Trading The Wyckoff Way

[Gringo 10]

I suggest 30 and 27 are too trivial for a move this strong. But nothing's lost by watching them. When price stops, there's a reason.

 

Db

 

 

Yes, these are just in case. They are quite insignificant, like an embryo at the onset.

 

Gringo

[DbPhoenix 42]

Oh! I see what you mean. More to think about.

 

Thanks.

 

Gringo

 

Look at the entry off the DT at 70. That's what the PA is supposed to look like. If it doesn't look like that, then get out of it, at least until you have thoroughly dealt with your fear issues.

 

Db

[tomerok 10]

And how is it helping you in RT? The R is being provided by TRs, not TLs, particularly since the latter are being drawn in hindsight.

 

Db

 

not sure about TR (assuming it's trend resistance)

i once read a post describing the jargon used in one of the threads but could not find it now.

 

i draw trend lines to try and predict "where" R or S will appear, R in a down trend and S in an uptrend.

 

eventually the PA in those areas (next to to TL) is what matters.

 

i extend the TL further more on my charts (to get the trajectory ), on tick charts i find it pretty accurate in the NQ, especially in trending days.

 

Tomer.

[DbPhoenix 42]

This is what's called "preliminary support", i.e., buyers buying on the way down.

 

Db

[DbPhoenix 42]

not sure about TR (assuming it's trend resistance)

i once read a post describing the jargon used in one of the threads but could not find it now.

 

i draw trend lines to try and predict "where" R or S will appear, R in a down trend and S in an uptrend.

 

eventually the PA in those areas (next to to TL) is what matters.

 

i extend the TL further more on my charts (to get the trajectory ), on tick charts i find it pretty accurate in the NQ, especially in trending days.

 

Tomer.

 

TR refers to Trading Range (see the Glossary). And, as I've said, diagonal lines, whether they're trendlines or demand/supply lines, don't provide S or R. If you want to know where S or R will appear, look at the TRs. You may think that the TLs are providing S and R, but you're throwing virgins into the volcano.

 

TLs and DLs and SLs have jobs to do and they do them well. But they don't provide S or R, only the appearance of it.

 

Db

[DbPhoenix 42]

Traders off to lunch. Whoever is left behind is turning this into an area of S. Who knows? May have left the computers on standby until lunch is over.

 

Db

[tomerok 10]

TR refers to Trading Range (see the Glossary). And, as I've said, diagonal lines, whether they're trendlines or demand/supply lines, don't provide S or R. If you want to know where S or R will appear, look at the TRs. You may think that the TLs are providing S and R, but you're throwing virgins into the volcano.

 

TLs and DLs and SLs have jobs to do and they do them well. But they don't provide S or R, only the appearance of it.

 

Db

 

Thank you

 

Please feel free to move this to the TBP if it's more appropriate.

I'm trying to change the way i look at price action.

i noted on the chart today's price action. is it better / more correct to look at price action this way?

 

Tomer.

[DbPhoenix 42]

Thank you

 

Please feel free to move this to the TBP if it's more appropriate.

I'm trying to change the way i look at price action.

i noted on the chart today's price action. is it better / more correct to look at price action this way?

 

Tomer.

 

It's more appropriate to the Wyckoff approach. But what is better is whatever makes you the most money. And that may be a strategy based on TLs.

 

Never forget, however, to distinguish between what's in the market and what's in your mind. Price action is in the market. You have no control over it. It will range or not. It will double-top or not. All you can do is watch.

 

Whatever you draw on your chart, however, is in your head. The market doesn't know about it and couldn't care less. All it cares about is what it's done itself: where it's been and how it got there. It will reach a price that it just reached a few minutes ago and buyers will not be able to push it past that price, regardless of what you think about it. You may draw a line across that price level to give you a point of departure, but the market doesn't know and doesn't care.

 

What matters is not that price can't get past your line but that buyers can't push price past the previous high. It's not the line that matters. Some other trader might draw some other line. But whatever line this or that trader might draw, it's traders' behavior that moves price. If traders can't advance price, then you have a potential short, regardless of what you have or haven't drawn on your chart.

 

Db

[franko 10]

the green and black lines are what i have for numbers below.

they cover a lot of territory for so few.

[DbPhoenix 42]

I have 30, 27 and 22 as the next possible levels. The pace has increased for price, chance for some kind of capitulation? I don't have volume anymore so will have to see price behaviour only.

 

Gringo

 

Looks like you were right about 30. Way to go.

 

Db

[Gringo 10]

The Grinkoff Indicator, which involves a synthesis of overbought/oversold, price/volume and momentum has started to produce respectable results. It was the indicator that alerted me to the support at 30.

 

I'll be testing it more rigorously in the coming weeks but am in a hurry today to catch an express train to my vacation spot from platform 9 3/4.

 

Gringo

[blocp 10]

here is my analysis for the day.

[tomerok 10]

10.10.2012

 

Good morning

Changed all of my charts to tick based.

 

After the drop yesterday price is ranging around a major S from the past.

Below multiple SLs

 

Areas of interest

 

R @ 2740

Above 2745 no visible R until 2760

 

S @ 2730

S on the way down

2725

2716

2706

2695

 

Tomer.

[tomerok 10]

The Grinkoff Indicator......

 

Gringo

 

Gringo

you had me with this one, i smile every time i read the post..

 

:thumbs up::thumbs up:

 

Tomer.

[Gringo 10]

Gringo

you had me with this one, i smile every time i read the post..

 

:thumbs up::thumbs up:

 

Tomer.

 

Tomer,

 

You're in the Wyckoff forum. Expect some magic.

 

Gringo

[Gringo 10]

Levels:

 

2720

2700

 

There's also this 2727-2737.5 TR which I believe just might prove interesting for today.

 

 

 

There is enough room in the 2727 -2737.5 TR to be playable.

 

Gringo

Edited October 10, 2012 by Gringo
changed the 2736 to 2737.5

[DbPhoenix 42]

The DT at 38 a few minutes ago was the "textbook" entry. Perhaps a RET here.

 

Db

[Gringo 10]

It's gone. I didn't think of compromising an entry around 35-36 but was tempted.

 

There are quite a few lurkers in the Wyckoff forum. For those interested in trying a chat can try the below link.

 

Your Own Chat - Free & Easy! • » stinto.net «

 

Gringo

[TradeRunner 10]

what the problems are and (b) propose remedies for these problems

 

Reversal Setup Summary:

• 
  A double bottom/top on the 1m chart.
  

• 
  A HL/LH on the 1m chart.
  

• 
  I want to see buyers/sellers coming in aggressively and rejecting price at least 4 ticks
  

• 
  This can take place in a 3 tick range from the level I plotted, so If i S at 40, I will take the reversal between 43 and 37
  

 

Problem 1:

You are trading against the trend when catching reversals but that isn't the problem. If you waited for the new trend to be confirmed then you are not trading the reversal. A 4 tick rejection is not always enough and means that you enter on a smaller scale HL/LH or double bottom/double top that is on a smaller scale than the wave you are trying to catch.

 

For example this is the FGBL line chart for 13/8/12:

 

 

Solution:

Only trade HL/LH double bottom/top that are proportional to the wave you are trying to catch. Maybe a rule about how far up the down swing the rejection gets? Perhaps also something about how long it takes to retest?

 

TradeRunner

Edited October 10, 2012 by TradeRunner

[DbPhoenix 42]

How much backtesting have you done of this setup to determine whether or not it's valid, i.e., how many days over how many months over how many quarters?

 

Db

[tomerok 10]

11.10.2012

 

Good Morning

 

A clear TR from yesterday, and a smaller one at the afternoon session (was not sure about that one)

$ bounced back up to yesterday TR

 

Areas of interest

R @ 2747

S @ 2737

major S @ 2716-2714

 

Tomer.

[blocp 10]

here is my analysis for today, I am going to have a good look at which levels areas play out best as I seem to have so many choices on what levels to pay attention to during the session.

[DbPhoenix 42]

here is my analysis for today, I am going to have a good look at which levels areas play out best as I seem to have so many choices on what levels to pay attention to during the session.

 

This is quite a mess. Unless price makes an attempt to fill that airpocket to 67, you may want to just watch today.

 

Db

[Gringo 10]

2720 to 2752 seems to be the range for today.

 

There are multiple S/R along the way.

 

Yesterday's link to the chat is still functional and traders have gathered there already.

 

 

 

2752

2746

2744

2737

2727

2722

2719

2716

 

Gringo

[DbPhoenix 42]

Don't overlook the fact that jobless claims have thrown a monkey wrench into the works.

 

Db