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A struggle with Lessons 1-5

Posted: Thu Oct 23, 2008 9:10 am
by Trader Question
I am have been experiencing problems in coordinating the time frames in my trading.(lessons 1-5) I have placed the various lines and dots on my historical charts and found that on some bars,there are instances where the highs or lows do not terminate near a line or dot, sometimes the distance that they are away is significant on my HTP (e.g Qtly). The problem I have found in practice is that while I can see definite surport or resitance patterns on the focus or LTP as yes patterns the the lack of a Line or dot on the HTP that is locating at the focus and LTP lines and dots,causes me doubt,is the Focus or LTP finding surport or resistance or is going to move further until it finds something in the HTP ? its not until after prices move away that things look clear which by then increases the risk to trade.

One area that has given me trouble in this respect is the return to dot. With Stock market trending strongly,I have found that the return to live dot that occurs in a trend is only clear after that bar has fully formed, in the initial stages when I would like to enter the live dot is not at hand therefore I am in doubt as to where is HTP surport likely to exist ? Having trends on other time periods also brings the same problem , I do find that things are ok if lines are locating for surport in the area of trend surport.

In conclusion I am understanding that for surport or resistance to be valid there must be a definite line or dot in the HTP that indicates potential surport or resistance and that focus and LTP lines and dots must locate and or provide yes patterns near to the HTP level ,( question how near is near? ) I unfortunatley dont have trade station charts,I can send excel sheets with the price data , and I could highlight the bars that have given me trouble.

GB

Re: A struggle with Lessons 1-5

Posted: Thu Oct 23, 2008 9:12 am
by pldot
Note that in future lessons (if I recall you have only 1-5 so far?) we deal with the "nearby support and resistance" and the "furtherout" support and resistance on the various time periods (less 16-20) , and much more extensive discussion of yes and no patterns (less 7-8) , and envelopes and 1-1 zones (Less 6-7) , and many other tools that will help you in your efforts to see where support and resistance is locating and what things look like on the LTP as the market starts to react to the HTP energy. But you are focusing in on the correct ares to study, which is the time period coordination and how that plays out on the LTP and FTP.

Not sure exactly what you mean about the live dot not being there.. Is always there, and moves somewhat during the bar's development... Maybe show me on your chart. (assume that you port the data into excel charts; would be very difficult to deal with the raw numbers as support areas... Much of this is based on the visual pattern).

It is not simply a matter of HTP support/resistance existing but if it is anticipated to be strong or weak. Much more on this in later lessons but note that in making that judgment it is important to know what the HTP is trying to accomplish... Is it in it's own up trend, for example, and thus support might be anticipated to be strong, and thus and FTP move down would be also anticipated to be strong. Etc.

It is not always a matter of the exact/precise point or number since the market can overshoot, fall short, etc. But the energy levels of the 5/9s etc will manifest their influence, even if not at the precise tick.

Note that TS 2000i can use external data and so if you are located in England might use that and thus be able to visualize some...

Fielder's choice, of course.