Jalarupa wrote:MightyOne wrote:GBPJPYDaily.png
I just go down a list:
1. close overs
2. failure to close over
3. congestion
4. breakout from triangle
5. triangle
6. extreme or BOx
7. space/decision
It takes me less than 10 seconds to come to a decision on any chart.
Can we talk a lil more about Number 3?
Is congestion just a Cone or a compression or a wedge??? What is it that is telling? and what is it telling?
I use the Joe Ross definition of congestion; overlapping price bars: inside bars, outside bars, "flip flops", deep retracements, etc.
What is it telling you?
1. Expect retracements that re-enter congestion.
2. Widen the spread between the BO and your limit order.
3. In long term congestion, play both sides short term rather than one side long(er) term.
3b. breakouts and re-entry (2nd & 3rd blue oval) are a little different; you still consider "3" but you also have a long term play in mind.
For the spiritual only: It is best to not actively think about the problem
Consider the basics without considering the answer & then let your mind flow like water
If you do not search for the answer then the answer will find you because the mind is always in motion.
If you are lost then you should remain still or how else will those who are searching find you?