SLAyers' Notes

[ledgy]

Db,
When trading shorter time frames, 30 min, 15 and 5, I assume you still take longer term time frames into account? A very good short or long trade can look great until do span out into longer frames. How much confluence do you look for if it's overbought on the 30 min but undersold on the daily?

Until you span out on longer frames, sorry, sat night, drinking !

 

[dbphoenix]

Db,
When trading shorter time frames, 30 min, 15 and 5, I assume you still take longer term time frames into account? A very good short or long trade can look great until do span out into longer frames. How much confluence do you look for if it's overbought on the 30 min but undersold on the daily?

By "time frame" I assume you mean bar interval. 30m is a bar interval, unless all your trading begins and ends within a 30m time span. My time frame is five years. The daily bar within that time frame provides the cue. The trade is then managed via the hourly.

Within the hourly, the bar interval is irrelevant given that all charts are tick charts. What matters is the continuity of price, not how one chooses to view it. If he is not in a position to view it, daytrading is not an option. If you have the book, see "Continuity of Price" in Notes, p. 18. As for using the daily as a cue, see "Trading Opportunities", p. 49 (Friday's trade is also an example and I'll probably include it in the book this winter).

As for moving from shorter bar intervals to longer, you have it reversed. Weekly>Daily>Hourly. Those who are in a position to move price trade weekly and daily intervals, not intraday. The task is to understand what they're doing and follow them. Friday, again, is a good example of this.

"Overbought" refers to whether and how much price has become extended through the upper limit of a trend channel or range. I don't know what "undersold" means. As long as the Danger Point (p. 65) is holding, the trade is left alone until price has changed stride. Changing and reversing stride is addressed in the pdf I posted at the beginning of the other thread.

Db

 

[Gring0]

NQ is flirting with the all time high of 4690. The area is worth keeping an eye on if only to improve one's understanding of behaviour at important levels. Price did go below the swing low but demand did show up. There was a breach of the DL but so far price is still heading up. Whether this turns into a weakness or a BO into new highs is yet to be seen.

Gringo

 

[manraygun]

NQ is flirting with the all time high of 4690. The area is worth keeping an eye on if only to improve one's understanding of behaviour at important levels. Price did go below the swing low but demand did show up. There was a breach of the DL but so far price is still heading up. Whether this turns into a weakness or a BO into new highs is yet to be seen.

Gringo

Is 77 no longer an important R level given Friday's price action? I've been watching for a second attempt at and successful BO above 77 but it sounds like 90 (ATH), is now the key level. As such, I'd imagine a break and retrace above 77 (but below 90) on the hourly would not be a good long op. (Moot question perhaps as price is now above 94.)

Thanks.

 

[Gring0]

Is 77 no longer an important R level given Friday's price action? I've been watching for a second attempt at and successful BO above 77 but it sounds like 90 (ATH), is now the key level. As such, I'd imagine a break and retrace above 77 (but below 90) on the hourly would not be a good long op. (Moot question perhaps as price is now above 94.)

When price didn't even flinch at 77 I didn't give it any value. Now price is at new high. DL needs a reset.

Gringo

 

[dbphoenix]

77 and the DL are no longer pertinent, at least the previous DL. The short was exited this morning at the break of the hourly SL (as the hourly was used to enter the short in the first place), then the first retracement was bought at or about 50 (note the double bottom after the NY open), at which time a new DL could be drawn.

Sorry to keep repeating this, but it's really just a matter of following the rules. The market will tell you what's important and what isn't. But you have to listen.

Db

 

[manraygun]

77 and the DL are no longer pertinent, at least the previous DL. The short was exited this morning at the break of the hourly SL (as the hourly was used to enter the short in the first place), then the first retracement was bought at or about 50 (note the double bottom after the NY open), at which time a new DL could be drawn.

Sorry to keep repeating this, but it's really just a matter of following the rules. The market will tell you what's important and what isn't. But you have to listen.

Db

Was the long held through the break of the DL (around 930) on account of the danger point being set at 41 or so? It's easier for me to see on the 15 min chart so I've included it.

 

[Gring0]

LL calls for a new SL.

 

[manraygun]

LL calls for a new SL.

I see, so even if you held the trade through a break of SL you would draw the new one on a LL.

 

[dbphoenix]

A beginner or damaged trader would exit at the break of the SL. If the trader is able to progress beyond that level, he learns through experience and keeping records of his observations and trades how far price can break the line and still stage a continuation. And if it goes farther than that, the probabilities shift toward a reversal.

This varies, of course, according to the instrument traded and the bar interval used.

Db

 

[dbphoenix]

This is the same sort of thrust-and-failure that we had the last time the DL was broken, last week. After the DL break, the trader either looks for a retracement to enter the short side or enters N ticks/points below the DP. His choice. That choice will depend in part on whether he's actively trading or he's still in bed. Chinese SLAyers will have a different perspective than Americans.

Db

 

[dbphoenix]

An illustration of AMT:

 

[dbphoenix]

And another:

 

[dbphoenix]

And the DAX

(And what can one who trades "the middle" expect from his trading day . . . )

 

[dbphoenix]

On the other hand, the CAC . . .

 

[dbphoenix]

And another:

And then . . .

 

[dbphoenix]

Revisiting the DAX . . .

 

[dbphoenix]

And the CAC . . .

 

[dbphoenix]

The hourly and the 1m work together.

 

[dbphoenix]

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