The ideas that I trade by:

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Jalarupa
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Postby Jalarupa » Wed Jul 16, 2014 1:36 pm

Captain Pugwash wrote:Wow Jal - thats some serious effort you've put in there.

Thanks so much mate

saved as gifs - gong to request an upgrade to the clarify- it team so i can include gifs into my tutorial volumes

Jal - I noticed on the last gif you started making the lines thinner and "dashy" or "dotty" - whatever :)

Is this simply to declutter the chart - or is there some higher purpose?


The dashed line denoted a guess at a channel middle...

So to put it in perspective, and I've seen MO do this also is try and find the channel middle line and that way you would be able to forecast the whole channel (although the sizes do vary and as we can see from Cone studies we 'should' allow for breakout and revisits of a channel trend line...

Image

But then again, I could just be operating above my pay grade and will have to wait for MO to weigh in on this...

Edit - Result... I got lucky :)

Image

This is my last post for a while, i would like to apologize for hogging all the real estate on MO's Thread
"our deepest fear is not that we are inadequate... our deepest fear is that we are powerful beyond measure... It is our light, not our darkness that most frightens us..."

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MightyOne
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Postby MightyOne » Wed Jul 16, 2014 7:23 pm

The patterns that you find in books are interested in containing price because they are interested in trading the 'true' breakout; some even go so far as to create 'buffer zones' outside of the pattern to allow for false breaks.

We are not interested in the BO, we are only interested in POSITION:

Image


If you could just SEE the diamond (the cone or pennant) then you would internally KNOW what to do...eventually anyway :lol:

Image



This is all that you really need to know to draw a triangle:

There are only two types of triangles and they are the CONE & PENNANT.

BOTH the CONE & PENNANT exist at the same time because a TRIANGLE is nothing more than TWO CHANNELS that cannot agree on direction.

While they are two channels, thus technically the same, they are different in spirit.

A pennant will generally be quiet with a false break or two and re-entry.

A cone will generally be extremely noisy with multiple high/low breakouts and an intense desire to bungee dive in the opposite direction and snap back yet again...it will often leave you feeling mentally exhausted just looking at it.

Each triangle will have its own complex pattern but somehow adhere to its basic shape of two lines pointing in opposite directions.

The #1 rule to drawing triangles is NOT TO INCLUDE THE BREAKOUT as part of the triangle.
You think including the BO at part of the triangle makes the pattern look pretty? It is pretty, pretty stupid! :lol:

The #2 rule is to EITHER draw the pennant OR the cone, not both; it looks more like a...what is the spirit of this triangle (cone or pennant?).

THE #3 rule is NOT TO USE STEEP ANGLES when drawing triangles.
There is another word for a steep angle, we call it...A BREAKOUT...& breakouts are not part of triangles.

9 times out of 10 if you draw a triangle and it has no false breaks then you drew it incorrectly.

HOW DO WE TRADE A TRIANGLE?

You know how to trade a BDP because you know the 'spirit' of the BDP is to point in the direction of profit.

You know how to trade a wickdoll because it points in the direction of loss.

So looking at a triangle you can also feel its spirit and internally know what to do.
In the last picture you are short and you see many new lows forming the bottom of what looks to be a cone.
You get a massive momo to the breakout and instant reversal (very cone like behavior) followed by yet another low break and momo reversal.
Next we get multiple pivot breaks followed by a low break...we know the spirit of the cone, we know where this is going :wink:

You just have to look

You just have to feel

There is not a lot that one can say

I cannot give you experience, you must experience it.

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dojirock
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Postby dojirock » Thu Jul 17, 2014 4:41 pm

Thank you both for your post!

Im off to feel, observe....something will come to me eventually.

talk soon...
"A small loss is just as satisfying as a large gain" -MO
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MightyOne
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Postby MightyOne » Thu Jul 17, 2014 5:16 pm

I'll draw so many triangles that you cannot help but draw them correctly; where 'correct' is not the angles used but the weeding of breakouts from the triangle pattern.

Image

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Braathen
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Postby Braathen » Thu Jul 17, 2014 9:32 pm

anything like this?

Image
"Trading is the ability to see & to plan & to act; it is not crystal balls, precision entries, and ego stroking."
MO-

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MightyOne
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Postby MightyOne » Thu Jul 17, 2014 9:50 pm

Yes, that looks good Braathen.

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xXx
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Postby xXx » Fri Jul 18, 2014 2:38 pm

How should I convince myself to exit when I should, rather than to hope for a breakout? :cry:

Price was closing higher so I entered long but price didnt close higher so I remembered "Is it closing higher or lower than something" and took small loss because the wick doll (circled).

Then I entered short being certain that a breakout would happen and where the exit marks are.
What should I do, have I done something wrong and how to trade? :roll:
Attachments
AUDUSDH1.png
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AUDUSDH12.png
AUDUSDH12.png (38.04 KiB) Viewed 854 times

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MightyOne
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Postby MightyOne » Fri Jul 18, 2014 5:00 pm

xXx,

you went long into a cone BO & short into the bottom of a channel, but the most disturbing thing is that you didn't start your post with "I went long from this wickdoll/BOx/HTx on the multiday"

when you value your entries more than position then you will likely always fail unless you take pips when you see them.

I guess that the biggest clue you had was that the chart was moving sideways.

Image

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Braathen
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Postby Braathen » Fri Jul 18, 2014 7:13 pm

So EU just hit a 1month+ extreme and i got a nice little pennant going
here.. what im going to do with it is another question :D
I will keep drawing them and try to see what i can see :D

But it does look cool!

Image
"Trading is the ability to see & to plan & to act; it is not crystal balls, precision entries, and ego stroking."
MO-

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xXx
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Postby xXx » Sat Jul 19, 2014 8:07 am

The way I had seen the market was:
I had the position at Daily+
I had my line on sand
and I thought that the grey area would break.
It is difficult to close the trade and re-enter :roll:
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