Captian,
Great observation.
This is what it comes down to for me. As Tro has always stated that price is the same on any time frame. Knowing this and that price action moves the same way on any instrument is the biggest key to trading any index.
Charts change and manipulate how price is viewed due to it being chained to time constraints of the viewed chart.
Renko and Range bar charts, do they not manipulate price also based on point size restrictions to paint there picture? This is the artistry of chaos and confusion.
Knowing that price always moves in the "abcd" pattern is huge. I have learned to view price in each direction. You will have this pattern in both directions on any depiction of price movement. They even counter each other. BUT, only one direction can win out. Price can only go up or down, not both directions at the same time. Think of it as this , can you walk forward and backwards at he same time? Everyone of my trades is now drawn as a pattern up (bullish) and a pattern down(bearish) then i "see" who wins out. Learn to read price on any instrument laid in front of you and fear vanishes. We all know what a force fear plays in our ability to trade. Basic rules have come down to this for me.
a) Assume green candles form the lows 1st followed by the highs.
b) Assume red candles form the highs 1st followed by the lows.
Do they really? I assume percentage wise "yes" due to it works with a very high success rate.
c) Every trade I take has a pattern up and a pattern down and they can overlap but only one will win out.
d)ONLY 'cd' legs can become 'ab' legs. Many traders dont use fibs correctly.
e) Price retraces to 23.6 to 50 percent of the 'cd' leg for entries.
f) Read price, dont be bound by the charts perception of price based on anything besides price (no time, no point moves)
g) I look at 'b's' as zlines and 'a,s' as my something line.
h) Use the same pattern to define your Money Management and its nearly impossible to lose.
I dont mean I dont have losing trades! Im talking about the basket of trades for that cycle.
My goal is 20 pips a day. ITS ALL ONE NEEDS.
The above works with any indicator, psych line, trendline, ect. Why? Because your reading price as the primary decision, based on a reference point of the other three. They are just reference points on a chart just as the time and point based illusions are.
Trading is simple. I used to hate when Tro would say this. I once was a disbeliever. I can care less if I lose a trade. I know I can cover it in the same basket.
attached is another example from last week.
Hope this helps.
Doji
- 2015-07-08_1358.png (42.01 KiB) Viewed 4770 times
