The ideas that I trade by:

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trueblueTEX
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Postby trueblueTEX » Tue Jan 29, 2013 2:08 am

What is 'average price'? I've seen the term in other threads but I don't know what it means.

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nimo350
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Postby nimo350 » Tue Jan 29, 2013 2:37 am

nt
Last edited by nimo350 on Thu Feb 06, 2014 12:27 pm, edited 1 time in total.

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MightyOne
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Postby MightyOne » Tue Jan 29, 2013 3:32 am

nimo350 wrote:Tex, for me its the average price of entries. MO would say to put it behind a line you believe to be s/r.

ex: if in a long position entry 1 is $5, current price is $10, and you believe $8 looks like a good/safe s/r level.

entry 2 @ current price $10, would make the average price $7.50 right? and that $8 level woudl serve as some barrier from current price to your average price.

That would be my understanding in re how average price serve us, but I am a noob so take it for what its worth.


That is the rule for trailing '00' shortly behind the current price
(adding size on ##)
& it looks something like this:

Image

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MightyOne
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Postby MightyOne » Tue Jan 29, 2013 3:44 am

nimo350 wrote:Okay, I may have abused my space, but we'll see what happens.

I made another entry, because I feel like this short is a temporary position, ultimately I would like to go long. Also because price may not range much on the H4, thus not many chances to build space.

But who knows.

Blue line is my s/r, space is risk, bottom of space is avg price, top is total risk which is outside of weekly extreme.

Image


Your space is so small; I hope that that is not your trade chart :oops:

nimo350
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Postby nimo350 » Tue Jan 29, 2013 4:08 am

nt
Last edited by nimo350 on Thu Feb 06, 2014 12:27 pm, edited 1 time in total.

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MightyOne
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Postby MightyOne » Tue Jan 29, 2013 4:22 am

Think of space like a miniature chart window with upper/lower boundaries.

If we drag your space left then it would look something like this:

Image

We don't want it to look like that =)

It should look like:

Image

nimo350
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Postby nimo350 » Tue Jan 29, 2013 4:30 am

nt
Last edited by nimo350 on Thu Feb 06, 2014 12:27 pm, edited 1 time in total.

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MightyOne
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Postby MightyOne » Tue Jan 29, 2013 4:57 am

No =) just think of space as a chart window where nothing exists outside of the boundaries; if you want to trade based on 'something' then you need to capture that something in Space.

The rule of the largest correction, for lack of a creative descriptive word, simply states:

If you get a correction that is larger than the largest correction, during a trend, then it is likely NOT a correction.

It is not a perfect signal but it definitely raises an alarm
(esp if it is a traders performance chart!)

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nimo350
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Postby nimo350 » Tue Jan 29, 2013 5:02 am

nt
Last edited by nimo350 on Thu Feb 06, 2014 12:27 pm, edited 1 time in total.

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Postby nimo350 » Tue Jan 29, 2013 5:11 am

nt
Last edited by nimo350 on Thu Feb 06, 2014 12:27 pm, edited 1 time in total.

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