Aliassmith Psychology 101 and other stuff

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aliassmith
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Postby aliassmith » Tue Jun 22, 2010 1:26 pm

aliassmith wrote:Note to self. Make post about interplay of order stacks. :idea:


So order stacks as I have been calling them are price points/areas
that have a higher concentration of orders. They are basically zlines,
S/R, Supply/Demand, etc.

These price areas are created different ways and on different timeframes.
An example of a popular one here at kreslik.com is the zline/mightyzone.
A small body candle forms and then a larger body "MOMO" candle forms.
Within the Mightyzone there was most likely a breakout that occured. After
the people are in profit for a little bit they move their SL to near BreakEven
,this cause an order stack area to occur.

In my trading I choose to fade these order stack areas. Just about every
time, these areas create a speed bump/bounce of some magnitude. They
don't always make big market turns, but it is a major one of MightyOne's
principals that I have researched and find as a valid area to take notice.

When trading before you came to kreslik.com, where have "YOU" been
known to place SL orders?
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aliassmith
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Postby aliassmith » Wed Jun 23, 2010 1:09 pm

Phantom of the Pits is a nice read.

Reminds me of MIghtyONe. Hey MightyOne, have you read Phantom of
the pits?

Rule One:
IN A LOSING GAME SUCH AS TRADING, WE SHALL START AGAINST THE MAJORITY AND ASSUME - WE ARE WRONG UNTIL PROVEN CORRECT! (We do not assume we are correct until proven wrong.) POSITIONS ESTABLISHED MUST BE REDUCED AND REMOVED UNTIL OR UNLESS THE MARKET PROVES THE POSITION CORRECT! (We allow the market to verify correct positions.)
Trade Your Way as Long as It Makes Money!

aliassmith
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Postby aliassmith » Wed Jun 23, 2010 2:25 pm

Rule Two

PRESS YOUR WINNERS CORRECTLY WITHOUT EXCEPTION


Similar to Blind Mouse
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jarnapal
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Postby jarnapal » Wed Jun 23, 2010 5:29 pm

Maybe MightyOne is the "Phantom of the Pits" ? :mrgreen:

aliassmith
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Postby aliassmith » Thu Jun 24, 2010 5:00 pm

Hard to not think of trading like it is poker, after reading Phantom of the
pits.

When you start a trade you ante up with a loss limit.
You get bad cards you fold quick.
You get cards that have an edge you add more to the pot.

I never won at poker taking only small pots. Small pots and small losses
are what keep you in the game until the winning streak happens. Then
"wham" double up.

As your account grows your ante size gets larger and you can win even
bigger size pots.
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newschool
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Postby newschool » Thu Jun 24, 2010 8:30 pm

Or Blackjack. A very prudent target is 17. But if you have a Face or 10, one should have no hesitation to double the ante.

aliassmith
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Postby aliassmith » Fri Jun 25, 2010 2:37 pm

aliassmith wrote:When trading before you came to kreslik.com, where have "YOU" been
known to place SL orders?


No takers?

How about a rat trade of -10 pips as TRO suggests?
How about arbitrary numbers such as -5, -15, -20, etc.?
Break Even after price moves in your direction for a period or two?

So studying traders and where they place their orders can help a lot
to create an edge and plan to exploit that edge.
Trade Your Way as Long as It Makes Money!

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MightyOne
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Postby MightyOne » Fri Jun 25, 2010 4:25 pm

aliassmith wrote:
aliassmith wrote:When trading before you came to kreslik.com, where have "YOU" been
known to place SL orders?


No takers?

How about a rat trade of -10 pips as TRO suggests?
How about arbitrary numbers such as -5, -15, -20, etc.?
Break Even after price moves in your direction for a period or two?

So studying traders and where they place their orders can help a lot
to create an edge and plan to exploit that edge.


If you start from the breakout and work your way down 15 pips at a time then you will not be too far off in your estimation:

Image

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gfg1
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Postby gfg1 » Fri Jun 25, 2010 5:31 pm

MO, you are unreal dude, thank you for the insight. Only plotted the 60 pip moves on GU 15min. Will work on the 15p segments over the weekend.

MightyOne wrote: If you start from the breakout and work your way down 15 pips at a time then you will not be too far off in your estimation:

Image
Attachments
gu15.gif
gu15.gif (23.09 KiB) Viewed 870 times
Price closed over a line that you believed to be support and that is the first indication that something is WRONG-MO

aliassmith
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Postby aliassmith » Sat Jun 26, 2010 2:14 pm

MightyOne wrote:
aliassmith wrote:
aliassmith wrote:When trading before you came to kreslik.com, where have "YOU" been
known to place SL orders?


No takers?

How about a rat trade of -10 pips as TRO suggests?
How about arbitrary numbers such as -5, -15, -20, etc.?
Break Even after price moves in your direction for a period or two?

So studying traders and where they place their orders can help a lot
to create an edge and plan to exploit that edge.


If you start from the breakout and work your way down 15 pips at a time then you will not be too far off in your estimation:

Image


I also see 10pips and 20pips in that chart. :)
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