cunparis + jeff,
just as an idea ....
maybe better talk in ticks instead of $$ when talking about the targets/results of trades.
so noone have to think or translate what it means / wich intrument / wich tick-value ... if you write ie +46.85 /-53.15
Don't waste your time reading trading books especially the ones involving technical indicators. I know that sounds funny coming from the guy who has coded over a thousand indicators. Not all indicators are created equal. You do not need indicators to trade. Trading is simple.
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Right.... but we knew the probability of a range was high because yesterday qualified as a Crabel WS (widespread) day. (Daily Pivots website) I'm wishing I would have taken the 7:18 long....it was a perfect set up....but I just didn't like how slow things are moving and I like to go into the weekend on an up note.
Sorry about the delay. Been kinda busy and a bit under the weather. Probably not even trading today, watching the price action but the day before a holiday weekend is usually sluggish. To answer your questions:
1. You are correct, though I don't draw the red hash line until the pullback begins as I want to know where that swing high/low point of reference is. Once it's breached by a couple ticks I'm in the trade so I don't redraw my red hash line until another setup forms.
2. The red hash line on the OBV is simply to give me a point of reference to see if volume is confirming the breakout. So I'll draw it at a swing high/low point where the OBV may have moved to and retraced a bit. In essence I want to see OBV make a higher high/lower low to confirm that volume is behind the price breakout.
Bear in mind this is still a system in the works. I plan on adding too, subtracting from and refining these rules but ultimately, in my opinion, you have to be able to "see" the price action to intrepret it. As an example look at 6B today at 11 est. It had made a nice move up and had consolidated with resistance at 50. It broke above 50 which would have been a buy signal but immediately retraced. However, leading up to that break over 50 the price action just seemed real lazy and the 6B had already made a pretty dramatic move up within a larger move down.