lukx zline trading log + cfabian p.35 + adaseb p.48

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noushina
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Postby noushina » Tue Nov 03, 2009 7:01 pm

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Well this rule applies in reverse too> Don't sell after a lot of selling
And don't sell into a zone of support (demand - i.e a place where buyers are.

You violated both of these rules: selling after a long red bar and selling into a zone dominated by buyers.
I think most of us would have bought at the place you sold. I did.
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As to the descending triangle idea of buyers getting used up, that
was a minor point merely used to demo the major one of support/resistance (demand/supply). in the above exampole there is a small triangle that uses up the buyers. And so one could sell PRIOR to the long red breakdown bar that you sold after. But even then you would be (and did ) sell into a huge pool of buyers.

As to your piling up of areas of supply - where did that come from? Nothing I've seen before.

There are zones where sellers are the dominant force entering the market and zones where buyers are the dominant force enter the market. And these are at the extremes.
Last edited by noushina on Tue Nov 03, 2009 7:36 pm, edited 1 time in total.

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lukx
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Postby lukx » Tue Nov 03, 2009 7:29 pm

well I though that the more times zone is tested it will weaken the buyers. too bad I didn't saw all this :( Thanks noushina for clearing it up.

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Postby pablo101 » Wed Nov 04, 2009 2:32 am

Thanks Lukx

Yes, not a good idea to sell into demand area. I waited for this long trade from that demand area.

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I closed out too early on H1 turning point but could have held to h4 supply for another +50 pips, Should have trusted the H4 closed candle wicks too. :evil:

Thanks for the explanation noushina :)
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lukx
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Postby lukx » Wed Nov 04, 2009 7:03 am

-150 pips, getting closer and closer to margin call:
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pablo101
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Postby pablo101 » Wed Nov 04, 2009 7:40 am

lukx wrote:-150 pips, getting closer and closer to margin call:
Image


-150 pips? Sounds like you're getting frustrated, What happened to your trading plan.

For your short entry, you sold into demand (see my most recent chart, the bottom yellow area) so prob not a good idea.

Anyway, aren't you doing zlines?
Last edited by pablo101 on Tue Jun 15, 2010 3:13 am, edited 1 time in total.

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lukx
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Postby lukx » Wed Nov 04, 2009 8:17 am

yes you're right, it was my mistake hoping that the price will go where I wanted. But it's already happened and it's too late. I decided not to close the trade because anyway the recovery after this loss will take me ages so if I hit margin call than be it. There's no point to lie and say that I can see while I can't.

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Postby PTG » Wed Nov 04, 2009 8:25 am

lukx wrote:-150 pips, getting closer and closer to margin call:


I don't understand why the heck you don't cut your losses.

Like Pablo I wonder what happened to your trading plan. You have to tackle this in a structured manner, if you want to win this game that is. This is much more complicated than just the entries. That's only a tiny part of the story.
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PTG
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Postby PTG » Wed Nov 04, 2009 8:32 am

lukx wrote:yes you're right, it was my mistake hoping that the price will go where I wanted. But it's already happened and it's too late. I decided not to close the trade because anyway the recovery after this loss will take me ages so if I hit margin call than be it. There's no point to lie and say that I can see while I can't.


There are a couple of fundamental things that you forget. One of them Pablo mentioned, and it will dawn on you at some point in time.

You don't want to sell into demand, and you don't want to buy into supply. If everybody wants to buy (demand), you don't want to sell because they are looking to buy at a low price and that is what you will get: a low price. Then you are in a short position and price goes up - not a good idea, is it ! Same goes for supply zone but the other way around.

You need to understand this part of the bigger picture, as well as directional arguments like what the higher tf directions are and wether or not they are corrections or trends.

Have you ever considered trading on demo instead of handing out your money ?
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lukx
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Postby lukx » Wed Nov 04, 2009 8:54 am

PTG and what about demand and supply zone getting weaker after many tests? Can it happen or I should forget about this thing?

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Postby PTG » Wed Nov 04, 2009 9:07 am

lukx wrote:PTG and what about demand and supply zone getting weaker after many tests? Can it happen or I should forget about this thing?


I would keep that in the back of my mind. At the end of the day, what counts is what you see not what you hope or think that's going to happen. Difficult to explain this I must say.

I would recommend that you only take a trade based on retracements. They are higher probability and lower risk. If you think that price has been eating away from zones, and you think it's going to break out, just wait for price to actually do that and sit on your hands until you see the the retracement happen, and THEN take the trade and not earlier than that. What you are thinking of, is gambling, not trading. So, again: wait for price to prove to you what is likely to happen by acting ONLY on retracements to either breakouts or bounces.

For your own piece of mind this will be better I believe.
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