I agree with trading the extremes, but the extremes can vary depending on the time frame. How do you know you are at the low when you take a long? I'm not saying the long is a bad trade because you never know, right.
Yes, you could have gone short and have price reversed, but it would make sense for it to reverse at some level such as a prior days low, high or close. But....the profile is telling us that price is not accepted at the levels of yesterday.
If you noticed the "open drive" down then I think you are seeing things very well. Given the fact that it gaped open lower and you saw the open drive down, from what I understand that could be signs of a trend day down. I think they discuss this in M over M.
I know this is hind sight on my part and I'm certainly not and expert and I struggle myself. My feedback to you is just as much for me as it is for you. I'm not trying to be critical at all.
The following user says Thank You to David_R for this post:
You're very advanced in my eyes based on your CL Analysis Thread. I agree with you that the open drive down (no responsive buying = acceptance of the lower price and continual falling) is a strong sign of a down day. For me, I simply did not know where to place a short IF it's only based on MP. Plus I usually waited for the first and/or second 30-minute brackets to complete so that I have more reference points.
This morning I started practising a Price Action chart = less focus on the MP one. I just went through my Mind Over Market notes. Gaps is one of the Special Situations to identify high probability trades. Dalton did suggest "Trade with the Initiative activity". For this morning would be Short.
I just started to write down more price information this week such as Open and Close of the first 2 30-minute bars. What and where to look are all new to me. Your additional tips certainly help. Now I know where to look (such as a prior day's low, high or close) when a trade reverses. Thank you.
The following user says Thank You to wgreenie for this post:
1. I asked myself if I was scattered "again" from my Trade Plan this morning (supposedly MP and Perry's set-up as primary with GomiVolLadder secondary)!?!
2. Starting tomorrow I will only practise Price Action (PA) plotting EOD or in the afternoon. No sim trades based on PA in the morning when regular sim or live trades will take place, ie back to my Trade Plan.
Update: My Mirus account is now funded and I can do live trades any time LOL.
Sorry for my PA slip ... though I was and still am very excited last night esp after watching Big Mike's CL videos .. haha ..
Hey, there's a BM member aiming at a Scuderia car .. I visited his thread and his chart with only ellipses highlighting trades (no indicators) has drawn my attention. He (You) has inspired me to revisit the HH/HL/LL/LH mistery. Thank you!
With more practice and learning, I am following your footsteps to be a competent PA trader .. smile ..
LOL, cool, I am using diamonds now...hope they are as visible...Als stuff is hard. It takes lots of time to process. You can join his room for free for a couple of days and hear how he does it live. Also big mike has done a good job on the elusive price action thread of explaining HH and HL stuff. Have fun.
The following user says Thank You to trippenlatin for this post: