I've been wrestling with a couple of things. Is there anyone that could help switch the lighbulb on in my head? (I have read the thread, 2ce). I understand the concept, hopefully the pictures I've already put up show this.
Everything you need for this strat is in the first 3 pages in MOs first diagrams but the diagrams lead to some questions, and my confusion comes from charts posted subsequently.
Here's my picture first:
Fat cat are ZONES in the picture above there are two potential fat cat 'lines' I've highlighted for the reverse that happens at the bottom. In this instance they are so close it doesn't really matter, however sometimes they are very very far apart.
Now, close over, close under, the line is a line YOU believe to be S/R, OK I understand that. But WHAT closes over and closes under? Single bar?, 3CC? 9CC? There is a massive difference. I see charts in the thread using all 3 when it suits. Hmm? What about in real time though?? You have to say in advance what is enough for you. Is a single candle close over the line enough for you? Or does it have to be CC? If it should be at least a 3CC for this strategy that means a lot of the charts where the poster has only waiting for one candle, while it might have given a winning trade, is not part of this strategy.
Entry and adding:
MOs entry chart shows the 15 minute TF at a daily+ high. I assume?? this also fits into the bigger picture on a 4 hourCC chart plus and he's then dropped to the 15min for the pullback to fatcat entry and if the analysis is on a big chart the extreme will coincide with a daily+ high/low?
A problem I've been having is with entry, I'm waiting for position in the bigger picture (at least 4 hour chart with CC) then price isn't pulling back to the fatcat or it does pull back but not to the fatcat I've drawn - I have the same issue with zlines - WHICH zline? If I wait for the pullback I miss if it just breaks out, if it pulls back there's often more than one line it can pull back to. Take it on the higher one and you end up getting whipped as it pulls to the lower one. I know, wait for momo BUT this last couple of weeks I've been waiting for momo and there's either been none at the line, or a quick wick, or momo but then no pullback to get an entry. So this has been my problem - getting into a trade. I've had no losses but there's been no wins either. CRAZY!
Anyway, MO, on the 15 minute entry chart appears to add and then liquidate on the same 15 min chart? Wouldn't liquidation occur after a big CC on the 4hour+ chart (whatever was used for analysis?)
Again with adding, is adding done on the 15 minute chart, building a position that will give us a better price if holding based on the 4HR+ or is it adding on the 15 and liquidating on the 15 which actually gives a worse price?
I know I'm asking a lot of questions but hopefully this will help others too. I'm so near yet so far with this method at the moment.
