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DislikedPips,
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...Ignored
DislikedThx 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
DislikedCld 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
Dislikedissue 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
QuoteDislikedits not hard, just harass him.
QuoteDislikeddraw 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.
QuoteDislikedyour welcome
QuoteDislikeddraw 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.
QuoteDislikedafter 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.