The ideas that I trade by:

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MightyOne
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Postby MightyOne » Fri Sep 07, 2012 4:48 am

newscalper wrote:MO - w.r.t extremes and space, do you also use the open as a reference? I.E say you are going to trade the weekly candle, you position at this weeks low and trade with candle colour? I.E if price is above the open you go long, if price is below the open you go short and position at the appropriate extreme?

Thanks


The only open price I use is the daily candle...
it looks like I am going to have to start a new thread.

Previously, I gave a lesson called 'The Time Travel Entry' and it looked
like this:

Image


Now that is 250 pips of space and probably way outside of your price range so what are you to do?

You could position yourself on long term extremes.

You could use any of those ret prices you see in the pic as
locations for position.

You could use price levels.

You could do anything and everything under the sun as long as it lines up with the fact that you wish you had gone long from good position with low risk and preferably a large lot size.

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Neo88
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Postby Neo88 » Fri Sep 07, 2012 10:20 am

MightyOne wrote:Neo88,

That is like saying that two people noticed that they should buy green candles and sell red ones; profitability has general rules that are shared by many.


I was pointing more to the fact of acquiring knowledge through a derivative source like Paul's quote, books, articles, and if you could recommend some that worth reading which helped you before

or where you primarily focused on observing reality and deriving knowledge from practice?

Thanks
A man must believe in himself and his judgment if he expects to make a living at this game. - Jesse Livermore

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Postby MightyOne » Fri Sep 07, 2012 4:28 pm

It is just a matter of trying to do things differently while not making the same mistake twice.

I believe that the chart tells me exactly how it should be traded at any given point in time & that I need only learn to listen.

That said, I did enjoy Market Wizards 1 & 2 as well as 'Getting Started in Technical Analysis', Ted Warren Method, & the James16 group.

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Postby MightyOne » Fri Sep 07, 2012 4:35 pm

The EU is some 750 pips off of the yearly low.

How would you catch such a move?

I) It starts with a trade from the yearly/quarterly low.

II) You then build your lot size with trades on small charts.

III) After that you realign with the long term direction for the expansion.

recap: Position, Lot Size, Expansion.

Price will move a hundred or hundreds of pips from one extreme or the other.

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Postby Neo88 » Sat Sep 08, 2012 2:05 pm

MightyOne wrote:
I believe that the chart tells me exactly how it should be traded at any given point in time & that I need only learn to listen.



Maybe I should put that in my signature :)
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Postby MightyOne » Sat Sep 08, 2012 2:10 pm

I like your current signature :)

Neo88
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Postby Neo88 » Sat Sep 08, 2012 2:21 pm

Yes it is a wisdom of practice same as your quote
A man must believe in himself and his judgment if he expects to make a living at this game. - Jesse Livermore

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Postby Neo88 » Sat Sep 08, 2012 2:29 pm

MightyOne wrote:The EU is some 750 pips off of the yearly low.

How would you catch such a move?

I) It starts with a trade from the yearly/quarterly low.

II) You then build your lot size with trades on small charts.

III) After that you realign with the long term direction for the expansion.

recap: Position, Lot Size, Expansion.

Price will move a hundred or hundreds of pips from one extreme or the other.


I read that many times before and I think I understand it at least in retrospect

- First is position with initial risk which I adjust to put my stop below a strong big charts support where if price break I may consider to trade in the opposite direction

- Then I drop to small charts and trade that chart with the same risk, I just adjust my risk so:

If I get stoped on small charts my position will move back to big chart support

If price expand, I add to my position and automatically set my stop below the last support or take profit and buy back lower with new adjusted amount at risk

If price expand and form a new big chart support I will consider it as my new point of highest risk and move the whole position below it

If price hit a big chart resistance and start closing lower on small charts I liquidate and trade short toward big chart support taking in count the new adjusted amount at risk

- If the trend start picking up again I start buying but with a much bigger lot and the process repeat again until the bigger chart is fully expanded.

I know it is much easier to explain such matters with charts but am I guessing right at least theoretically?
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Postby MightyOne » Sat Sep 08, 2012 2:41 pm

Everything looks good except for "I will do this if that"

You should have general rules that for the foundation of your trading but you should be willing to do anything at any given time to get the job done; sometimes that means piecemealing enough space for a position.

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Postby Neo88 » Sat Sep 08, 2012 9:38 pm

If I had to sum up the previous post in general rules I would say

Always be aware of important congestion areas

Never risk all space on a single idea always have backup plan i.e (partial stops)
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