ES 04-18-2005 A Day
16:22 @Buffy2: the actual bars for 1, 8 and 11 are to the right of the vertical line Alan
16:22 mbh: no trades on this chart until bar 9...against up line...buy with a stop at line because previously way too embedded in neutral zone - no need to fear being long up line because it was never violated...to that stage
16:25 mbh: bar 10 took support zone...hold longs...
16:25 mbh: bar 11 held zone....BUT..it was bar 11 hod...close all longs there...pocket your money...
16:26 mbh: with midpoint next hurdle you got a midpoint fail but not wise to ss there because you way left of any line protection...
16:28 mbh: if you do ss there...you must protect yourself by using your resistance...i.e mid - IMO....too risky to trade long at number 3 with mid res so close...stay flat
16:31 mbh: below number 4...3 bars right...once line breaks and closes under....get short - if 1/4 falls...stay short..if not...scratch...
16:32 mbh: get to sidelines in this area at 5...too much space either side...I wouldn't trade in there...I can take some time to begin thinking..why aren't the angulars supporting or resisting..
16:34 mbh: the answer is...and always will be....they have two sides...wait....watch..begin stalking...
16:35 mbh: don't hesitate to short that number 6...its been setting up for hours
16:37 mbh: once you re ss....you want that es under that down line asap...if it walks out towards the support zone instead...close out again...bank your money..if it pushed up thru your entry line...stop yourself out...
16:37 mbh: remember....overseas indexes all red....why isn't USA crashing...
16:38 mbh: next trade if long has to be down low in the zone between 7 and 9..or against an up line...all shorting here is not allowed...
16:38 mbh: why? - because I don't short support zones
16:39 peterg1: cuz Europe responding to Fri close
16:40 mbh: who knows...who cares...we not trading Europe with this style charting...just lines...zones...extensions...etc...
16:41 mbh: a long trade is valid at number 9...its zonal correct..its line correct..but..use line for stop too...
6:42 mbh: the end....lol..
6:47 mbh: yw sharp...the key thing imo...hit the sidelines during confusing action...eventually you are guaranteed one trade per day...when it sets up.....take it...
16:48 mbh: once you win a line...lock your stop in there - don't yield 1 inch...
16:50 mbh: one more thing....your ss trade at 6 came off a dwn line right?
16:51 gizmo: yes
16:51 mbh: from that point on...you know its not going to last...only ss from dwn lines last
16:52 mbh: yw buffy
16:52 gizmo: so this was a cheeky scalp then
16:52 mbh: yes...part of what the game is
16:52 gizmo: entry was at 1149, would stop be at red .500 line or at no.6
16:53 mbh: depends on you...for me...at 1/4
16:55 mbh: that thing trades .25s does it? ok..then that's sensible place
16:56 gizmo: can U remind me why you exited trade 1 at bar 11 close pls, apologies for asking so many Q's
16:56 mbh: np...
16:57 mbh: because bar 11 was hod...and notorious fleece bar
16:57 mbh: same as bar 8 lod...
16:58 gizmo: is bar 11 fleece, or hod?
16:58 mbh: fleece or on hod...best used at res...so...it was hod near mid...time to evacuate longs...let some one else test mid...
16:59 gizmo: k, cheers for the detailed explanation
17:00 mbh: yw
17:00 DirkX: That's helpful...is it pyrapoint?
It is a simple man's pyra IMHO - directions for the lines are in Alan's Folder in trading discussions at dacharts.
17:01 er2: buffy, could you repeat about the 2x on point-5?
At point 5 the ribbons are in buy zone as is Jimmer's st stoch and more importantly the macd has paused so should be some up move when the macd histogram crosses zero - where to? Alan's resistance line!
17:02 er2: tnx buffy
17:01 Franko: gizmo: thanks for asking my questions.
17:02 gizmo: hehe Franko
17:02 er2: nice confluence on point-5 buffy!
17:03 gizmo: GN all, thank you all for your assistance once again...
17:05 Wing: I'm gonna dig into Alan's folder after dinner.. no mental capacity right now :)
17:06 mbh: gazarelli on kuddleslow...
17:08 mbh: gn folks...
17:08 RJ: gn Alan - gizmo: gn Alan - prakso: gn Alan thx - punkt_bit: thanks
alan, very interesting stuff as always