SLAyers' Notes

This is a discussion on SLAyers' Notes within the Trading Journals forums, part of the Reception category; None of it. Neither the SLA nor AMT is designed to facilitate scalping. The SLA is designed to make the ...

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Old Oct 3, 2015, 5:00pm   #31
 
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dbphoenix started this thread None of it. Neither the SLA nor AMT is designed to facilitate scalping. The SLA is designed to make the most out of trending moves.
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Old Oct 4, 2015, 2:55pm   #32
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I mentioned a hinge Friday, I believe, and thought I would upload a chart for scrutiny.Click the image to open in full size.
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Old Oct 4, 2015, 5:09pm   #33
 
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dbphoenix started this thread For those NQ traders who've been wondering why 4225 has been such a stumbling block:
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Old Oct 4, 2015, 5:21pm   #34
 
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dbphoenix started this thread From the attic:

As I go over a lot of the Wyckoff material,it seems to me that “they” (Wyckoff and/or people applying Wyckoff principles) analyze each and every bar to find meaning.

I can speak only to Wyckoff since so many of those who claim to apply "Wyckoff principles" to their work don't do anything of the kind. But Wyckoff did not "analyze each and every bar to find meaning". The bar was simply a means by which he told a story.

What you get out of all this depends on what you want from it. Think of it in terms of learning how to operate a car. You can buy, rent, or borrow a car from somebody and arrange for that somebody to show you how to make the car go, how to make it stop, how to make it go left and right. At some point, you may become more interested in the why and watch somebody rebuild an engine or transmission or even assemble an entire car. If you become even more interested, you may end up building a car yourself.

Or, if the mechanical is not appealing, look at the process in terms of fine art. You can go to a gallery and buy something. Or if you want to know more of the process, you can watch somebody create the work. Eventually, you may study and learn how to create one yourself.

Applying these analogies to understanding price action should not be a great leap. Think about it.

I would say I am in the "building the car" stage. To me, this stage forces me to question some or all the material (and with "material" I also include looking at tons of charts, EOD as that is what I trade) I go over in order to develop a deeper understanding. Sometimes what I read makes complete sense, but other times it makes no sense at all. I don't want to take a shortcut with someone telling me to put on a trade here or here, but I am still (and will probably always be since your never reach complete mastery...) at a stage where I need some 3rd party input to develop a deeper understanding.

You may be in the "building the car" stage, but it is not necessarily the Wyckoff model. The apparent emphasis on bar-by-bar analysis -- or candle-by-candle -- in some of the material will mislead those who go no deeper and motivate them to study bars/candles, looking for volume bars of given heights and price bars/candles of given lengths and mixing all of that with the positions of closes in order to find guidance for subsequent trades, even to the extent of developing mechanical systems, even software.

Wyckoff's approach, however, is based on (a) continuous price movement that (b) moves in waves that are determined by (c) imbalances in supply and demand, or buying pressure and selling pressure. The statements that he makes with regard to bars are not the result of studying bars but of twenty years of following the tape. The charts or "graphs" he used were merely summaries of everything he learned through watching the tape. Anyone who attempts to develop an understanding of the continuity of price movement and its wave structure without actually looking at it is going to be at a disadvantage when compared to the individual who watches price move tick by tick and who watches volume ebb and flow along with those price movements.

Building the Wyckoff car, then, is not a matter of assembling volume bars of varying heights with price bars of varying lengths and welding them with closes in varying positions. One might come up with something that holds together, but it wouldn't go anywhere (this helps to account for the thousands of posts which can be made with regard to this sort of variant with the net result that participants still don't understand it and still can't make it "work"). Building this particular car requires a familiarity with and an understanding of the continuous movement of price. Unless and until the individual develops this understanding, the Wyckoff approach will likely be very frustrating.
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Old Oct 4, 2015, 7:43pm   #35
 
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dbphoenix started this thread Regarding the chart two up . . .
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Old Oct 6, 2015, 1:07pm   #36
 
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Old Oct 6, 2015, 10:10pm   #37
 
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dbphoenix started this thread And price reverts to the mean:
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Old Oct 7, 2015, 1:13am   #38
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When trading longer time frames like the daily/hourly, we noticed yesterday Price was halted at S/R. If expecting a reversal, at what point does one decide to short? As soon as price ticks lower this morning, do you go down to a 15 min chart and wait for a test? Or do you wait for a break of the TL like below at the shaded oval? Or wait for another test of that TL which could end up being 20 points lower?

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Old Oct 7, 2015, 1:52am   #39
 
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Originally Posted by EldnitJ View Post
When trading longer time frames like the daily/hourly, we noticed yesterday Price was halted at S/R. If expecting a reversal, at what point does one decide to short? As soon as price ticks lower this morning, do you go down to a 15 min chart and wait for a test? Or do you wait for a break of the TL like below at the shaded oval? Or wait for another test of that TL which could end up being 20 points lower?

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Your questions are valid and are based on risk tolerance of the person trading. Once you have the fear issue resolved a point here and there isn't such a big deal. If you are using pure SLA as shown in the pdf then you ought to read it again. The entries and exits are quite clearly shown as far as I can recall.

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Old Oct 8, 2015, 2:15pm   #40
 
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dbphoenix started this thread While trading is simple, it is not easy, and beginners often make it more difficult than it already is by virtue of the choices they make.

Inattentiveness is a common cause of couldawouldashoulda. The most obvious solution to this is to determine just what one's attention span is, i.e., for how long a period one can maintain maximum attention and efficiency, then trade for only that length of time. However, it's not all about the trader. The market has something to say about all of this as well. And that's where Wyckoff comes in: find the market or instrument that's most likely to (a) move, (b) move the farthest, (c) move the fastest.

Say for example that price moves at or about the open from R to S in only 45m. It then rallies back to R in 30m. It then takes three times as long, 90m, to revisit S. then three hours to get back to R. So if one has attentiveness issues, when ought he to be trading? When is the market most ready to move? When does it move the farthest the fastest?

One can, of course, elect to trade during that period of the day which is most inappropriate for his "style" , but doing so will involve unnecessary struggle, which will often lead to "fear", at which point the trader will focus on dealing with his fear, when a more pertinent concern is the choice of the interval in which he's trading.

The fear, in other words, is often an irrelevance, the result not of deep-seated neuroses which fatten the pockets of psychologists and counselors but rather of poor choices. If the trader were to alter his trading environment, he would very likely find that his fear evaporates.
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Old Oct 8, 2015, 7:52pm   #41
 
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dbphoenix started this thread Without problems that test the limits of your abilities, you cannot expand them.

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Old Oct 9, 2015, 2:13pm   #42
 
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Old Oct 9, 2015, 2:17pm   #43
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Please can you describe what you would prepare for next and how you would do it?

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Old Oct 9, 2015, 2:37pm   #44
 
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dbphoenix started this thread If price breaks through the SL, the short is done. If the breakout fails, then another short is on the table (a long won't be taken until the first retracement). But given that the first short op was in August, a short here would by any definition be late. Therefore the trader who is past the primer level must decide how much room to give the trade, the first hurdle being the last swing high in September. If he prefers to exit, that's his prerogative.

The hourly:
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Old Oct 10, 2015, 2:55am   #45
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If price breaks through the SL, the short is done. If the breakout fails, then another short is on the table (a long won't be taken until the first retracement). But given that the first short op was in August, a short here would by any definition be late. Therefore the trader who is past the primer level must decide how much room to give the trade, the first hurdle being the last swing high in September. If he prefers to exit, that's his prerogative.

The hourly:
Db, here you say wait for a retracement to go long but in your SLAB pdf under Wyckoff and Auction Market Theory on page 63 in Crib Notes it says, When price breaks out of the range, either trade the breakout or wait for and trade the retracement. why do you say a long will not be taken until the retracement above? I understand a BO could always turn out to be a fake out and a retracement would be a safer entry. Am I misunderstanding something?
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