boldtrader » Wed May 07, 2014 1:46 pm wrote:dclayw » Tue May 06, 2014 9:36 pm wrote:
Good trade, looks like it has reached your target now. At the time you went long here on GN the weekly Sto (red line) was down, so you were trading against the weekly Sto at that point? I know you have several criteria for entry, some of which is proprietary (obi waan etc) but I'm not quite understanding your entry at 1.9370. Why did you enter right at that point? I see the old resistance back on 8,9,14 April, but it was against the weekly Sto.
Thank you for your question. Please consider the following.. (and I hope this will answer your question,
if not, let me know).
I will begin this with .. I do not expect anyone to believe or accept or understand what I am about to write.. but.. many years of trading and experience .. well.. I think you will get the picture.. My trading record, my thousands of alerts, my many many hundreds of postings (both here and to my clients) speak for it's own record.
HERE IS WHAT I WAS TAUGHT AND HOW I LOOK AT THE MARKETS: Markets move based on stops.. buy stops, sell stops, etc..( I could write a whole book on this subject alone) After a majority of stops are cleared, THEN the true market volume traders move in.
Look at where my targets were located.. they were small, obscure price points.. ie: resistance levels which were broken but not retested
(uhmm. this is private info I am sharing with you).
Within a larger time period, Daily, there was a key Trendline.. As I scaled down into time.. H4, H1.. there were 2 price points where price had not traded back to these two specific levels (based on criteria). This left these two price points open as targets. HOWEVER.. there is a key to this setup.. and I have posted this before in previous postings.. These targets are not activated until a specific event occurs.
What you do not see is the corresponding levels of my entries.. If you examine where the price points turned (/near my entries).. they will correspond to previous MST levels that were left open. So somewhere back in history (MILLION DOLLAR TIP), were MST levels open.. were price needed to trade UP to .. and then expected to reverse.. Thus my confidence and comments about trading from MST to MST.
Notice the series of trades I just posted..
In advance.. I stated exactly where the markets would move to.. and they did so... 100% accurate.
I have yet to see these MST levels fail. Now call me crazy, strange.. a bit eccentric.. but it is what I was taught and learned while working behind the desk.. Realistically, the only tool that is needed is a TL and the knowledge of these stop levels. The great tools Bob and the team of amazing programmers have created are fantastic to give visual alerts to trend and counter trend. The use of CSS, is utilized as an advance trade condition alert..and is a fantastic part of my arsenal of trading tools. CSS is an amazing utility to monitor for potential conditions to occur. The prop tool I created alerts me to a change of conditions in advance of the move.. I use essentially these tools to make the decision.. but, at least for me.. my style.. it begins with identifying the MST levels. They are my targets. They can occur on all time periods.. but for myself, I primarily look for H1 and H4 setups for targets.
I use Sto to the inverse (when it has established itself into the zone) .. If there is an MST up high.. and Sto7 is down low ( I refer to this as the lower zone - LZ), then it is a condition for me to begin to look for a reversal of price. Since I cannot sell when Sto7 is in the LZ, I can only look for a buy.. and if there is an MST where price is hitting in the LZ.. and there is an MST up high.. then I look for a buy long position. It is inverse trade logic.
Yes, I was trading against weekly.. remember.. markets vibrate up and down.. even within a weekly price can move several hundred pips.
Markets most often reverse off of these key levels. I was short GN.. and closed.. and simultaneously traded long at the same price I closed.. The MST level was also at a Level 1 Gann octave.. this gave me confidence that price would bounce
AT that level per GANN Octave rules.. I was also prepared for a move down to the next octave level lower where I would have added to my position. I prefer to trade small and build/accumulate a position toward an MST target.
Understand this.. I have 100% confidence in these MST levels being hit.. Some take longer than others..
but they get hit.. period.. end of statement.. Again.. call me weird, strange.. whacky.. even crazy.. but this works. It is what I was taught and have learned after watching 1000's of hours of chart time. How else can I make a trade call and tell you where the market will go..
IN ADVANCE? and alert publicly to that move at least 1 bar (period) in advance!.
It wasn't always like this.. I would identify a target.. only for the market to move against me.. by some crazy amount of pips.... stopping me out .. and then really make me question my humanity and ability to trade and deal with the markets as if I am lower than a worm crawling across a 200 degree pavement.. it would really piss me off.. knowing, as smart as I (think I) am, with years training, knowledge, working with clients, managing accounts, advising large funds, working on a live trade desk with a top 5 futures commodity firm.. and I get worked over by the markets..
and THEN.. the market moves into the direction I originally planned.. and to make matters worse.. my target gets hit without me. Really ? Are you kidding me? I just went without a week of sleep to monitor the position against adverse moves.. and you stop me out.. and then you go to my original target? GIVE ME A BREAK.. I QUIT.. Ever Feel this way? I think just about everyone here who reads this post will relate to my thoughts and feelings..
I began to notice something.. how the markets moved.. and more specifically where they moved to .. then I examined why.. The WHY is what needed to be answered.. after several months.. It knocked me upside the head.. and bit me like a rattle snake in that 200 degree desert.. The markets were reversing off of the stop levels on break points.. (shhhh.. dont tell anyone.. its a secret)..
You comment.. "... but I'm not quite understanding your entry at 1.9370. Why did you enter right at that point? I see the old resistance back on 8,9,14 April, but it was against the weekly Sto."
Stochastics only form based on what price has done.. it is not a leading indicator.. it is a great indicator.. don't get me wrong.. it reacts very fast.. and is great for trading.. I use it as a great confirmation and work the signals very nicely and make a lot of pips with it.. but .. It can not tell you what the market is about to do.. it can not read the future.. it can not alert you to future moves.. I entered specifically at the MST level target.. with the knowledge, training and expertise and confidence that 1) the market would reverse at or near that level and 2) there was a MST level up higher which needed to be hit.. that was formed on the drop of price in order to clear out the two MST targets which were left open. So understand.. that 1) the price levels were identified IN ADVANCE.. and 2) As price is moving.. and moves as expected, the stochastics react to how price is moving and confirm the expected price action.
I subscribe to the wave in a wave principle (GANN).. while the weekly wave is down.. there are smaller, faster waves occurring.. much like radio waves vibrating at faster and various frequencies all within the same larger wave. The system is not perfect.. but it does work.. This does require strong trade management principles and the adherence of the trade management rules you establish. You MUST trust the system.. and the only way to do that is to learn it by
Following it, Experience it, Then You will Believe it.. then the system will prove itself to you. Then you will trust and change.
There is an unquestionable, undeniable, irrefutable evidence of price action reversing at MST levels on ALL time periods and that creates an incredible opportunity. It only requires the training and knowledge necessary to identify these levels and all the various nuances involved.
As I stated in the beginning, I hope you are able to understand why I traded at the specific levels and how I expected price to react at these certain levels, in advance, and make some very good trades. I like planning my trades ahead and using MST levels allows me that opportunity.
By the way, Billiards and Chess are two of my favorite past times, as well as Scuba Diving (I am a Certified Master Diver, Rescue Diver, with Mixed Gas Certification and Wreck Diver). I add this because of the calculating nature of these activities require. Kinda lets you know a bit more about me.. and how I think.. crazy, I know..
But.. hope this helps..You know how to reach me if any questions..and as always.. if I can be of assistance, to anyone.. please feel free to reach out to me.
Cheers..
