Skim, what do you think of this?

[Skimbleshanks]

The reason why you need to walk first, is because you need to know which are the good ones, and which are not.

Well done on the double top at the end of play on Friday - it's also a 123short, which you would know on the very opening tick of today's action.

The reason you're looking for triggers all over the place is because you're getting too close to it. Remember what I said about being on the other side of the room? Those are the entries you need to concern yourself with at this stage. Those little ones will kill you, and that is why you have to spend time seeing the big ones - the biggies are the profitable ones.

Don't limit yourself to looking for a specific number of entries - look for the quality ones.

My rule of thumb is that if the market is sideways during the morning, chances are you will get a trend starting over lunch (and hence you are looking for the bottom patterns). If the trend is in the morning, then the lunch will often go sideways. If the previous afternoon was a trend, then the morning is likely to go sideways. Nothing is certain or guaranteed, hence the need to always go with the flow, and what you see.

Just keep plodding with it - you'll get to see the daylight soon.

 

[stoploss please]

Last two charts then off two bed

Here is the 5 minute chart.

You will see two Xs. These are the areas of confusion for me. The next posting is of the 10 minute chart where things look a bit clearer.

 

[stoploss please]

The ten minute chart as promised

Here we go.

 

[Lambchops]

Skim - Do you pyramid your positions or let them have your full line?

 

[stoploss please]

Good morning Skim.

Have you finished my cardigan yet. It will soon be Christmas you know.

Can I just do a quick recap.

1. Look at the bigger picture and work down to the smaller time frames as this will help you find the major direction, pattern and price points.

2. The ten minute chart read properly will stop you trading the small loss making patterns found in the five minute chart.

3. When the five and ten minute charts are in gear, the trigger is much more reliable.

4. Use the five minute chart for entries.

Is that it. It sounds too simple which suits me fine.

Cheers
Andy

 

[Skimbleshanks]

Lambchops:

I don't scale in and out - I like an easy life, so just hitting a pre-set buy and sell button is all I'm capable of. Takes too much effort to have to change the contract number each time.

Stoploss:

Yes.

And kill that volume on your chart before I come round and duff you up with my handbag! :cheesy:

 

[mma]

I find quite often that in practice , set ups tend to be a lot less reliable - v. annoying.

often , the patterns begin to form , then when you place the trade the opposite happens . like you see a head and shoulders , you make your play , then the whole thing turns and becomes a bottom , and you are stopped out .

then it happens again , and your confidence is shaken , next time you opt to miss the h&s pattern . guess what ?? this time it works like a dream.

that's the market for you , cheeky , sneaky and very trying.

 

[stoploss please]

Psychology and money management are probably the two easiest things to understand but the onces that always gonna kill you.

I always thought trading was all about ego and confidence but I coming to realize that it is all about being cautious and humble.

 

[Skimbleshanks]

Very true mma. The pattern formation is just the start, and if you read any textbook it tells you to get in at the neckline, which is just far too late. The neckline is the place you would be waiting to see if a bounce happens.

Getting in at the top of the right shoulder has the smallest risk, and you then ride it down ready to exit at the neckline if the bounce warrants it. If you enter at the neckline, your risk is way back up at the top of the right shoulder.

The market is just one old girl, ducking and diving as she sees fit; follow in her shadow and you'll do quite nicely.

 

[mma]

skim ,

yes , true but in my experience , but have methods of entry have been successful but both also have backfired on me as stated .

it seems the market will do what it does at the most annoying times and if it's going to go against you then it will neckline or shouldertop.

 

[Skimbleshanks]

Just remember that the market is a woman, and as we all know they change their minds all the time. So be it. Flexibility is the name of the game, which is why it's always so dangerous to have one opinion set in your mind - empty mind, going with the market's flow. Much easier said than done of course.

 

[Skimbleshanks]

Just noticed that the overnight is now trading at 1054, yet we
closed last night at 1048. So that looks good for a gap up at the
open.

In this situation the gap up is above the high of yesterday, and
the day before - a classic Oops set-up as popularised by Larry
Williams, I believe.

So if it is, look for a gap up, everyone buying at the open will pile
in, she'll then turn and drop, trapping them. They'll come home
from work, look at the markets and realise they've been stuffed.
Some call it a gap 'n' trap, for obvious reasons.

But just trade what you see.

 

[stoploss please]

Cool Skimmy

 

[FTSE Beater]

Skim speaks - The market listens!

 

[stoploss please]

Skim

From yesterdays low to todays high and to the current price. Is that a big bullish 123 pattern.

If you are busy, you can tell me later.

Cheers
Andy

 

[Skimbleshanks]

Hope you all enjoyed the ride - I got off at 1044.75, so am now going to potter around for the rest of the day as this bunny's made enough dandelion leaves to keep her going for the rest of the week.

The Beige Book is announced later (14:00 ET / 19:00 UK), so often the market has a nice trend in the morning so they can all make their money and knock off early. Then the market goes sideways until later.

 

[ChartMan]

But if you hang in there Skim, you might make enough for next week too, then you can take me on Holiday. :cheesy:

 

[Skimbleshanks]

You don't need a holiday when you have a day of rest on Sunday.

Anyway, you embarrassed me last time with your Kiss Me Kwik hat and making me carry all those goldfish in little plastic bags. Took two weeks for my shoes to dry out! :cheesy:

 

[stoploss please]

Skim

What bar is the text book entry on your short. A bit puzzled.

Cheers
Andy

 

[rossored]

May I ask, is my interpretation of this move on YM correct? Or was I just lucky??