DbPhoenix

Glad to help:)........

If you're concerned about "going broke" before you're on the road to profitability, study this companion post as well.

I found this post on "The Acid Tests" interesting and have nominated it accordingly for "Topic Of The Month April, 2009"

Aren't you mixing perspectives? If you're trading off a daily chart, the 1m is irrelevant. Your entry should be below your green bar and your stop above. Unless you want to wait until price actually reaches the upper limit of your range. If so, the same procedure applies.

You certainly may. But the BWT thread has been around for three months, as has edabreu. If any of this is spam, then so is every other similar thread.

He's not spamming anything. He's already made all of this clear in the Blue Wave thread. If you have issues with it, contact James.

I wasn't going to post anything bec I didn't think we'd drop back into the range overnite, but here we are. More ops this way but also more complexity.

Thanks for posting these tonite. As I've said, I saw no reason why we shouldn't get at least to the February highs, and we're more or less there. Next step is 34 on the Q, and given the strength of the volume of advancers, that shouldn't be too difficult. Tho maybe not tomorrow:) Technology, of course, is the strongest sector, and the SPX and Dow have their own issues. They may provide a brake. Even so, the wind would appear to be at our backs for the time being.

Construction index.............

Incidentally, wj, and anyone else who uses this "box" approach, there is no one right way, particularly with regard to the tails, and one person's charts needn't exactly match another's. The point is to locate the consolidations which, since these are CVB charts, by definition will also locate the volume. The boundaries aren't going to be much different, much less the midpoints, and one is always free to locate potential S/R within a box, such as when a series of swing points line up inside a broader consolidation. All of which is to say that no one who is interested in this should avoid posting a chart just because it doesn't look like somebody else's. It's just a matter of locating those areas where price stops advancing or declining and begins retracing its steps, back and forth, treading water, running in place.

"Buried treasure. Or buried truth. That is what Magee’s book is. The first edition in 1958 fell on deaf ears (or deaf and dumb ears), so in the day to day practice of his business, Magee did what comes naturally: ran a very successful investment advisory firm and sold hundreds of thousands of copies of his more famous book, Technical Analysis of Stock Trends. The potential original audience probably looked at the title General Semantics of Wall Street and passed on by as quickly as possible. After all, if you can’t define it, why read about it? "Now, having reread it, I am consumed with regret that I didn’t read it for breakfast every morning during my 40 years of investing, speculating, gambling, and managing money in the markets. Coming to it now, like an old raccoon with many scars, it is like finding buried wisdom, the codification of all the non-technical things Magee knew about the market, and one of the books which every investor should read, preferably at the beginning of his career. "This book can prepare an investor for the mental game of Wall Street, that is, the inner game the investor’s mind plays with itself as he watches Wall Street whir around. It would be unwise to underestimate the importance of mental attitude and preparation to successful investing and trading. Be assured, the winning tennis player who has great conditioning, wonderful technique, great mechanical skills also possesses something the average tennis player does not have: a diferent mind and attitude. The same thing is true of effective traders. Through the careful study of and application of this book, in conjuntion with The Technical Analysis of Stock Trends, the average investor can become an effective trader." W.H.C. Bassetti

For tomorrow.............

Thanks for the chart, but in future could you include the bottom line with the dates (or hours, if it's only one or two days)? Also, I'm sure you noticed that the top of your first box provided the midpoint for the second. Maybe a coincidence, maybe not.

I found this post on "How to Get the Most Out of a Trading Room." interesting and have nominated it accordingly for "Topic Of The Month March, 2009"

While I welcome the participation, you guys do realize that you're in the Wyckoff Forum, right?

And today................

For tomorrow..........

You needn't go elsewhere. While much of what is here is geared toward the daytrader (i.e., someone who closes his trades at the end of the day, but who may hold those trades for hours, not just seconds) or short-term trader, there is also much that is timeframe-independent (see the Wyckoff Forum, in particular, or perhaps the Market Profile Forum). How long you hold something depends on your goals, and developing clear goals is a large stumbling block for many traders, whether new or not. Given your flexibility in how long you intend to hold your trades, this is as good a starting place as any.

Mixing Perspectives At the end of May, the QQQ was at $30, which was around the low September-October levels. You reasoned that this was a fantastic opportunity to go long, because the price was bound to move up after hitting such lows. And so you bought, risking the maximum capital you were willing to lose on any one trade. It's mid-June now. The price is $27.53. You were planning on investing for the long-term to meet your profit objectives, right? Many traders face the problem of what's known as mixing perspectives. Suppose you're planning on building a long-term portfolio and are preparing to make some investment entry decisions. Would you limit your analysis by only looking at this week's price patterns? Of course you wouldn't. You'd want to look at the long-term patterns and perhaps use this week's price patterns as supporting information to enter the trade with maximum precision, if you use them at all. The issues that can be caused by mixing perspectives are fairly clear in this case, but they aren't always. Novice traders often make the mistake of entering a trade with a strategic methodology that conflicts with the original perspective used to analyze the trade. For instance, they'll analyze a potential decision in terms of a long-term strategy but act as if they're executing a short-term strategy. The trader who mixes perspectives will inevitably set inappropriate stop losses and profit objectives, and therefore will be likely to stop out and take losses, only to see that his original analysis turned out to be correct (in our example, over a longer term). And that's when the trader will start thinking, "I should have waited. I got out too soon." Mixing perspectives can cause a series of problems for the trader. As the trader takes losses, he develops an aversion to sticking to stop losses and minding profit objectives. He'll try to unjustifiably stay in a trade for more or less time than he's planned, because he feels he needs to make some sort of an adjustment. Additionally, immediate losses due to stop outs can indirectly cause a breakdown in the trader's confidence in his analysis, and therefore in his trading ability. The key is to make sure that the perspective you take when you're analyzing a trade is the same perspective you use when you set stop losses and profit objectives to act on that analysis. --Innerworth

I don't know who wrote this, but it's a poor example. One doesn't start with a new high and begin the analysis there. One must look at the context, and the industrials -- unless one is severe with the trendline (the tl from '95) -- never even broke its trendline. But even if one were to draw the trendline so that price broke it, price recovered quickly and never broke the last reaction low. This isn't to say that one can't look to the transports and utilities for guidance, but there's more to it than this.

While that may be true, the transports are in the same condition as the industrials. Why are you using ten-year-old charts?

Also when one creates them. These were done last weekend. Did you mean to post a chart of the Dow utilities?

Congestions become important due to the S and R they provide (because of all the trading volume that takes place there). Sometimes they're no more than a speed bump. At other times, they present an impenetrable block. Midpoints can also be important as they represent the "equilibrium level" within that particular range (or consolidation or congestion). Here's the Q, for example:

The post was made to a private group, but it didn't amount to more than "here are some charts". They're pretty much self-explanatory. As to "the same fix", they're all in downward channels -- as you pointed out for the ES -- and they all have those congestion zones to contend with. And though it's not in the chart, the volume of advancers has been relatively weak.

You may be interested in some charts I posted Sunday. All the major averages are in pretty much the same fix (the boxes are drawn around consolidations). And so far, everything is going as expected.