Lesson 13

[Trader Question]

Have you talked with Charlie about this issue? I see from later lessons that strength or weekness of these areas is as important as where they are placed but that does not obviate the need to place them consistantly and objectivly to start with.

N.A.

[pldot]

Here's your answer...


Actually I think the Lessons are specific enough regarding the constructs of the furtherouts; if you do your own programming you'll find logical areas in which to place them (based on the Lessons) , and in those few instances where the furtherouts are enormously extended, then you'll make common-sense adjustments in he graphics to accommodate the user.

When you move outside the energy fields that are nearby to the envelope, as price moves outside same, nearby 52 or whatever is breaking, thus from that moment, nearby is breaking and price going to exhaust. In essence we view any move outside the envelope basically as a move to exhaust, since price will move back inside the envelope back to the pldot, as pldot loses it push in termination, and that termination can be in the nearby field or outside same if it breaks. The further away one gets from the pldot the pldot is losing its push. Objectively, you are inside the envelope or near to the pldot or you are not, or you are outside the envelope moving to exhaust, to return from the exhaust, since that is what it is, an exhaust, to return to refresh the pldot. One could throw the envelope away and not use it, and still note whether a field near to the pldot breaks or not, and if so, objectively know that pldot will start to lose its push. This will be occurring on a time period as a result of the same happening on the higher time period but it will be ahead of the higher time period, since if a weekly exhaust is occurring, the daily has 5 bars as it moves ahead of the return to weekly pldot refresh. Does any of this make sense?

[Trader Question]

I need to give this some further thought. I dont think its an enormous issue however. I do believe it has bearing in rare cases (like the exercise that I first quoted). It could effect stops and as Charlie mentions analysis of exausts. If you anticipate an exaust in nearby resistance nice to have that in the right place! Nice to not have it too fat as well.

This is all fascinating stuff and once you get into a P&L way of thinking there are many interesting avenues for research, this would make a good one. For example Further out bands constructed using 2nd floor pivots seem to have a lot of merit. The rare times energy terminates there a refresh is iminent. They don't fly off into far out and cosmic levels like the 5-9's either. Adding apropriate arbitary levels based on bands may be useful. The other obvious candidate for exploration is the 1-1 zones.

My big problem is not to alow myself to be sidetracked by some of these ideas. Just need to keep my head down learn the lessons well. Then actualy trade this stuff, next week Im hoping. BTW you where quite correct when you said on the telephone that you would not be surprised to see me re-evaluate focus time period. P&L seems to draw one to somewhat longer time frames. I do think that peoples minds are more tuned to seeing flow in a particular time frame however. Anyway Ive rambled a bit I'm afraid.

[pldot]

Your thinking indicates tells me that you're very much on the right track. There are indeed many avenues for further research and we'll be the first to cheer you on.