Recent content by dbphoenix

Don't become too distracted and misled by jargon. What looks like "preliminary supply", for example, is no different from other bars that result in a slight pullback. These are more easily labeled in hindsight than in real time. Nor is there anything "climactic" about the "buying climax"...

A system consists of (a) a set of rules that you use to select profitable positions and (b) a set of rules that you use to manage the trade once you're in it (whether you call it a system, a method, a strategy, a plan, a scheme, an approach, a procedure, or a modus operandi is not as important...

Lots of people don't use charts. They don't care about the information charts provide. They know what they paid and where price is in relation to that, and that's all they want to know. The daily ups and downs are of no interest to them.

In order to succeed at trading, you must have an edge. Your edge begins with the knowledge you gain through your research and testing that a particular market behavior offers a level of predictability that provides a consistently profitable outcome over time. To get it, you have to know exactly...

What data have you collected that provide you with the likelihood that an entry at $8.56 would achieve your objectives?

What is your trading plan?

A percentage stop as such is not likely to be successful as the market doesn't know how much you're willing to risk and wouldn't care if it did. A more "market-wise" stop, in an uptrend, is the last swing low, reason being that this is the price at which buyers entered or re-entered the market...

I don't use a line graph for myself. I use it only when I'm discussing charts and want to focus on price movement rather than bars or candles. This is particularly useful when trying to perceive the waves. When one is near or at the point of entering a trade, the HLC information in a bar for...

And the sector:

For example,

For the notebook, an example of a base breakout in VEEV, with retracement/test. Granted it's three years old, but this stuff occurs every day.

For anyone who's following along, C=climax, T=test. The objective is not to enter during the climax as one has to way of knowing in real time whether it is THE climax or not. There may be further downside. And often is. But a bell should ring. A light should flash. And the trader should pay...

Some of this may be an artifact of Operant Conditioning and the notion that negative behavior, if ignored, will be self-extinguishing. Under lab conditions, maybe. In the real world, not necessarily (if it were so in this case, the member in question would not still be slinging). But before...