Firewalker's Journey: A path of discovery in search for enlightenment

db, early recognition of apex bar as it closes .......is that worth pursuing? thanks

firewalker,

Please excuse the db question from me.......i didn't mean to be rude interruptor ...just a stop loss setting remark triggered by the death by a thousand cuts response..too close to home for me...I believe stop settings are very critical to trading success.... ..the loose stop/trailing stop being set just to "get out of the way" is just as dangerous as the tight stop or the mental stop for any but the few...i am not one of the few...all remarks IMHO.. best wishes .ymonly

Yes. The earlier you can get in, the tighter your stop can be. However, one must study a hell of a lot of these "bars" (actually parabolic waves) in order to achieve a satisfactory -- for him -- probability of being right. He must avoid being sucked into a counter-trend trade. He should be open to the possibility of an SAR but not be tricked into exiting his original position too early.

So, whether one tries this tactic and benefits from it will depend on how much research he's willing to do.

Db

You're absolutely right that was not consistent, but let me explain. I decided to see where I would draw S/R lines on each chart separately. Any lines I believed to be there were marked independently of what I saw on the chart of the previous week and month with the purpose to see if I'd were able to mark similar points. Apparently not... I do have however a question about consistency: 5675 seems an important level, than shouldn't the line on the monthly (first) chart to the left be situated around 5675 instead of 5662.50? Furthermore on the (third) daily chart you drew a line at 5650, although there is no reference to that on the other charts so this one does come out of nowhere?

Finally, are the grey lines meant to indicate zones or did you have something else in mind?

The following represent what I would have done to prepare for the 4th and what I would have drawn during the trading day on the 4th. It is not THE way. It is A way. It provides me with focus but not blinders.

5650 is not drawn on the first two charts because I would have seen nothing in the first two charts to suggest that 5650 was important.

The grey lines are those that you drew which I adjusted or did not use.

Please find the replies to your questions:

1) What is "near"? A point? Two? 5%? 10%? Are you shorting all your contracts at once?
Near = exactly to that point
Entering a trade is immediately with two contracts, exiting is done following fixed targets based on ATR as described.

2) Again, retrace how close? Short more contracts? How many?
Retracement to that same level, so exactly as it reaches 5690. For the moment I'm not adding to a position nor averaging down. So if I were to be in a trade that would be one going in the right direction and I'd leave it alone. If I wasn't in a trade at that time, I'll enter now.

3) Ditto re "retrace" and "short". "Wider" than what? How many is "a lot"?
For "retrace" and taking on a position I refer to my answer on point 2.
Wider = spread at least double than the down bars before.
A lot is at least 3.
"unless you see wider spread up bars or a lot of up bars closing near the high"
should have been: "unless you see a min 3 wider spread up bars closing near the high"

Because you already found my "plan" fairly complex, I didn't want to add to that be specifying further details...

I'll see what I can do but my broker doesn't allow access from Saturday till Sunday evening (system updates,..)

Sorry, I knew those were mine, I just wondered if you had any special intention by putting them grey instead of removing them from the chart. No problem.