Every timeframe can offer so many "zones", you wonder why we even draw lines at all.
But here is a quote that has always stuck with me; "Every wave is a manifestation of a previous wave".
I try to look at as low as 30 minutes and as high as weekly to get a picture of where price is compared to all of those "waves", but I keep the most near term in closer view for my trading style. My preferred middle ground is 120 minute, but that zone was from a 30-60.
I was looking specifically for an agreement in value with Hedvig's 1337-41 so I could justify it in my mind. That is why I did not go beyond 1332.50 (roughly 5-6 point spread), I am only looking at the closest major pivot above. But there are zones overhead to infinity.
Keep in mind, until that pivot high breaks, we are below it.
Last edited by GaryD; June 14th, 2012 at 11:37 PM.
If I had to condense it to only 3, I would choose the 120 minute, the 1 minute, and the 6-range. That is all that is on my "laptop" workspace. I am looking for 120 minute zones, then following the 1 minute and 6-range advice.
The DCs and MAs you may notice are only on the 6-range, and even those are sometimes faded. They are there only to put the shape into a framework that can be recognized. Obviously, a long is far better above and a short below, but not everytime... Sometimes the primary DC (yellow) is the sweet spot, but can also cause me to miss the "best" trades. When I can't get the pullback is usually when the move is outstanding.
I expect a "zone" on a 120 to hold, everytime. If I drew it and have not removed it, that is my rule. Plan for it to hold. That does not mean enter a trade, most often it means do not enter a trade. And so I might miss some trades, but I will not buy into resistance or sell into support, who cares if I am wrong about the location. And, if price makes it out of an area, I believe it has nothing to stop it until the next "zone" Does not work all the time, obviously, but those are my rules, part of my trading plan.
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None of us will ever be able to know the future, that is not the point of trading. It is to "guess" the future, and allow yourself to be right. That could be swing trading for days, weeks, months, or intraday trading for wave tops or other targets.
I really pissed myself off the other day, if you look at the chart when I first got in before the EIA, it shows where I "guessed" it was going, but I was still afraid enough to drop that trade before the EIA. In hindsight, it went to my target. And so I was trading poorly at that moment, not allowing myself to be right.
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