The ideas that I trade by:

[prochargedmopar]

Why wait when I can see what is happening and which way price is moving NOW?
Why take a guess at what price might do when I can see what it IS doing? -PRO

I blame Oanda for questions like this

The ASK is the price that a trader can buy at.
The BID is the price that a trader can sell at.

Now that you know that there are always two prices, a BID & an ASK, you can see that we are
trading (one side bids, the other side asks, & someone agrees) not predicting price action (paying whatever
the guy asks).

That answer my friends is the evidence that M.O. is like no other trading teacher on the interwebs.
And also why so many accuse him of speaking in riddles.

[MightyOne]

That answer my friends is the evidence that M.O. is like no other trading teacher on the interwebs.
And also why so many accuse him of speaking in riddles.

Do you care to elaborate PRO...

and you 'forgot' to include the middle part:

Many charts plot the bid price, so when we say 'price is at' we are really saying 'bid is at'.

When you place a buy market order you are agreeing to the lowest ASK & your account shows
a deficit because the highest BID is at a lower price...
...and then there is commission, fees, & slippage

or failed to use '...' when quoting.

[aliassmith]

That answer my friends is the evidence that M.O. is like no other trading teacher on the interwebs.
And also why so many accuse him of speaking in riddles.

I must be getting familiar with MO because it didn't seem like a riddle to me.

[jrtrading]

Thanks for an interesting read.

I am trying to think about this logically. If anyone have comments to my statements that would be highly appreciated.

We want to have positions near (but, out of reach of) a long term (yearly) extreme. This may be the best location to find out if you are right or wrong because that area should be protected by market participants that should drive the price in your direction anyways.

An extreme is only known after the fact when price has moved away from it. Still, if you are close it is possible to put your stop loss near the extreme by adjusting position size.

A yearly turning point in price does not happen over night and thus should provide several opportunities to enter. I think the most difficulty is knowing what will become a long term extreme, because well you can only know that after the fact and then it may be to late to enter. Maybe you will enter at many short term extremes that will be taken out easily. So, maybe this can be used to identify a long term extreme: several failed attempts to breach it occurring over a length of time (=opportunity to enter). This is where I struggle the most.

Assuming that price goes in your favour you can exit the position when in profit and you feel that price will turn against you. Wait until you see that market participants are "still with you" and reinvest the profits by increasing position size and normalizing (moving, tightening) stop loss.

This approach will achieve either losing all of your profits + maybe small loss (linear) or gaining a lot ("exponential").

[prochargedmopar]

Ha,
Thats now my problem.
Getting in before the "xtreme" is in place.
M.O. calls that gambling.

I call it the fear of missing out.

[aliassmith]

Ha,
Thats now my problem.
Getting in before the "xtreme" is in place.
M.O. calls that gambling.

I call it the fear of missing out.

probably why MO uses less than .5% risk since its
low probability trade. High return makes up for it.
you can lose a few trades if your return is over
100:1.

[Jalarupa]

Ha,
Thats now my problem.
Getting in before the "xtreme" is in place.
M.O. calls that gambling.

I call it the fear of missing out.

Whats the difficulty? There is an Extreme and you trade away from it...

https://www.tradingview.com/x/oPWRJ6AK/

If you get it wrong then as long as you manage your Risk (which this method does, if you follow it properly) then you technically only lose initial risk capital - but the way MO plays it is he will scale out before he takes a full loss... "Never take a full loss" - MO

So yeah, I don't know whats the issue with extremes// They are all over the place, and If they get breached, or you think they will then just place your limit above the extreme with a large enough stop if you are "gambling" - at least that way you got a better chance of getting wicked...?

https://www.tradingview.com/x/e11SPXTv/

Here's a real world example of a trade I made on the UC a few weeks back...

https://www.tradingview.com/x/6d7pyfe3/

The logic was to trade off the Huge Extremes to the left... but taking the Cones into account I opted for a wicked in approach

https://www.tradingview.com/x/wdMfORwk/

The first trade i held over night and only scaled around in the next day and normalized the risk because I thought the Extreme was good... Took it all the way to the cone break out at the bottom reversed and got in my second trade later in the US session off the back of some good news...

Closed out at the original entry... this just an example of how I traded this method over a longer term view... with a similar result...

[MightyOne]

Imagine if grandma tried explaining in a forum post how to knit socks using 4 needles

You would feel completely lost wouldn't you?

But after you practice for a while then you will come to realize that grandma is no rocket scientist,
she is just using the basics to achieve an end result...

...trading extremes is like knitting socks

[Jalarupa]

Imagine if grandma tried explaining in a forum post how to knit socks using 4 needles

You would feel completely lost wouldn't you?

But after you practice for a while then you will come to realize that grandma is no rocket scientist,
she is just using the basics to achieve an end result...

...trading extremes is like knitting socks

Yeah right Grandmo you make rocket science easy... But it is still rocket science...

Never knew it takes 4 needles to knit a pair of socks... You are just full of interesting info!

"Why Grandmo! What big eyes you have...?"

All the better to see pips within empty space my child!

"Why Grandmo! What big ears you have...?"

All the better to hear the screams of buy buy bye from the pits with my child!

"Why Grandmo! What a big mouth you have.. ?

All the better to shout at you to, grow some #@&%in balls before I eat you!

Sorry.. I have a 3 year old

[Captain Pugwash]

Imagine if grandma tried explaining in a forum post how to knit socks using 4 needles

You would feel completely lost wouldn't you?

But after you practice for a while then you will come to realize that grandma is no rocket scientist,
she is just using the basics to achieve an end result...

...trading extremes is like knitting socks

Easily Explained

Grandma Rocks back and forward

String goes to the top of the needles

The needles wiggle around really fast (must make clacking sound)

The socks slowly appear in mid air air just below the needles



And that's why I needed someone like bredin to explain your space ideas to me in the first place - he was sort of like a translator - luckily he is taking an interest in this thread.

I am on my way with the DOP stuff tho - cant quite believe it myself that that clicked - thanks for your efforts again old chap

EDIT - although drawing the resultant channel extensions is another trick I know I have not yet refined