your 1-Min chart, eur/jpy was just being stubborn :


Magnus

Yes, exactly LOL.

I have come to a point where most days I can recognize the mood and trade accordingly but my mindset was not right last night.

I am actually pretty excited about my losses because I understand what was going on, I guess and it's not one of those, "oh, this doesn't work" kind of thing.

Hi nhallmark,

Keep up the chart posts. I learn so much from them.

Out of curiosity, why have you chosen the 10,20,30 WMAs vs the more aggressive 6,12,18,24 WMAs?