really appreciate the response, I will try my best to ask questions to gain more understanding on your imaginations.
I don't think of a trade as an entry but as the placing of a stop loss and the normalization of risk; normalizing risk "trails" your stop loss and that is why I have said in the past that "trading is simply placing and trailing stops".
It is good that once you enter a trade, you have a stop loss in place.
1) But do you enter a trade primarily because of this very good stop loss position?
("Very good stop loss position" here means price is very unlikely to reach due to your analysis)
Lines spacing is based on a percentage of the weekly median range.
2) Clarification: "Weekly median range" here means the current week's range? or is it the last week range? or the average of weekly bars for the past month?
I will calculate to give examples using EURUSD:
EU current week range (high to low): 90.5 pips
EU last week range (high to low): 134.5 pips
90.5+134.5+187.6+129.1= 541.7pip divided by 4 = 135.4pips (average of weekly bars for the past 4 wks)
Once this is clarified, I will calculate the percentages for the different timeframes (M1-MN)
The length of time that it takes for price to move through space, from one line to the other, determines the timeframe that you are trading;
like Point & Figure charting, the scale becomes the timeframe.
This is quite deep. hehe... I will try to break it down.
3.1) Does this mean that the faster the price move to get from one line to the other, the bigger the timeframe you will be trading on?
3.2) Is this example correct? If the EURUSD moved 300 pips during the day, it has determined that the timeframe I will be trading will be on higher timeframe (D1, W1, MN).
3.3) Can I have the indicator for Point & Figure charting please. I would like to see what it means to have the scale becomes the timeframe.
These are some questions I have for now, will write again soon. Thanks all for reading this post.