SLA approach for NIFTY50 Index

[dbphoenix]

A DL will help, but understand that the best opportunities are at the extremes, i.e., the upper and lower limits of your weekly/daily trend channel. Once you enter the channel, you enter chop as soon as the directionality deteriorates. The less directionality, the longer the bar interval you should be using, in this case the hourly.

Db

 

[Insursi]

A DL will help, but understand that the best opportunities are at the extremes, i.e., the upper and lower limits of your weekly/daily trend channel. Once you enter the channel, you enter chop as soon as the directionality deteriorates. The less directionality, the longer the bar interval you should be using, in this case the hourly.

Db

Yes Db, I am waiting patiently for the price to reach extreme TC to make potential trade rather than getting into middle of the trend where my risk is much as you said earlier. I marked my observation on 15mins chart in the earlier post for only learning purpose since the price was in range.

 

[Insursi]

Wyckoff doesn't use "demand lines" and the SLA doesn't incorporate volume. In any case, Wyckoff would most likely be more concerned with the present and the immediate past rather than with what happened seven years ago.

What exactly are you trying to determine that will help you make a decision tomorrow?

Db

This info from other thread but for my diary. Sofar I misunderstood that SLA also developed by Wyckoff.

 

[dbphoenix]

This info from other thread but for my diary. Sofar I misunderstood that SLA also developed by Wyckoff.

It's based on Wyckoff, but written by me, about six years ago, partly to eliminate from Wyckoff's course what was unnecessary in an internet environment, partly to eliminate what was confusing and unnecessary, partly to modernize the language, partly to include auction market theory.

Db

 

[Insursi]

After a long wait, today I have taken a trade

Nifty50
Weekly: Reached the upper channel ... looks like new channel emerging which I have marked on the chart itself in red color.
Daily: Reversed from upper channel after a week of consolidation near the supply level. Trend line broke
Hourly: Climax buying and retesting has seen nicely on hourly chart with volume. TL broke and Short trade taken at 7750 level.

 

[Gring0]

Insuri,

The climax and test highlighted don't appear to be making sense to me. Just because volume is higher doesn't mean a movement is a climax. The direction of the movement also plays a part in seeing which way the pressure is coming from or those getting exasperated are exiting their positions.

I pay less attention to climax and retest and more on the AMT-SLA aspect of price movement. Why a retest as shown and not 6 bars earlier? There appears to be a lack of cohesion in your thinking. It is understandable that it takes a bit of time to clear things in the mind and you'll get better with time. My own experience is that once I looked at price without volume did clarity manifest. Now I can see volume without getting overwhelmed by it. Price is key, volume is secondary.

Gringo