A Student's Questions.................

[Trader Question]

I have a question and I hope you will be able to give me some general guidance.
I have studied DG lessons 1-I have got interested in Market Profile through Mr.Dalton's book ( MIND OVER MARKETS),and I am also currently taking Mr.D.L. Jones course on trading.

Question is: How to combine those two approaches together, and with other techniques I am using (primarelly Mr.Miner's work), and turn tham into sound strategies that could be traded over basket of commodities with applied money management, and experimenting with DG indicators on my TS.I still have problem applying those techniques in actual trading.

M.B.

[pldot]

+++ Well the first question is,what is the nature of the difficulties that you are having... we should strighten those out and see if we can assist you in applying the trade plans of Lesson 16-20, which shouldbe profitable for you... Please give me some detail about the difficulty you are experiencing.

++++I would caution against trying to apply many differnt approaches. Pick one and work with it.  Constantly shifting approaches in mid-stream can be counter productive.

[Trader Question]

Also, I am concerned that those techniques are very sofisticated and it my take me lots of money (trading losses) before I learn to apply them properly on my own.

M.B.

[pldot]

++I find market profile interesting but applicable most only when the market is in a recognizable congestion and the "extremes" can be easily recognized. I greatly prefer Drummond Geometry for trading, as it is a richer methodology.

[Trader Question]

Thanks for your help. Will take your advice and stick with Drummond Geometry until I get comfortable with it , before I decide to add anything else to my trading strategies. I would feel uncomfortable asking you for advice every time I have questions about some trade, but I will give you example of problems I am encountering ( mostly problems with transfering market analysis into trading plan).
On recent sugar example(SB):
1) Monthly chart-trend run down until recently.Possible buy at 5/3 up at monthly P&L dot, but conserned that it could have been only P&L dot refresh.Currently facing resistance at envelope top , with possible cycle down.
2) Weekly-Envelope top acting as support,but resistance holding(on volatility and weekly close).Last weeks high holding(inside bar on weekly).Possible return to P&L dot.
3)Daily-Congestion-recent two closes under P&L dot but friday reversed.2 daily closes under weekly envelope top.
At least for me, as beginer in the Drummond Geometry , at this point I am completly lost.I try to keep trading rules as simple as possible with no ambiguity(entry,stop,exit), but this analysis could be traded on many different ways, srarting with initial decision on buying vs. selling P&L dot on monthly.
With knowing that there is no quick fix for this problem

M.B.

[pldot]

First, clarify what your focus time period is. What are you trying to accomplish on which time period. Pick one time period to function as your focus and look to take the greater part of that bar, using supp/reisi on that bar, then the HTP, and monitor onthe LTP.. SOunds like some confusion of focus might be a good place to start. Do not have sugar data and so a little hard for me to comment on the chart itself...


1) pick focus TP
2) determine nearbys on that TP and on HTP.
3) determine likely strength of weakness of focus tp su/rist
Let me know if this moves you forward...

[Trader Question]

Appreciate your time and help.You answer did help somewhat.
There is a still problem with details.E.g. using orders-if selling resistance or buying support -limit vs. market if touched vs. focusing on next lower period conformation. Then what to do if not filled, or market is testing support or resistance late in focus time period.
In terms of sugar example, my decision on what to do will depend more on judgement if market is in impulsive or corrective phase.No metter what is my time focus , if I thought that suger had corrective a-b-c rally I would be short till retest of previous low or bellow.

M.B.

[pldot]

Styles differ re limit or market. After much screwing around I almoty always use market orders; first you figure out where the market is going and then enter with market order when you see what is hppening. No muss, no fuss. Avoid perfectionism.

What is this stuff about corrective/impuslive phase and a-b-c- rally? Stick tothe P&L analysis of SUpport and reistance within the contexts of HTP and focus time period. If you mix methodologies like that you will buy yourself trouble, as you will always have a reasons to do or not to do anything. Discipline and focus are necessary here. Stick to your knitting.