DislikedI hate that one cannot search for "above" or "below" because they are too common for the ff search engine.Ignored
Here is what fti mentioned.
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Hi zoran,
"As above so Below" basically is a quote which the free masons used.
In reality, it was teaching from Jesus in the bible about the state in heaven and on earth. Read the testaments for details, I think you can find it in the scriptures , where Christ was asked about the kingdom of heaven. Christ was a wise son. If you cannot find it , ask, and I shall help you locate it.( and it shall be opened )
In the trading context, it is simply an expression that what exist in the Long Charts (daily, weekly, monthly) is much replicated in the Short Charts ( 5 min, hourly ).
I though we covered trading MO already.
The daily chart analysis is to set the stage for the strategies to be used , having the daily trend as the backdrop,( safety net , as Northpro put it).
In case, things got very hairy , we would have to depend on, that the "law of motion" doesn't fail us. Of course, if Murphy insist that his Law should prevail, then I guess, we're done, unless, we have enough muscle to overcome murphy by using the might of size.
I cannot see the rigidity in daily analysis. As you may notice by now that the dance is executed on the short charts, so the daily analysis task is done , once it sets up the trade backdrop for the day.
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Hi Sitoca,
Trading breakouts is a rigid methodology.
Waiting for confirmation of pattern development makes traders mindset rigid.
In the same, trading breakouts on the short charts is no different. Neither is trading breakout on bars.
"As Above so Below."
Rigidity may ease the traders needs for active analysis by defined rules but it impairs the trader to "feel" the development that is unfolding. The market is never ever the same, the waves of movement may look alike , but are never the same. Therefore nimbleness in methodology is paramount for long term success.
we need some form of feel or confirmation of the market patterns before we enter the market.
The feel of form, you get from monitoring the developments in the market. and not by setting up rules of engagement.This will restrict your ability to "pull the trigger" (in as well as out)when required. When a market begins to ready itself for a trend attack, there is always more than 1 sign, in reality there are many signals being given, and these sets-up the many types of rigid player, cueing them to the event. When most parties are in the same direction, only the egos will be left to bear the pain of the attack. Then the victors sort themselves out by a mode of musical chairs games (sweeps), and weeding out the weak players. The players who are weakest amongst the victors are rigid players. These gets to "take home the head and tails " ( borrowed from David_Green, thanks). The more rigid the MO, the weaker the player. There is no skill.
This is the reason why machines, cannot be made good traders, as there will be one or more magic bullet that will take it out, depending on the rigidty its MO. Similarly , if traders mimic machines, they will ultimately share the same fate.
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