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Thanks Db and good call dismorning on the weakness in price action.

 

You're welcome, but I wouldn't term it a "call" in the sense of prediction. As price accelerates to the upside and angle of ascent increases, sellers have more and more difficulty finding buyers. That's why at any given price point there are so few trades. At some level, the "supply" of buyers just runs out and there aren't any more, and price returns toward the bottom of the trend channel, maybe a little higher than the bottom, maybe a little lower. It's all a part of mean reversion, though it has nothing to do with indicators. Mean reversion is what it is because sellers run out of buyers and buyers run out of sellers, so everybody turns their attention to those zones where the bulk of trades are being or have been made, which is usually the mean.

 

Db

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You're welcome, but I wouldn't term it a "call" in the sense of prediction. As price accelerates to the upside and angle of ascent increases, sellers have more and more difficulty finding buyers. That's why at any given price point there are so few trades. At some level, the "supply" of buyers just runs out and there aren't any more, and price returns toward the bottom of the trend channel, maybe a little higher than the bottom, maybe a little lower. It's all a part of mean reversion, though it has nothing to do with indicators. Mean reversion is what it is because sellers run out of buyers and buyers run out of sellers, so everybody turns their attention to those zones where the bulk of trades are being or have been made, which is usually the mean.

 

Db

 

I am kind upset at myself, I spent so much time months ago learning this indicator stuff, when I think my way of thinking correlates to what I been reading on this forum lately. buyers and sellers and interest locations. I have a lot to learn.

 

Db, does your book explain this with examples?

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I am kind upset at myself, I spent so much time months ago learning this indicator stuff, when I think my way of thinking correlates to what I been reading on this forum lately. buyers and sellers and interest locations. I have a lot to learn.

 

Db, does your book explain this with examples?

 

Many people spend years with indicators, so you're not alone. But this thread really isn't the place for that. As for examples, there are many times more examples available in various threads than would be possible in any book. If you're interested in the Wyckoff Forum, ask whatever questions you may have there in order to keep this thread on-topic.

 

Db

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long 1413, target 1417.75, stop 1411

 

Reason: overhead trendline just broke and retraced. trend is up of overall market,

 

I move to stop to breakeven and will let it run. So, far price action is holding up a demand line since dis-morning.

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I move to stop to breakeven and will let it run. So, far price action is holding up a demand line since dis-morning.

 

What demand line are you referring to? Today's was broken several hours ago. Not that that's a requirement for exiting. Just don't hold on for the wrong reason.

 

Db

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What demand line are you referring to? Today's was broken several hours ago. Not that that's a requirement for exiting. Just don't hold on for the wrong reason.

 

Db

 

Here is what I see below. I do recall a demand line broken earlier, but i redrew this about 2.5 hours ago to keep me in the trade.

5aa7112f8d9eb_SPX500(5Minutes)20120814163330.thumb.png.3a997e4aa1b584e9b2d06e2f8005b10d.png

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I move to stop to breakeven and will let it run. So, far price action is holding up a demand line since dis-morning.

 

Exit at 1315.75 for +2.75pts. Price action moves very slow at night.

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I hope you guys examine your emotional responses and your trading plans today (not necessarily here and not necessarily in public). They seem to be tangled.

 

Db

 

Can you be a little more vague?

 

Tangled with...?

 

Manihi

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And it fails.

 

Too bad we don't have a chat room anymore.

 

Db

 

That would be marvelous having a chat room.

 

I need to get in tune with the NQ as I do with the ES. The reason I don't trade NQ is because i feel I am not put the time in analyzing the chart, but its something I need to do. Cause NQ has a good range today, and it was a bit easier to trade dis morning from good support at 2790 I see.

 

On the ES, there was good support at 1417, but I started the computer a bit late, and got left behind. Lets see how far it wants to go. 1420 looks like good resistance that just broke.

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long 1417.50, stop at 1415.50. target1424. Would like to see 1420 breakout.

 

reason: trend is up and 1417 was support from overnight. And a trendline for additional support here.

 

I got stopped out -2pts

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long 1417.50, stop at 1415.50. target1424. Would like to see 1420 breakout.

 

reason: trend is up and 1417 was support from overnight. And a trendline for additional support here.

 

When you entered, the trend was down. And where is the "trendline for additional support"? Trendlines don't provide support.

 

Db

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