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Here is what i wanted to ask you? can you show me an live exmaple of how to put the time frames together or atleast explain the concept by taking the current chart of ES?
Ok, let's do this. I'm going to shotgun blast the material out there and try to explain as I go along. Please ask ANY and ALL questions that come to you.
First things first, the market is logical and is always set up to do what it is about to do. It has to be technically.
How does the market move? Accum/distr, momentum progression, legs, levels, 1st and 2nd touches.
Chart 1: The current @ES chart
Chart 2: The previous leg we are retracing NOW
Chart 2 explanation:
Always identify the CURRENT leg that we are retracing. The blue line indicates the leg we are retracing back up. No guessing involved, nothing, just identify the leg we are retracing.
Chart 3: Identify levels from previous LEG (the one we are retracing)
Chart 3 explanation:
Identify some key levels within the leg we are retracing, as those levels will be important again on the current leg. Notice how on the current leg, we are popping and dropping off of the levels from the previous leg?
Chart 4: THE CURRENT LEG
Chart 4 explanation:
The current leg, the leg we are on right now.
Chart 5: Why did the leg stop and a new one start there? Why did price reverse?
Chart 5 explanation:
Why did price reverse there and create a new leg?
Answer- always look left, there WILL be a key level from a higher timeframe.
Chart 6: Oh look, a leg start from the higher timeframe
Chart 7 explanation:
Sideways on building bearish momentum? Ha and you thought the market wasn't always set up to do what it will do next. Where did we stop on the recent sell off? A leg start/level.
Do levels, 1st touches 2nd touches, accum/distr enough and you'll realize just how methodical the market is and that news is just a waste of time.
Spending time and energy figuring out WHY (news, etc) the market did something is a gigantic waste of time, it literally doesn't matter because it's already baked into the chart.
TTS awesome explanation. I always get confused in that what constitutes a first touch. I always think a level is a first touch but it always blow past that.If u can elaborate on that that will be cool. I'll try to bring some knowldge from myside too
A first touch is simply the first time a level has been tested.
The gereral rule is that first touches fail, second touches on supporting momentum go through.
Example: Key level (leg start for instance) at 50. The market fell to 30. Now we are retracing, or in other words, going back up the leg (50 down to 30 leg). As price action approaches 50 for the first time from below, price will first touch fail there nearly every single time on all timeframes.
I believe I'm approaching each trading day from the wrong perspective.
I've been wanting to "win" each day and no matter what end with more money than I had.
This has led to stopping trading after being up basically any amount on the day.
What I should do is apply my edge while the opportunity presents itself. I am going to work on trading more of the session and applying my edge and using each session as the unlimited opportunity for growth that each session truly is.
I forget the exact amount, but one morning Lak from TradeItDontDateIt was up like 200k and I asked him if he was going to keep trading the rest of the day, wasn't he worried about losing some? He replied "I ain't losing shit" and made it the title of one of his videos lol. He went on to explain that being up on the day is great, use those profits to really get in there and push your edge and take full advantage of the opportunity.
Looking back on that day now, I can see that my mindset has been rooted in fear of loss and not being right. I will work from here on out at truly applying my edge in the markets and seeing what opportunities I can create.
No trading tomorrow, but Monday I look forward to getting down to business.
