NCA 2: THE CHARTBOOK

[IgazI]

Every situation isn't going to be rosy, so let's look at a problem.

If you used 3 or 2 ranges here then you gave back a healthy number of pips, that's just the facts. . .pip evaporation happens even to day traders.

A close over a range is the minimum that you would have needed to see before initiating an exit strategy;

- first break (1st arrow)
- second break (2nd arrow) / 'stop profit' order

both are acceptable in this scenario where price went from posting small ranges to making a very large range with the sudden drop.

Use three ranges as the default, identify the scenario where you might use a particular variant, and then be at peace with the result.

Use what works 'most of the time' most of the time:

mini_mums.png (89.34 KiB) Viewed 2401 times

[Jhx]

Every situation isn't going to be rosy, so let's look at a problem.

If you used 3 or 2 ranges here then you gave back a healthy number of pips, that's just the facts. . .pip evaporation happens even to day traders.

A close over a range is the minimum that you would have needed to see before initiating an exit strategy;

- first break (1st arrow)
- second break (2nd arrow) / 'stop profit' order

both are acceptable in this scenario where [b]price went from posting small ranges to making a very large range with the sudden drop.

Use three ranges as the default, identify the scenario where you might use a particular variant, and then be at peace with the result.[/b]

Use what works 'most of the time' most of the time:
mini_mums.png

Thanks for this example. Guess if one's lucky to get a very large range in one's favor, start looking into how to protect it / exit.

That makes me think about something else though; trying to look at it from the other perspective (ie, a sudden range against). How would one handle that? If you use close prices but wait for price to close over something to make a decision, what if the candle is much larger than average? Would you still wait for the 'range set' to complete or just pull the plug somewhere else.

Maybe going off topic but I've been thinking about stops with close prices for two days

[IgazI]

Every situation isn't going to be rosy, so let's look at a problem.

If you used 3 or 2 ranges here then you gave back a healthy number of pips, that's just the facts. . .pip evaporation happens even to day traders.

A close over a range is the minimum that you would have needed to see before initiating an exit strategy;

- first break (1st arrow)
- second break (2nd arrow) / 'stop profit' order

both are acceptable in this scenario where [b]price went from posting small ranges to making a very large range with the sudden drop.

Use three ranges as the default, identify the scenario where you might use a particular variant, and then be at peace with the result.[/b]

Use what works 'most of the time' most of the time:
mini_mums.png

Thanks for this example. Guess if one's lucky to get a very large range in one's favor, start looking into how to protect it / exit.

That makes me think about something else though; trying to look at it from the other perspective (ie, a sudden range against). How would one handle that? If you use close prices but wait for price to close over something to make a decision, what if the candle is much larger than average? Would you still wait for the 'range set' to complete or just pull the plug somewhere else.

Maybe going off topic but I've been thinking about stops with close prices for two days

Again, there is nowhere to place a stop short of price closing over a range; if price closes over even a single range then you can use a stop order to enter or exit.

If you are worried about the range then shave off 5 minutes, maybe trade a 15 instead of a 20 minute, but don't go throwing stops around all willy-nilly.

[IgazI]

BTC_D.png (70.07 KiB) Viewed 2352 times

[IgazI]

A whole lot of nothing. . .

a_btc_chart.png (108.69 KiB) Viewed 2291 times

[Jhx]

Every situation isn't going to be rosy, so let's look at a problem.

If you used 3 or 2 ranges here then you gave back a healthy number of pips, that's just the facts. . .pip evaporation happens even to day traders.

A close over a range is the minimum that you would have needed to see before initiating an exit strategy;

- first break (1st arrow)
- second break (2nd arrow) / 'stop profit' order

both are acceptable in this scenario where [b]price went from posting small ranges to making a very large range with the sudden drop.

Use three ranges as the default, identify the scenario where you might use a particular variant, and then be at peace with the result.[/b]

Use what works 'most of the time' most of the time:
mini_mums.png

Thanks for this example. Guess if one's lucky to get a very large range in one's favor, start looking into how to protect it / exit.

That makes me think about something else though; trying to look at it from the other perspective (ie, a sudden range against). How would one handle that? If you use close prices but wait for price to close over something to make a decision, what if the candle is much larger than average? Would you still wait for the 'range set' to complete or just pull the plug somewhere else.

Maybe going off topic but I've been thinking about stops with close prices for two days

Again, there is nowhere to place a stop short of price closing over a range; if price closes over even a single range then you can use a stop order to enter or exit.

If you are worried about the range then shave off 5 minutes, maybe trade a 15 instead of a 20 minute, but don't go throwing stops around all willy-nilly.

So essentially not using 'stop loss'? Just exiting on a close over a range?
(Sorry if this seems obvious; there might a slight language barrier on my end)

[Jhx]

A whole lot of nothing. . .

a_btc_chart.png

On those cases where price doesn't move much, do you consider all that area as a big "range set" or do you move up another timeframe? Because I don't see how one would tackle those smaller swings

[IgazI]

So essentially not using 'stop loss'? Just exiting on a close over a range?
(Sorry if this seems obvious; there might a slight language barrier on my end)

How many times do I have to say the same thing

- I don't like line charts; the way the closes are plotted is unsatisfactory
- I don't use a stop loss, stops are for day traders; these methods are for swing traders
- if there is a reason to enter or exit then one can use a stop to enter or exit
- price closing over a range is the reason to enter
- price closing over a range is the reason to exit
- the highest to lowest of any number of frames can be used as a range
- the default range is three frames
- one scales into trades to minimize the size of the loss
- one swing trades in the direction of the hour, the day, the week, & the month;
if you ask me what "the direction" is then I give up

Quiz question:
If price is going down, are you trading long from low swings or short from high swings?
a. doesn't matter
b. long
c. what are you doing? buy the dip, bro!
d. short

the_picture.png (66.53 KiB) Viewed 2179 times

[IgazI]

20 minute columns:

a_btc_chart.png (72.57 KiB) Viewed 2163 times

[Jhx]

Quiz question:
If price is going down, are you trading long from low swings or short from high swings?
a. doesn't matter
b. long
c. what are you doing? buy the dip, bro!
d. short
the_picture.png

If your latest piece of information determines that the direction of price is now down, then you're trading short from high swings until price eventually says otherwise.

It would only make sense to go long once you can determine that the direction of price is now up (and no longer down), and by then you'd be looking for longs from low swings.

Either that or I'm seriously confused