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Joined Nov 2010
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Status: Peace be with all
|139 Posts
Hi Plasma
Thx for sharing. What your chart showed doesn't look like WMD's s/r/bo strategy but diagonal price movement strategy he montioned in post #33. Can you tell me where is this strategy described & explained?
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Joined May 2008
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Status: do i look confused?
|616 Posts
Pips,
the method is more then s/r pullback. understanding price movement is the beginning. after that wmd says u need to give price a meaning. that is what trendlines do. i have had the privilege of learning directly from wmd for the last few months. every thing is learnt by doing. draw your lines, watch price behaviour at the line and recognise what it is like if it is going to hold or if it is going to breach. expect this behaviour to repeat.
here are some basic principles which are enough to keep anyone out of trouble.
1. trend is the direction of trendline
2. know if your trade is trend or counter trend before taking it
3. if price is rising expect it to rise more
4. if price is falling expect it to fall more
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Joined Nov 2010
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Status: Peace be with all
|139 Posts
Thx Plasma for sharing. I used to trade trend channel. Found that it is safer & more profitable to trade with the trend, not against. When with trend, time is on my side.
How I envy you for the oppor of learning directly from WMD. Cld you tell me more abt the price behavior at trend lines, S & R lines... etc to determine if it is to hold or breach. My understanding is limited to candle patterns like bullish/bearish engulfing, pin bar, morning star, evening star, shooting star, hammer, inverted hammer, piercing...... only.
the method is more then s/r pullback. understanding price movement is the beginning. after that wmd says u need to give price a meaning. that is what trendlines do. i have had the privilege of learning directly from wmd for the last few months. every thing is learnt by doing. draw your lines, watch price behaviour at the line and recognise what it is like if it is going to hold or if it is going to breach. expect this behaviour to repeat.
here are some basic principles which are enough to keep anyone out of trouble.
Thx Plasma for sharing. I used to trade trend channel. Found that it is safer & more profitable to trade with the trend, not against. When with trend, time is on my side.
Ignored
issue isn't about prefering to trade trend or not trading counter trend. its about knowing before u take the trade that it trend or counter trend, knowing when something that started as counter trend has turned in to trend (or not) etc the reasoning is that knowing before you trade will effect how you come out of it. counter trend, be quick to take pips, and quick to kill if its not looking right. trend, show a bit more patience. close when trend changes.
Cld you tell me more abt the price behavior at trend lines, S & R lines... etc to determine if it is to hold or breach. My understanding is limited to candle patterns like bullish/bearish engulfing, pin bar, morning star, evening star, shooting star, hammer, inverted hammer, piercing...... only.
Ignored
draw a line, watch how price behaves..... (there are some basic examples earlier in the thread). theres no shortcut for this. early on i was hoping to be spoon fed signals but once you been following the man for a while you'll realise that the most he does is give you a well drawn chart and then asks you to give it meaning yourself. first you have to learn to think, then you can learn to trade.
issue isn't about prefering to trade trend or not trading counter trend. its about knowing before u take the trade that it trend or counter trend, knowing when something that started as counter trend has turned in to trend (or not) etc the reasoning is that knowing before you trade will effect how you come out of it. counter trend, be quick to take pips, and quick to kill if its not looking right. trend, show a bit more patience. close when trend changes.
Ignored
I see what you meant. Understand.
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Disliked
its not hard, just harass him.
Or I harass you? Don't see him around here.
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draw a line, watch how price behaves..... (there are some basic examples earlier in the thread). theres no shortcut for this. early on i was hoping to be spoon fed signals but once you been following the man for a while you'll realise that the most he does is give you a well drawn chart and then asks you to give it meaning yourself. first you have to learn to think, then you can learn to trade.
3 behavors I used to look for: (1) candles get progressively shorter as price gets near TL or s/r lines. But this did not prove to be reliable. Yes, price may rebounce when this happens. But it may also continue its original direction after a temporary slow down. (2) wait for 2 consecutive candles in lower timeframe (M15) with lower highs & lower lows for turning down or higher lows & higher highs for turning up. (3) less stringent than 2, wait for 2 consecutive candles to close on same side of the line.
Please comment & tell me more behaviors to look out for & study.
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Joined May 2008
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Status: do i look confused?
|616 Posts
there are good lines and bad lines
draw a tl however you would draw it.
expect the line to hold, so price needs to bounce inside.
if price doesn't bounce it means the line is in the wrong place. adjust the line.
if price bounce, first sign is that it should run from there. wmd gave an example early in the thread. if u look on small timeframe like 1m you will see it and learn to recognise it. when you have pull back on the run you can trade it.
after a while you will know how to draw lines connecting proper points, you will have positive expectation that line will hold, and from the strength of the run you will know if the move will be big.
then you put bop and tl together, you have 2 reasons why money would buy and sell.
Yes. And there is often more than 1 way to draw the lines. What I wld do is to observe price behavior when it approaches the lines.
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draw a tl however you would draw it.
expect the line to hold, so price needs to bounce inside.
if price doesn't bounce it means the line is in the wrong place. adjust the line.
if price bounce, first sign is that it should run from there. wmd gave an example early in the thread. if u look on small timeframe like 1m you will see it and learn to recognise it. when you have pull back on the run you can trade it.
M1 timeframe? I seldom use it. I use M15 most of the time.
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after a while you will know how to draw lines connecting proper points, you will have positive expectation that line will hold, and from the strength of the run you will know if the move will be big.
then you put bop and tl together, you have 2 reasons why money would buy and sell.
In the coming posts i will explain a simple approach to deciphering price action which should make a useful addition to this thread. I call it the Simple Accuracy Method or Deadly's Lil' Sister.
Twas said that in Gordium, by the Temple of the Zeus Basilica, was an ox cart, which had been put there by the King of Phrygia. The staves of the cart were tied together in a complex knot with the ends tucked away inside.
No one had managed to untie the knot for over a 100 years.
Legend said that whoever was able to release the knot would be successful in conquering the East. To the East lay the Kingdom of Persia, the rich centre of the civilized world.
Enter stage left, Alexander.
He was obviously going to give it a shot. After struggling for a while and probably feeling embarassed in front of his generals, he asked the temple priest 'Does it matter how its done?' Getting a nod, he then pulled out his sword and cut through it.
Twas said that whilst Christopher Columbus was sitting in a drinking den, he was challenged and informed that like Columbus, 'any adventurer with the wit and resources such as men of Spain had could have discovered the New World as Columbus had done'.
In response, Columbus had an egg brought out, and bet his guests that they could not make the egg stand on its tip without assistance. (A proposition bet... just like on The Real Hustle).
Puzzled, and eventually failing, they returned the egg to Columbus, who then slightly flattened the tip of the egg against the table, giving it a flat surface upon which to stand. 'Any adventurer could have discovered the New World once they had been shown how!'
That is the legend that is the Egg of Colombus.
(Not as rivetting as the Gordian Cut, but still feels relevent)
If prices are rising, Sam expects that they will rise further; and if they are falling, Sam expects that they will fall further. Sam gives preference to continuation over reversal.
Sam is aware of history, but not hung up on it; so Sam doesnt trade history.
Sam lives in the here and now, not in the what's been, so Sam trades momentum and gives precedence to the current wave, not the last.
