The ideas that I trade by:

[Captain Pugwash]

No Jal - that's not what I meant - thanks anyway mate

mine feels more...spidery? and spaced out? (probably those mind altering drugs)

zooming don't help either


yep - i agree with your markup - failure after failure etc etc -

[rahimseven]

I am mostly interested in 'double failures':

Lower high (failure 1), breakout of lower high but does not close higher (failure 2)

price is in a down-trend, there is a higher high that fails to close higher (1), there is a breakout of that higher high but price fails to close higher (2).

Two is a trend

If you are simply trying to get in on a good thing then you can use any long term breakout as your stop:

Picture1.png (197.07 KiB) Viewed 5012 times

Am I understanding correctly that you spot reversals as such?

[rahimseven]

For examples and understanding.

Am I clear on this?

Do you exit and plan entries around this?

Thanks

[MightyOne]

I am mostly interested in 'double failures':

Lower high (failure 1), breakout of lower high but does not close higher (failure 2)

price is in a down-trend, there is a higher high that fails to close higher (1), there is a breakout of that higher high but price fails to close higher (2).

Two is a trend

If you are simply trying to get in on a good thing then you can use any long term breakout as your stop:

usdcaddaily.png

Am I understanding correctly that you spot reversals as such?

Yes, but I will trade in anticipation of a second failure on a small chart.

When the candle finally does close lower I call it 'conformity'; 'confirmation' is waiting for something to happen, 'conformity' is doing something first and expecting things to follow suit.

Don't get carried away though, if there is a LH breakout and there is no short term signal to go short or the daily candle is getting a bit long then there is no expectation of failure.

[MightyOne]

For examples and understanding.

Am I clear on this?

Do you exit and plan entries around this?

Thanks

If price closes above the extreme of the higher low then it is a double failure.

[MightyOne]

No Jal - that's not what I meant - thanks anyway mate

mine feels more...spidery? and spaced out? (probably those mind altering drugs)

zooming don't help either


yep - i agree with your markup - failure after failure etc etc -

I use 2 candles + the active candle when looking at large charts; if I need more information then I will look for it but I try to focus on 'recent' information.

There is always more to be explored though

[Captain Pugwash]

Thanks MO ( although I think we talk at cross purposes this time)


I suddenly got your reasoning on that chart - It sort of fitted my brain (I hope)

I am including a long I have on GU and what I would have done if I understood a day earlier - also how i might use some of this information going forward.

In your loonie example - it strikes me I could put in a pending on the line even if I'm at work (space being above the high)- or should I really be looking at my own PA box of tricks to hone an entry- THANKS - even tho your not here

2015-04-16_1706.png (100.91 KiB) Viewed 4994 times

[Captain Pugwash]

Sorry MO, in retrospect the above chart is confusing (although how I imagine I will use the info to show price entering a supply (Demand) area)

I hope the below chart is more what I should be expecting to see happen - imagining a break up i mean (made up by me)

2015-04-17_1316.png (72.72 KiB) Viewed 4932 times

[MightyOne]

Sorry MO, in retrospect the above chart is confusing (although how I imagine I will use the info to show price entering a supply (Demand) area)

I hope the below chart is more what I should be expecting to see happen - imagining a break up i mean (made up by me)

2015-04-17_1316.png

Trading is placing stops, accumulating lots, & normalizing risk; forget about pips and just focus on those three things.

Liquidate when you hit your %gain...anywhere from 39 to 58.5% is a good target to reset your space (+0 in 5-7 ideas).

Capture space every 3 steps: enter 2, +2, +2, exit or 2, +1, +3, exit.

Sidestep any 'obvious' retrace.

Again, pips have nothing to do with you; they do their own thing

Your job is simply to make sure that you get paid when price decides to make a large move.

[Captain Pugwash]

Yes, but I will trade in anticipation of a second failure on a small chart.

When the candle finally does close lower I call it 'conformity'; 'confirmation' is waiting for something to happen, 'conformity' is doing something first and expecting things to follow suit.

Don't get carried away though, if there is a LH breakout and there is no short term signal to go short or the daily candle is getting a bit long then there is no expectation of failure.

If I understand right - can i assume that if we did NOT see "conformity" - i.e we got a close back up in the zone ( in your example) - I should be thinking of liquidating a position at the best price? - Having a plan for when things do not go as planned sort of thing?


Also any gained space is not necessarily used on the same pair - nice if it happens but not essential? just take your lot size and use it on the next double failure?

Maybe one proviso - I may decide to ignore only if i believe I hold a yearly extreme

Thanks for not being here btw