Three Charts

[MightyOne]

The more I mark the chart the more confused it looks

It is best to just: print off three copies, draw lines, place first page face down, think about the chart, redraw, repeat, & compare.
Make notes on a separate page as you go and then staple everything together; that is paper trading, not forgetting everything that
you have learned after you close an electronic chart.

Anyways, here is my rough draft...taking less than a few short minutes to work on the chart:

jr_001.png (29.46 KiB) Viewed 4644 times

[jrtrading]

The more I mark the chart the more confused it looks

It is best to just: print off three copies, draw lines, place first page face down, think about the chart, redraw, repeat, & compare.
Make notes on a separate page as you go and then staple everything together; that is paper trading, not forgetting everything that
you have learned after you close an electronic chart.

Anyways, here is my rough draft...taking less than a few short minutes to work on the chart:

jr_001.png

Wow, thanks MO!
That was fast.
Much appreciated

[jrtrading]

Merry Christmas, friends of kreslik.

[TygerKrane]

Merry Christmas, friends of kreslik.

Back for more in 2016

[jrtrading]

Merry Christmas, friends of kreslik.

Back for more in 2016

Yes, definitely back for more
Merry X-mas, TygerKrane.

[jrtrading]

As someone wrote earlier, the successful traders see something that others do not see, and I wonder what that is.
I have spent many nights this last week re-reading threads and trying to understand, almost to exhaustion.

Perhaps it is easy to get a wrong impression because the successful trades are often the ones being posted.
Perhaps not.

1. Could it be about trade selection, i.e. only taking the best possible setups?.
Not all extremes are the same, and not all zero lines are the same.
We take trades from an imbalance and want as large of an imbalance as possible.
(for example, zero lines taken in an established trend, where price broke something significant before it's return, see chart below).

2. Could it be the willingness to initiate a position when it feels uncomfortable?
When trading from the extremes it feels good to catch the top or bottom for some reason.
With price underway in a trend it feels uncomfortable to initiate a position with trend (for example NZDUSD earlier this year)

A remedy to the first point could be to use alerts when price reaches certain areas already known to exhibit such imbalances, and only trade (look at price action and make decisions) whenever such an alert is triggered.

For the second point a "close above / below something" is helpful but from my experience if seen on a small timeframe it may not be of great significant and price could jump back. If waiting to see the same on a larger timeframe price is already underway.

MightyOne says that trading is only 10% technical analysis.
Es/Pip said it similarly, focusing on the psychological aspect of trading.

Say there are clusters of potential extremes, which one is it?

This question was actually my first post about a year ago, and from what I can see at present I do not think there is an answer.

eurgbp.png

[withnail]

Hello JR,

Maybe "the phantom of the pits pdf" would be a good read if your not familiar with it already.

Lesson 1 and 2 and a good think about how it could be applied to how you see things would be a splendid start to 2016 imho

Cheers,

Withnail

[jrtrading]

Hello JR,

Maybe "the phantom of the pits pdf" would be a good read if your not familiar with it already.

Lesson 1 and 2 and a good think about how it could be applied to how you see things would be a splendid start to 2016 imho

Cheers,

Withnail

Hi Withnail,

Thanks for your reply and reference, downloaded it just now. Thanks.
Happy new year!

JR

[MightyOne]

As someone wrote earlier, the successful traders see something that others do not see, and I wonder what that is.

They trade what they see, what is plain to all, & manage their money well.

[TheRumpledOne]

"As someone wrote earlier, the successful traders see something that others do not see, and I wonder what that is."

You assume that is a correct statement.

Before online trading, what could a trader see? The ticker. Time and sales.

How were traders successful before the internet?

Could a blind person be a successful trader?

How about this statement:


"The successful traders do something that others do not do."