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buffalo
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IgazI wrote:
buffalo wrote:
so chart on the right is a "bias"? when the chart on the right is going down you only take the downward moves on the left chart. Thanks IgazI!

The chart on the right is a condensed history of price moving through the horizontal lines of the chart on the left:

each column is called a 'price rotation' and each rotation comes in two flavors, common lengths and outliers;

when a rotation is of a common length (5 through 9) you begin looking for a reversal trade, and in the direction of the anticipated breakout if you are 'going somewhere'; the breakout itself is likely to be the end or near the end of a price rotation.

How many columns have a length of 4? very few? so you would wait to short because 4's are not 'common'.

What about 12+? very few, right? so there are places where you expect price not to go until there is a significant retracement.

It is really as simple as that.

so the first chart is the where are we going chart (.80x2). second is the "stick around" chart (.2x2)

652021lg.png (50.59 KiB) Viewed 913 times

652021sm.png (112.61 KiB) Viewed 913 times

for examples sake we'll say a common price rotation is 8. Entry on second chart in the box and exit when first chart gets to the 8th point?

Also im assuming with the criteria youve mentioned its best to skip taking the reversals off the columns that are 4 or less points?

IgazI
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buffalo wrote:
so the first chart is the where are we going chart (.80x2). second is the "stick around" chart (.2x2)

652021lg.png
652021sm.png

for examples sake we'll say a common price rotation is 8. Entry on second chart in the box and exit when first chart gets to the 8th point?

Also im assuming with the criteria youve mentioned its best to skip taking the reversals off the columns that are 4 or less points?

The target is up to a column length of 5 on the "go somewhere" chart; if the common rotation is 8 then that is the area where you start looking for a trade, it has nothing to do with where you exit; if you are going to make a play in the direction of the anticipated breakout then you would hold for more than 5. . .if 5's did not exist on the chart then you would bump it to 6 or the lowest common number that is greater than 4.

Your small chart should be as small as you can comfortably get it: eg, for the MES, I am using 5 ticks x 4 (1.25 points x 4), and the larger chart is the size of the reversal, eg 20 tick boxes.

We are completely ignoring 1's, 2's, & 3's; 4's are neutral for rotations but good swings for anticipated breakout trades, so we include them; you should be getting all the 'detail' you need, all the sideways PA your hearts desires, from the small chart.

The main goal is NOT to trade a P&F chart, it is to enter where rotations are likely to be coming to an end, exit, and then start stacking contracts;
take all of those ideas of learning chart patterns and chuck them out of the window; if it is obvious, hold, if it is not obvious then take the money.
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Mark Mark
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Mr. Hyde wrote:Did I just get punked reading this thread. I fell like i definatley got punked. Mark Mark must be prochargedmopar's adhd riddled kid or something

First of all, I have nothing wrong with my psyche. Secondly, I'm just learning how to trade. Third, if you want to offend someone, then you are clearly at the wrong place.
the fact that I did not explain many of the screenshots that I posted is my fault - here I agree
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Mr. Hyde
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Im sorry if i offended. Im apologize

Mark Mark
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Mr. Hyde wrote:Im sorry if i offended. Im apologize

It's all good. Don't worry.
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IgazI
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Before you consider anything else, Mark Mark, open a ~2 minute chart and decide what a single unit of risk looks like; I would make it a multiple of 4 ticks.

The first thing that I want to know is how volatile the small chart is and how much it is going to cost to saddle up that pony.
Tey-ah-tah Om Bake-an-zeya Bake-an-zeya Maha-Bake-an-zeya Rahts-ah Sahm-O'gahtey So-ha

Mark Mark
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IgazI wrote:Before you consider anything else, Mark Mark, open a ~2 minute chart and decide what a single unit of risk looks like; I would make it a multiple of 4 ticks.

The first thing that I want to know is how volatile the small chart is and how much it is going to cost to saddle up that pony.

It is interesting. Can I try this approach on forex? I don't trade mes because I have not account on cme
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IgazI
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Mark Mark wrote:
IgazI wrote:Before you consider anything else, Mark Mark, open a ~2 minute chart and decide what a single unit of risk looks like; I would make it a multiple of 4 ticks.

The first thing that I want to know is how volatile the small chart is and how much it is going to cost to saddle up that pony.

It is interesting. Can I try this approach on forex? I don't trade mes because I have not account on cme

Of course! It would look something like the chart below.

The Point & Figure would be 0.0001 x 4, ideally 0.00006 or 0.00007 x 4, and the large chart would be 0.00025 x 4 (or 0.00024-0.00028).

Think of the lines as if they were 1 pip apart, how far do you want that 2 minute chart to move to make or break 1 pip?

Placing your stop loss first, can you find a trade within 1.5 to 2.5 lines of your stop?

MarketPrep.png (82.81 KiB) Viewed 568 times
Tey-ah-tah Om Bake-an-zeya Bake-an-zeya Maha-Bake-an-zeya Rahts-ah Sahm-O'gahtey So-ha

Mark Mark
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IgazI wrote:
Mark Mark wrote:
IgazI wrote:Before you consider anything else, Mark Mark, open a ~2 minute chart and decide what a single unit of risk looks like; I would make it a multiple of 4 ticks.

The first thing that I want to know is how volatile the small chart is and how much it is going to cost to saddle up that pony.

It is interesting. Can I try this approach on forex? I don't trade mes because I have not account on cme

Of course! It would look something like the chart below.

The Point & Figure would be 0.0001 x 4, ideally 0.00006 or 0.00007 x 4, and the large chart would be 0.00025 x 4 (or 0.00024-0.00028).

Think of the lines as if they were 1 pip apart, how far do you want that 2 minute chart to move to make or break 1 pip?

Placing your stop loss first, can you find a trade within 1.5 to 2.5 lines of your stop?

MarketPrep.png

What do the numbers above and below the graph mean?
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IgazI
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Mark Mark wrote:
IgazI wrote:
Mark Mark wrote:It is interesting. Can I try this approach on forex? I don't trade mes because I have not account on cme

Of course! It would look something like the chart below.

The Point & Figure would be 0.0001 x 4, ideally 0.00006 or 0.00007 x 4, and the large chart would be 0.00025 x 4 (or 0.00024-0.00028).

Think of the lines as if they were 1 pip apart, how far do you want that 2 minute chart to move to make or break 1 pip?

Placing your stop loss first, can you find a trade within 1.5 to 2.5 lines of your stop?

MarketPrep.png

What do the numbers above and below the graph mean?

It is the column length of a 4 box reversal P&F chart using the high-low method.

The rotations are counted so that we have an idea of how far price tends to move before the rotation comes to an end.
Tey-ah-tah Om Bake-an-zeya Bake-an-zeya Maha-Bake-an-zeya Rahts-ah Sahm-O'gahtey So-ha