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

Do you know all of this to be true from your own experience? Is it something you can rely on for entry, trade management, risk management, exit?

Db

I'm sure you realize that providing my own charts to tell me what happened prior to what you post takes time. Scrollling back through all these posts looking for previously posted charts also takes time. I don't always have that time. Therefore, I'd appreciate your showing me the context. S/R depends on everything that went before, not just what happened a few minutes ago or a few hours ago.

Db

My "experience" has only taught my that I'm wandering around in circles.
I didn't mean anything by saying fractal behaviour, only that I believe it doesn't make much difference for studying a theory if you're using 5, 15, 60 minutes... Of course using different time frames implies different stop sizes, targets, entry points,... I only switch to greater time frames to compare, not to enter. Entering a trade is on 3 minute chart.

I completely understand you don't have the time to go all through that, moreover I already find it very pleasing to get so quick responses. I don't want to pressure you in any way, I'm justing trying very hard to learn and so far I'm not succeeding in applying the theory.

About context, I've always posted multiple related charts together I believe like in #40, I'm usually posting a weekly, monthly and daily one so you can relate and put things in greater perspective. In case you were suggesting I also post a yearly chart, I just added one to the original post.

I suggest you go back to the goals you posted earlier -- which were relatively general -- and be more specific about just what it is you're trying to accomplish. I don't know, for example what you mean by "applying the theory". The theory of what? Apply it to what?

If you already have a trading plan, you need to post it. If you don't, then you need to be specific about the hypothesis or hypotheses that you're testing. If you're not ready for any of this, then translate and organize everything you're confused about or frustrated about into a series of specific questions, then set about answering them, preferably one by one. Otherwise, you are likely to flounder.

Db

The basic principles of demand, supply, support, resistance, trendlines. I mean I'd like to stick away from indicators, mathematical ways to predict market movement, fundamental analysis, scalping,... With "the theory" I'm not implying anyone's theory in particular, just that I want to gain an "understanding" of the market. I want to be able to explain why the market moves up, down, turns at a point, drops below a line. Perhaps I'm aiming too high, but I have a great urge to understand things, I'm very eager and curious.

Let me put it this way: whenever I'm faced with a fascinating problem in nature, maths, physics, economics, statistics I've always wanted to comprehend it fully. Not just apply the principles, but understand WHY. This has sometimes caused me quarrels with professors who wanted me to just "take things for granted" instead of asking why. But that's just who I am. I don't want to be like a robot and click my mouse to enter a trade whenever I see line A crossing line B with MACD indicating x and RSI being y...


I have some stuff written down, I also used a template from this forum to complete it, but I don't see any use in uploading a 10 pages document. The main purpose for opening a journal was to discuss charts, have practical examples illustrate the forces of supply and demand.
But you're heads on, I'm loosing sight of the forest.

I've got to say that these S/R lines that you're drawing are only the smallest part of what makes a system - i.e. the entry. At the entry you can't make any money it's just a level. The close is far more important. Put another way you must have a statistical study of exactly what you expect price to do once it is triggered by one of your lines. Only then can you make money with your system. You've got to get all of these aspects concrete. Do you agree?

Understanding the "why" is not necessarily a negative. However, you're trying to understand all of this at the same time that you're trying to apply all of it to a trading strategy. In other words, you're putting the cart before the horse.

Therefore, the first choice you have to make is whether you want to understand why price moves as it does OR develop a consistently profitable trading strategy. If you can't do the latter without first doing the former, then I suggest you stop trading entirely until you've scratched whatever itch you have regarding theory.

Db