Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

UrmaBlume

The Reversal/Confirmation/Continuation Trading Continuum

Recommended Posts

Today at Approx 10:55 nailed the low of the ES session, there was all the criteria needed to pick that bottom;..FROM the 1K only.....Large intensity spike divergence on the V94, and then it went up from there! will post a screen shot of the 1K, or if you have a shot of this, and the other frames...Question - I didn't notice any imbalance on the 8K / 12K / somewhat noticeable on the 5K How would I have gotten this using the higher time volume frames? as I didn't see any divergence on these volume frames...

 

The markets are defined by a Price/Time Volume Continuum.

 

Speculative Trend Following Trading is best done via a Reversal/Confirmation/Continuation Continuum.

 

At 1055 EST or 0755 PST there was indeed a bottoming spike and a divergence in the fastest time frame. At the same time there was a positive divergence in the 24k chart.

 

The order of the trading continuum is that first comes signs of a reversal. If the first signs of the reversal are not strong enough for you to enter you can wait for a confirmation of the reversal which is a set of Higher Lows or Lower Highs in both price and the indicators and enter on confirmation.

 

If you miss both the Reversal and the Confirmation trades you can again enter on inciations of Continuation as described here.

 

It is up to each trader to collate the information from different time frames and different indications into his trading decisions. While oftentimes the information is not perfect, more experience will help the trader to find more good trades.

 

Yesterday's low was a perfect example of this Reversal/Confirmation/Continuation Trading Continuum. First came the signs of reversal with the spike in commercial trade velocity and next that reversal was confirmed by a series of higher lows and higher highs in both price and net new trade and in multiple time frames. These higher lows and higher highs continued throughout the sesssion for over 20 points, offering several great Continuation Trades.

 

Reversal

Confirmation

Continuation

 

Again the market is defined by a Price/Time/Volume Continuum and Trend trading is best conducted via the Reversal/Confirmation/Continuation Trading Continuum.

 

cheers

Share this post


Link to post
Share on other sites

By coincidence I use a similar sequence that I call the "afternoon reversal"

 

Works on a tight time frame and is very simple to trade

 

Today was nearly picture perfect with the first trade kicking off at noon PST

and the reversal (called the "clean up") taking off from runway #1 at just after 12:30pm

 

Good luck everyone

 

Steve

5aa710b0c12a8_AfternoonReversalSequence.thumb.PNG.edfa1e0b64a4ce016a0ac7a143d6adcf.PNG

Share this post


Link to post
Share on other sites

Steve,

 

A very interesting trade. Could you please explain the triggers/rationale for both entries?

 

If they have to do with the blue bands cound you please desecibe them and tell us "afternoon" time specs for the trade.

 

With nothing but unddefined blue bands and a couple of arrows the post leaves us wondering about rationale/system/method/triggers.

 

cheers

 

UrMaBlume

Share this post


Link to post
Share on other sites

I could do all of that Sir or Madam

 

The blue bands represent areas of previous supply and demand

 

The logic (rules for placement) like the logic to your own indicators is propietary, however it is relatively simple....

 

The broader logic to entry relates to behavior that many professionals have observed (apparently not you however)....The"afternoon specs" are time based...as mentioned in the post the signal for the trade occurs at (or near to) 1200 hours then again at or around 1230 hours....Pacific Standard Time....this is why it is called a reversal....

Edited by steve46

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • NFLX Netflix stock, watch for a top of range breakout at https://stockconsultant.com/?NFLX
    • SMCI Super Micro Computer stock watch, attempting to move higher off the 34.06 support area at https://stockconsultant.com/?SMCI        
    • UPST Upstart stock watch, pull back to 68.15 gap support area at https://stockconsultant.com/?UPST  
    • Why not to simply connect you account to myfxbook which will collect all this data automatically for you? The process you described looks tedious and a bit obsolete but may work for you though.
    • The big breakthrough with AI right now is “natural language computing.”   Meaning, you can speak in natural language to a computer and it can go through huge data sets, make sense out of them, and speak back to you in natural language.   That alone is a huge breakthrough.   The next leg? AI agents. Where they don’t just speak back to you.   They take action. Here’s the definition I like best: an AI agent is an autonomous system that uses tools, memory, and context to accomplish goals that require multiple steps.   Everything from simple tasks (analyzing web traffic) to more complex goals (building executive briefings or optimizing websites).   They can:   > Reason across multiple steps.   >Use tools like a real assistant (Excel spreadsheets, budgeting apps, search engines, etc.)   > Remember things.   And AI agents are not islands. They talk to other agents.   They can collaborate. Specialized agents that excel at narrow tasks can communicate and amplify one another’s strengths—whether it’s reasoning, data processing, or real-time monitoring.   What it Looks Like You wake up one morning, drink your coffee, and tell your AI agent, “I need to save $500 a month.”   It gets to work.   First, it finds all your recurring subscriptions. Turns out you’re paying $8.99 for a streaming service you forgot you had.   It cancels it. Then it calls your internet provider, negotiates a lower bill, and saves you another $40. Finally, it finds you car insurance that’s $200 cheaper per year.   What used to take you hours—digging through statements, talking to customer service reps on hold for an hour, comparing plans—is done while you’re scrolling Twitter.   Another example: one agent tracks your home maintenance needs and gets information from a local weather-monitoring agent. Result: "Rain forecast next week - should we schedule gutter cleaning now?"   Another: an AI agent will plan your vacations (“Book me a week in Italy for under $2,000”), find the cheapest flights, and sort out hotels with a view.   It’ll remind you to pay bills, schedule doctor’s appointments, and track expenses so you’re not wondering where your paycheck went every month.   The old world gave you tools—Excel spreadsheets, search engines, budgeting apps. The new world gives you agents who do the work for you.   Don’t Get Too Scared (or Excited) Yet William Gibson famously said: "The future is already here – it's just not evenly distributed."   AI agents will distribute it. For decades, the tools that billionaires and corporations used to get ahead—personal assistants, financial advisors, lawyers—were out of reach for regular people.   AI agents could change that.   BUT, remember…   We’re in inning one.   AI agents have a ways to go.   They’re imperfect. They mess up. They need more defenses to get ready for prime time.   To be sure, AI is powerful, but it’s not a miracle worker. It’s great at helping humans solve problems, but it’s not going to replace all jobs overnight.   Instead of fearing AI, think of it as a tool to A.] save you time on boring stuff and B.] amplify what you’re already good at. Right now is the BEST time to start experimenting. It’s also the best time to find investments that will “make AI work for you”. Author: Chris Campbell (AltucherConfidential)   Profits from free accurate cryptos signals: https://www.predictmag.com/     
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.