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walterw

The M phenomena

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Hello traders ¡¡ today has been a nice day to relax and enjoy this holiday, In relaxed fashion I become more contemplative and I use to make some reflexions on my trading career... its interesting that most people are thinking how to autoimpose their ideas autoconvincing themselves about some NEW MODERN trading concept...(including myself).... I found out that the best reflexion comes to remind yourself how did you make money consistently thru the years and remind yourself what technicall aspect gave you the edge in terms of dollars on your acct and not the hype sometimes we can have around very new and wow wow super modern original stuff.... it happens to me almost all the time... and probably I will need to make some decision, consagration event, maybe wear a ring to remind me or like kung fu take a hot iron on my skin, I dont know but as an indicator junki and addict I did not make a penny, BUT my KISS aproach I learned almost 7 years ago... that ALWAYS gave me money... jejejej thanks the Lord always I come to trade my original, and let me say maybe boring aproach.... but whats trading anyway ?... is it being original? new stuff that gets you exited ? always upgrading yourself and coming to the sad conclusion that you have more mambo jambo on your head ? WHATS TRADING ? its simply making money (period). its not being hyped, exited, auto impressed.... etc etc ... you trade to end each week with more dollars into your acct.... thats what trading its all about.... so coming back to my reflexion and making some balance, my old boring and simple no hype aproach has made me succesfull in this hard arena where very few succeed...

My old aproach is based on the M phenomena.... simple, markets have a cyclical nature and M (W ) are patterns that give you and amazing edge on timing your trades.... now some unexperienced trader may tell you the oposite and start showing you all the failed M`s.... well poor him... he is loosing a great oportunity to understand a great timing concept that MUST be considered on the context of a "market climate" wich can be divided into two big categories: Momentum Climate (trending) and Cyclical Climate (non trending) wich can be detected very easy with a simple perception of the market speed (maybe thats a tape reading concept) but I learned to see on very small tick charts.... now M`s are a high percentage "pattern" that work very well on the correct context.... let me make this simple : where do M`s dont work or have a very low chance of working, that is on a very high trending moves.... you dont wont to take m`s there.... now on a choppy day.... m`s are GREAT ¡ you can make your entire week objective on a choppy day just taking the m`s.... and let me tell you we statistically have more choppy days than trending days.. so that makes m`s even more reliabale as a pattern... you may ask What M`s.... well there are so many M`s and you may want to look for YOUR M`s.... you see the phenomena is universal, wich means that you can see it from a tick chart to a minute or daily, whatever.... they are there.... maybe on this thread we can share M`s from each and other traders perspectives.... the phenomena is there, it depends on you if you want to capitalize on it.... cheers Walter.

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Excelllent post though. But yea... paragraphs would help. :)

 

Walterw, with M's and W's do you have defined rules when the tests of the high/low fails by let's say over 10 ticks? Do you have specific rules for what defines a M or W?

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Sorry about the paragraphs.... it was holiday jejejej.... yes Soul, I do have a very nice set of rules, what happens is that this rules change depending on market conditions.... So determining market conditions starts the entire analisis... I have a second generation of rules also that will take continuations after a successfull M Pattern.... cheers Walter.

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walter, I remember you did share with us a word doc with charts of your trading approach. Maybe you can repost them so people can see and use it to start sharing the setup.

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