Trader Chart Notes-Issues

老TK

Here is a list of some things that I never see mentioned that are core to method: 

• Base setup that comments are being evaluated against

• Market condition and if-where you are trading related to consolidation

• Key price specifics and how they are used – I see a lot of stuff marked but no indication of their significance

• Reject-failure combinations – so critical to the trading decision

• Slow chart mode and/or condition – I see fast chart only

This chart below is where I first got the sense-made my list of the things that are core to the trading method BUT that I don't see being used for the trading decisions. 

This tends to be more of a continuum of right side fast chart trade problems that are essentially read 'bar to bar to bar' -vs- a method definition for base setups being evaluated-traded according to the setup definition AND then differentiated-filtered for market conditions.  By doing this a trader 'removes' their ability to chart-trade read for method AND related base setups.

we are trying to chart read for 'maximum' clarity.  we do so by using slower charts to remove 'noise' in consolidation - we do so by establishing the most relevant price lines that we can 'place-use' for trading AND remove them when they are of no use in the case of right side focus line - we can't keep adding 'stuff' to a chart AND think we are going to get more visual clarity.  AND actually this would be quite the contrary - where over time we wouldn't know what to look at any more.

we are trying to chart read of method AND method strengths-weaknesses - the basis that we have for making method base setup decisions then differentiating these for method relevant reasons.  we know that our best trades come from continuation moves WITH direction - we know that our biggest problems come in consolidation AND with this we can make our related trade setup evaluation-trading decisions. 

yellow markings on the chart:  we are in consolidation AND the initial setup that would synch with direction AND the 120t would be the yellow circle - is this a base setup - IF no where is the first continuation setup? 

yellow dot1:  i can sell the yellow dot1 as a 'center' shift-reject as a triple range break of the 2 yellow squares AND IF this trade is done there is no exit on the first break of the green line while in consolidation AND without a buy setup - continue to still trail with a maximum break of the line which would be an exit - we know we can put an exit right on the line. 

yellow dot2:  IF i have never traded yellow dot2 is a good setup using the same lines as a green line reject - selling the same line as yellow dot2 BUT this time into-through the triple bottom of the 2 hits of the bottom green line.  now i don't know anything about these lines are whether they 'should' be on the chart BUT they are AND this would be a reject-failure setup of these lines that also is a base consolidation setup IF read as a 'pivot shift-reject - triple range break'.

my point is that i am reading a chart based on trade setups AND how they 'relate' to market conditions and direction - trying to make decisions based on movement after the yellow circle while in consolidation AND before i have a buy setup decision to make.

 

 

i know that the purple notes on the chart were written after trading BUT i don't know about the purple-green lines?  i see so many lines i don't know where they came from OR why they are there - BUT i can see that the lines aren't being used by comments at the lines. 

for instance look at purple circle2 AND the notes:  this is obviously the entry but not much of an entry.  now look at the setup that exists here on the line drawing below the chart-the line drawing to the right of the chart at the purple dot.  this is one of my favorite price continuation setups - where a shift line rejects which in this case was support reject twice at the 2 yellow squares AND then you get to trade a focus line break2 of this reject into-through a diagonal and the prior breaks of the line.

 

looks very choppy:  fast chart right side bar chop -vs- price line failure break - the yellow dot is a good setup AND actually one that i did as an addon to the red dot sell that was held after the double bottom with a 2x partial because i didn't have a setup to buy inside of consolidation so i first held for irisk.

the addon was tried - because it is a failure break setup of the range AND the key to breakout continuation.  you have a right side triple break of an across the chart triple bottom - the resulting price action to this setup is no suprise.

purple line-yellow circle:  IF this purple line is chart relevant as support - than the yellow circle is the break setup AND the yellow dot2 is the reject-failure setup.  IF the case were such that yellow dot1 was my initial sell THEN i would likely have tried this as an addon to that sell - this is the kind of price action we want to see setting up the failure of a key price.

since price has dropped thru here i'm not stuck taking some kind of continuation:  is this a typo - did you mean to say that you are stuck OR are you using the word continuation to mean first continuation?  regardless - do view the purple line-yellow circle-yellow dot combination as discussed AND be sure that you don't use the word continuation 'generically' with respect to trade setups. 

there are first continuation setups AND there are addon setups - these are setup types that are 'after' the initial setup-trigger AND since they are 'later' than the price we would 'like' to be in the trade at - additional continuation is necessary to still get a partial.  in light of this we read a chart for further continuation - for instance is there a reject-failure of a key price AND/OR a breakout setup like a trade into an inverted diagonal OR through a diagonal breakout potential - these are now key components to the trade setup AND allow us to define-differentiate for 'continuation setup types'.

 

price lines:  i do not understand all of the lines on this chart - this is too many lines and would confuse me visually while trading.  i don't tend to mark pmd high-low while trading because i can see them easily - that also can reduce so 'noise' from the chart for me.

yellow circle - yellow dot:  the yellow dot is a base pmd swing reverse AND IF the mex lags after the pmd and trying to hold support and resume-fail at support and reverse - the 120t pmd flow is down.

see the chart below AND the further discussion of this setup-trade AND price lines usage.

 

price lines:  i have redrawn lines on this chart - the yellow-blue lines AND with these lines read this chart and possible setups differently.

yellow circle - yellow dot:  not much of an entry here - agree that it's an initial reverse AND right into the floor number.  no entry setup into the floor number - don't agree - hasn't the floor number already broken?  this is what has been referred to as a pause-break continuation AND a trade that we can do by knowing why there is a pause - which would be at the line that failed after the 2 blue square double top reverse.  i do understand that this is a difficult setup type to react to - again they can only be done so IF the related price is used.  i would try this trade for my initial entry because i like the potential of trading into-through that double top as a triple top break.

way past the trigger:  this statement will always concern me - it infers that addon trading is not viable AND it is - very much so.  i am also concerned because although you have the line on the chart - you aren't using the line.  this was a double top now shifting to support - it is the most important price action at this time because it is determining whether the move can continue.  you get a shift-reject still with mex flow as it hasn't crossed yet AND with the 120t mex 'mid-flow'.  my trade decision considerations are now specifically those of left side price.

don't like the area here:  i don't this chart is price marked for relevance - you aren't reacting to the pmd AND how it would fail for continuation.  look at the yellow lines-yellow dots - i could do either of these as pmd failure addons AND they would be called base addon setups.  they 'shouldn't be the initial trade entry to the swing though.

blue line-blue dot:  i put this on the chart to show the relevance of the yellow line which is the initial pmd failure break AND how price comes back to this line to test it.  with the tweezer test of the line AND break2 of the blue focus line AFTER a pmd swing high - i would sell the blue dot as a pmd swing failure into-through the yellow line failure setup.

 

no trade here at floor pivot:  when we are trading near a significant line - we are considering where the line we have to trade is setup to break and/or is it setup to fail.  a hit of the line before the break is a break setup AND 2 hits of the line where you will be trading a triple break of that line is a failure setup.  in this case you have a failure setup WITH directional strength AND with mex flow down on the retrace to reject your purple focus line - i am fine with the yellow dot sell as described.

yellow dot2:  if flat this would be the first continuation trade - there wasn't enough continuation through the low to get a profitable trade BUT this is a base setup.

 

yellow dot1 initial reverse through a line triple break BUT would be against the 120t AND i would agree with the hold of a left side buy on a fast chart initial. 

this is where this needs to be entered at:  i can't agree - the initial reverse is actually yellow dot1 WITH that area synching with the 120t AND probably not reversing back like the fast chart did in consolidation.  BUT the point would be that IF i can't sell yellow dot1 - i really don't see anything here while in consolidation above the left purple line - i have no consolidation setup.

yellow dot2:   this is a very good setup - it's a double break setup of the res:sup line WITH mex flow down on the lower high.

 

not much of an entry:  yellow dot1 is right side base as a focus line entry WITH mex flow down on the lower high into the trade - actually a 2nd lower high IF you view this area against the left side-swing drift down.  this is also an entry location into-through the diagonal of the 2 blue squares as a break setup of the floor number.

yellow dot2:  IF yellow dot1 isn't traded AND this is a 'better' setup than the yellow circle buy into the left side drift-consolidation - yellow dot2 is a base first consideration trade - as a floor pivot reject into-through the 2 blue square triple bottom break AND still with mex flow from the initial trade at yellow dot1.

trade that was tried:  this is not a floor number reject - that would be yellow dot2.  consider the price action here - turning the purple line-left blue dot into a consolidation around that as a centerline - i would refer to this as a shift-reject of that line BUT a fill area as a double bottom breakout of the swing low of the yellow dots.  i would probably do this IF flat BUT i see yellow dot2 as the first continuation setup.

Bencat

Poo