A fresh start! Doji's Trading Journal

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pariah
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Postby pariah » Mon Mar 25, 2013 12:39 pm

Last few trades closed nicely.

In on EU now.

Didn't wait for bias. Volatile mornings won't give me the best entry price. Hit Dem area, in. +6 pips now.
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MightyOne
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Postby MightyOne » Wed Mar 27, 2013 5:21 pm

pariah wrote:Last few trades closed nicely.

In on EU now.

Didn't wait for bias. Volatile mornings won't give me the best entry price. Hit Dem area, in. +6 pips now.


"Didn't wait for a bias..." -pariah

The market is either above or below something at all times; it can be above and moving sideways or below and moving sideways but it is always of one direction or the other.

Support/Resistance does not support/resist anything at all; it ALWAYS FAILS and that failure lets you know the likely direction of the trend (expansion).

"...Volatile morning won't give me the best entry price..." -pariah

Your entry price means very little; it is all about the placement of your stop and how many lots you can buy before you take profit:

Image


Trading is not about entries, it is about POSITION (00) and LOT SIZE!

There is no measure of safety without space and there is no money without lots.

"...Hit Dem area, in. +6 pips now." -pariah

I believe it was in, the book, The New Market Wizards where there was a story about a technical analyst who was trying to explain to his superior that price should stop at x.

The superior replied by, basically saying "that's bullshit", picked up the phone and ordered the broker to short millions of xyz.

To the horror of the technical analyst, the market continued to drop & the superior said, "If I can do that, ANYONE in the world can do that".

-Something to think about :wink:

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Postby pariah » Wed Mar 27, 2013 6:17 pm

This is how I've interpreted the information.

Bias

Retrace

Confirm m15 (buy)

I"m concerned about the Supply area just up top there. Is price expected to break Supply given the h1 momo Bias? Advice would be welcome.
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pariah
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Postby pariah » Wed Mar 27, 2013 6:37 pm

Hi Mo,

I'm so new to these concepts that I haven't had time to process other ideas.

1. The terms 'position', 'adding lots' - that bizarre 'fib' indicator have no meaning in my limited trading world view as I'm currently struggling to grasp the concepts outlined in doji's thread.


2. To be honest, my only understanding of and which convey meaning to me of what over or under 'something' means - is supply or demand areas. If price closes over an 'area', price is expected to continue beyond that said area. I've coupled the idea of bias with the over under concept. Seems to be working...

3. The image you posted looks quite impressive, but it is as good as greek to me at this point in my learning. 'Space', 'adding lots' sound like things which would improve my performance. I will hopefully get that kind of understanding soon.

Thanks for all your help.

Zakk.

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Postby newscalper » Wed Mar 27, 2013 6:58 pm

I think Mo might be referring to support and resistance always at some point failing and that when to capitalise - close under something close over something - i.e. if you see down momo fail (is), with up momo, then you can go long. Are you trading continuation or reversal - you're always doing both depending on which TF chart you look at. Your only reference is you LIS and your position. Is it going u or down....both at al times, which is why I always get as confused as *censored - swear word* :lol:

It all depends on your point of reference. USJPY is a great example right now. MOMO on H4 is holdng and you can say 'trade the smaller timeframes short while it still holds. Great but you're trading right into an older supply level apparent on the daily and the daily is in a massive uptrend too. So by that reconing, it isn't down until demand on D1 fails and it isn't up until supply fails on H4. but if youre trading on the basis of H1 and less you've got room to get in and out between the levels.
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Postby MightyOne » Thu Mar 28, 2013 4:06 am

pariah wrote:Hi Mo,

I'm so new to these concepts that I haven't had time to process other ideas.

1. The terms 'position', 'adding lots' - that bizarre 'fib' indicator have no meaning in my limited trading world view as I'm currently struggling to grasp the concepts outlined in doji's thread.


2. To be honest, my only understanding of and which convey meaning to me of what over or under 'something' means - is supply or demand areas. If price closes over an 'area', price is expected to continue beyond that said area. I've coupled the idea of bias with the over under concept. Seems to be working...

3. The image you posted looks quite impressive, but it is as good as greek to me at this point in my learning. 'Space', 'adding lots' sound like things which would improve my performance. I will hopefully get that kind of understanding soon.

Thanks for all your help.

Zakk.


http://kreslik.com/forums/viewtopic.php?p=68041#68041

pariah
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Postby pariah » Thu Mar 28, 2013 3:40 pm

Sitting here with my Grande Americano and everything just clicked.

I get it.

'All you need is a horizontal line'

'Bias'

'Space protects you'

'Lots get you there faster'


I get it.

Thanks again.
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Postby MightyOne » Thu Mar 28, 2013 5:49 pm

"Cut your losses short and let your profits" run should read:

Reduce your risk and maximize your lot size prior to the long term range expansion.

Lots don't simply "get you there faster", they are an ingredient used to create Space itself:

If you make 20 pips at 5 lots and TP w/ 1 lot then you have 25 space
(5/4) * 20
If you make 20 pips at 12 lots and TP w/ 8 lots then you have 60 space
(12/4) * 20

Picture of what this "extra Space" looks like on a M1 chart:
Image


A pip is a pip and we all trade the same chart (a trade is an entry on every chart), but we do not have to be at the mercy of a chart.

The greater your skill of manipulation the easier it is to make money.

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Postby dojirock » Fri Mar 29, 2013 4:01 am

News, from all your post, it seems to me that where your missing "something" (its just my guess) is knowing

and understanding bias still. It seems to me every time you think you see bias that you feel your trading

into another area, and from there it flip flops back and forth till you don't know what end is up? Am I close.

For me this was the hardest part to understand do to interpretation and the hardest part to teach. The things

I once thought I understood seemed to hold true to mentors statements but seemed to be so darn difficult

or seem like a riddle. Now knowing what I know, it also seems to fit what they had been saying all along, it

was just the interpretation that was wrong. This is why in my thread I try to explain in different ways. Its all

the same just different ways of explaining it. Believe me one day, something minute said will trigger

everything for you and others struggling now. Examples of this are the BB's, looking left, I don't trade the

BB's but it helps weed out all the bad areas that have no significance. MACD, same thing, blue line above

the waterline, histo's below the water line, look left....its showing areas.... Momo, zlines, same thing. It takes

Momentum to break and area and a zline, we don't enter until price zeros out. 123 entries, same thing it

shows areas. We must observe these areas to recognize them, once that happens then you can see them

everywhere with any indicator, because the lag, you look left..they are there, the indicators become a

confirmation if that's what you need. That's all they should be used for. Even ma lines where price comes

back and bounces off them, look left, its there. I was teaching a friend this week on the indexes, NQ100 and

ES I had showed him all of these things and he still has this look of confusion. This is one on one teaching

mind you, which is a lot easier than forum learning. He explains what he is doing back to me and he has all

the pieces but assembles them wrong. It came down to the bias. So I told him this, "Draw a line, a horizontal

line, on a given time frame".(he picked the hourly)"You can only go up 3-4 times that time period and that

is used as your bias chart".(2,3or 4 hr chart) "Look at your line. When price breaks that line to the upside,

go to the next step". (his horizontal line from the 1hr chart is now on a 4hr chart)The next step is at the

break and close, over that line, proceed to next step which is the entry time frame. What is the entry time

frame? Its always a time frame lower than your "line"time frame. Meaning, 30 min or 15 min, or 5 min. He

looked at me and got this big smile. It was the most wonderful thing when he finally understood what price

was actually doing. Why did it take that and not all the other ways I showed him? I don't know? Its different

for everyone! Why am I rambling now about this? Because exactly what I just said above to him caused

everything to click for him, I am hoping it will for you or someone reading this thread. To me the other ways,

MACD, BB zllines, seemed easier. I had my aahaa moment when pro showed me the bbs. Do I trade BB's,

no...but it gave the little piece of interpretation I had been missing for the way my brain is wired. This above

situation worked for my friend and he is 4 days running now with no losses... It is exciting for me as him to

see him accomplish this after 100k in losses and seminars and systems(which he has shelves full of)over

the last 10 years, to see him have success now at age 74. This is why I spend time teaching. This is why I

admire Mighty Ones abilities and time. This is why and how I pay it forward.



newscalper wrote:I think Mo might be referring to support and resistance always at some point failing and that when to capitalise - close under something close over something - i.e. if you see down momo fail (is), with up momo, then you can go long. Are you trading continuation or reversal - you're always doing both depending on which TF chart you look at. Your only reference is you LIS and your position. Is it going u or down....both at al times, which is why I always get as confused as *censored - swear word* :lol:

It all depends on your point of reference. USJPY is a great example right now. MOMO on H4 is holdng and you can say 'trade the smaller timeframes short while it still holds. Great but you're trading right into an older supply level apparent on the daily and the daily is in a massive uptrend too. So by that reconing, it isn't down until demand on D1 fails and it isn't up until supply fails on H4. but if youre trading on the basis of H1 and less you've got room to get in and out between the levels.
Image
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:D
It always takes Momentum to break Momentum!
"A small loss is just as satisfying as a large gain" -MO
"Sometimes we need to stop learning and start thinking...."
"Once you stack, you'll never go back!"

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Postby newscalper » Fri Mar 29, 2013 12:31 pm

Thanks Doji :)

That's a lot of writing :)

Yeah, I'm a dumb *censored - swear word* :)

OK.
Draw a line on H1 - what's the basis for drawing the line? A random line, big round number, support, resistance, swing hi/lo, supply demand, dragon line, momo failure, last bar open, close, high, low; what? :)


See H4 bar break the line and close to one side of it, yeah cool: any bar or a momo bar?

Drop to M15 to look for entry, OK but again, what: not defined - has to hit the line and limit entry, rat, what?
Basis for take profit? Return to previous high/low on which TF?

Higher timeframes? Trading into sup/dem levels on those? Disregard?

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