Hello feibel,
Once again thank for you time in putting these journals. All your efforts are really really appreciated. Wyckoff and VSA principles are very nicely laid out and you make it so easy.
I think i can reasonably draw decent supply/demand, support/resistance, and channels albeit some times they differ from yours as it is a judgement call.
The ones i don't understand is how to draw local levels/local support that you talk about - for instance in today's journal where you took the first two entries (pic attached)
For most, this might be as basic as abc, but for me it I'm lost. if time permits can you talk about them or at least direct me a place where i can get some material (all i can find is trading straight forward support/resistance material).
Appreciate the kind words and feedback, it pleases me the Chronicles can help others.
Wyckoff and VSA may look easy in the Chronicles with ''buy here'', ''sell there'' etc, as I have constructed the Chronicles (the writing style) in most part to be as simplistic as possible, as trading is very taxing on the brain. However, it has taken myself 1000's of hours to be able to read a chart efficiently and even longer to learn the mindset of a trader - 2 completely different skillsets, and i'm still learning if being completely honest. Still to this day I review every trade after hours, once at the weekend and once again at the end of a month. Using a large sample size we can detect positive or negative behaviours in our trading and create a plan to implement the following week, forever evolving in the market place. Now at this point in my trading career, trades literally jump out and its all done via muscle memory, I don't think about the process of trading, its done automatically, this was achieved by creating the correct habits and continual development through practice (which I still do everyday)
There are correct ways to draw support and resistance lines, trend channels etc, however like yourself, I cater for allowances and add little nuances of my own that suit my style of trading.
Back to your question, local support is the low of the first bar that is the first mini pullback after a swing/leg or wave up has been established. It's local because its only relevant to price action from the low of the first pullback, it may only last 5 bars, but still has validity in my opinion. These aren't areas of demand or supply its like a local shelf of support. The majority of traders wouldn't use local levels, perhaps fairly niche, but with the style of Wyckoff and VSA I have adopted we only have market structure for guidance, its the road map to the market and proves to be of extreme value in trending conditions, (helps to jump onboard large moves) or after a wave up and price halts and we can see that price has stopped at the same level (lows) 2 or 3 times, just add a support line, the key factor to remember, the higher the touches the more stable the support, also how does price react? has the market refused to close under a local level for 4 or 5 times, only to reverse back up closing firm, this also adds validity. Rejecting lower prices on a local level of support is extreme strength, (contextually dependent)
Try and study Wyckoffs early works, I think he used the term mini shelf, or perhaps Bob Evans, but nothing is said of value, literally draw them in for a week over all time frames and towards the end you would have drawn 100's and hopefully should become second nature.
Hope this helps,
F
