People will take it right here. Thinking, trend consolidation just like before. And then don't have a planned way out, besides waiting through a major pull back and very high risk for reward. And then, when the trade is BE, they hesitate to get out at BE plus a little. Then wait through ANOTHER pullback, and ANOTHER high risk-reward scenario. Point is, What is the entry and why, what are the exits? Trend trades are really chop avoidance trades in this case.
'spot' is right. reversals are a black swan. reversal patterns are flies. i think those traders who are profitable do not know any reversal patterns
see no reversal , I hear no reversal, I speak no reversal reversal patterns i see them all: they are better called non-reversal patterns -
i am finally doing what you and @Laissez Faire guys suggested. swing and beer lunch and nap easiest money in my life | Page 28 | Elite Trader post 272
Here's a heady stuff to mull over. It could just be another useless psychobabble for some or Ram Dassian enlightenment for others. I'll leave that to your imagination. The following quote is from M.S. Jenkins' The Geometry of Stock Market Profits (1996): The initial thrust in the stock market, of stocks coming off the low prices or on a breakdown from the top prices, are what we term "impulse waves." They are a lot like the trajectories out of these cannons, whereby, we can take measurements on these trajectories and forecast where they are going to go. With this as a backdrop, we retum to the theory that the subconscious mind of man is connected with the price level of stocks, on a day to day basis, which has something to do with time cycles that are influencing human beings and their behavior, so we can make the following conclusion: The price level at which a stock trades tells us something about its own internal time cycle. This is the major secret key to the stock market! That is, if a stock goes up to $50 and it tops out, and then goes down, we can say that the $50 price is more than just price, for price also has an intricate connection with the time cycle. Indeed, the time cycle has a mathematical numerological equivalent of 50, just like the price of $50, and we will find turning points in the future of that stock at units of 50 time periods. These units can be 50 minutes, 50 hours, 50 days, 50 weeks, 50 months, 50 years, but all the units of 50 from that high price will be evident in future cyclical behavior. This can be proven conclusively to anyone by looking at any chart, whether it be stocks, commodities or even the prices of used cars (see below). One takes the high price, takes that time unit and measures over in days, week, months. The unit you want to use, should be applicable to the trading horizon. If you are a long term investor, you would use weeks and months. If you are a short term investor, you might want to use days and hours. However we measure it, we will find the turning point in harmonics (fractional mathematical parts) of the major high or low. Now, when that stock at $50 goes down and makes a new low, say $30, and it turns up, we now have the same effect from the lows. The $30 low will spin out time cycles, based on 30, not 50, but every 30 units over, and these will have a tendency to be lows to lows or highs to highs. For instance, the $50 price might spin out a high every 50 time cycles, and the $30 low might spin out lows every 30 time cycles. What we find is that the solution to the stock market enigma is nothing more than keeping track of all the fluctuations of the past.All the day to day highs and lows are spinning out these future cycles, based on those highs and lows of past history. This is very similar to throwing a handful of pebbles in a pond. We know if we throw in one big boulder we get a giant wave, and if we throw in a little pebble, we get little tiny ripples.