Given today's trading, I question whether I am qualified to give valid advice. However, I will give it a shot... and hopefully someone will jump in with additional comment or corrections. Scott appears to recognize choppy areas quite well... perhaps he has trained himself to expect them in certain situations. I don't have that same acuity yet. If you notice from his charts, he engages his trade at a support or resistance area in anticipation of acceleration when the stock crosses it. He also has his stop ready if it doesn't work out. He knows that his winners will exceed his stop losses. He also seems to have patience when awaiting an entry set-up... he doesn't seem to get suckered into the choppy-ness. In serious chop, if he likes the trade short,he seems to take that short at the TOP of the consolidation area rather than the bottom so if it stays in chop, it works in his favor (vice-versa on longs). An example is the third chart down, just below my couple lines of commentary. If a stock breaks out instead of going his way, his stop is engaged and he reverses and rides the break-out. I tried it today on a Potash short and it worked great because I caught it at the top of the chop area and it sunk... eventually breaking support and dropping out of the consolidation area. I covered too early and didn't stick with the trade, but that is separate issue. As far as what his red and green lines mean, I encourage you to check out his site to learn, if you haven't already. Green lines are where sells happen, red are for buys. I hope that is helpful. Thanks for checking in. I appreciate you stopping by...
youre a little confused like i am note the number of seems you use, i used to visit his site and asked for clarification of moves-why he did them, no answer,he mentions the size of candles but little else....i need less of the zen and more of the technique.why have a blog ,show gains, but won't explain procedures.
His method is more art then science and therefore does not transfer well to concrete explanation. He gives much of what you need to look for but leaves it up to you to refine it. The answers are there, I believe. It requires much work to replicate his success. Are there some opportunities for better explanation? Probably. Should I expect him to hand everything to me? No. I do have questions written down that I am trying to answer on my own through study of his site. I may pose them to him if I eventually can't get to the bottom of them. However, I think it is wrong to criticise anyone who is doing something free of charge for the way they deliver it. We should all be grateful for what someone offers regardless of the form in which it is delivered. If something does not suit one's needs, keep searching elsewhere until you find it. In that journey, you will likely find what you are looking for inside yourself. Good luck.
As I often do, I was studying Scott Farnham's Fear & Greed blog and found these examples of how he trades in and around consolidation areas.
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could you explain what you see? what you think is significant?
ReplyDeleteAnon,
ReplyDeleteGiven today's trading, I question whether I am qualified to give valid advice. However, I will give it a shot... and hopefully someone will jump in with additional comment or corrections.
Scott appears to recognize choppy areas quite well... perhaps he has trained himself to expect them in certain situations. I don't have that same acuity yet. If you notice from his charts, he engages his trade at a support or resistance area in anticipation of acceleration when the stock crosses it. He also has his stop ready if it doesn't work out. He knows that his winners will exceed his stop losses. He also seems to have patience when awaiting an entry set-up... he doesn't seem to get suckered into the choppy-ness. In serious chop, if he likes the trade short,he seems to take that short at the TOP of the consolidation area rather than the bottom so if it stays in chop, it works in his favor (vice-versa on longs). An example is the third chart down, just below my couple lines of commentary. If a stock breaks out instead of going his way, his stop is engaged and he reverses and rides the break-out. I tried it today on a Potash short and it worked great because I caught it at the top of the chop area and it sunk... eventually breaking support and dropping out of the consolidation area. I covered too early and didn't stick with the trade, but that is separate issue.
As far as what his red and green lines mean, I encourage you to check out his site to learn, if you haven't already. Green lines are where sells happen, red are for buys.
I hope that is helpful. Thanks for checking in. I appreciate you stopping by...
thanks for the explanation,i speed read it, but will look at it later.
ReplyDeleteyoure a little confused like i am note the number of seems you use, i used to visit his site and asked for clarification of moves-why he did them, no answer,he mentions the size of candles but little else....i need less of the zen and more of the technique.why have a blog ,show gains, but won't explain procedures.
ReplyDeleteAnon,
ReplyDeleteHis method is more art then science and therefore does not transfer well to concrete explanation. He gives much of what you need to look for but leaves it up to you to refine it. The answers are there, I believe. It requires much work to replicate his success. Are there some opportunities for better explanation? Probably. Should I expect him to hand everything to me? No. I do have questions written down that I am trying to answer on my own through study of his site. I may pose them to him if I eventually can't get to the bottom of them. However, I think it is wrong to criticise anyone who is doing something free of charge for the way they deliver it. We should all be grateful for what someone offers regardless of the form in which it is delivered. If something does not suit one's needs, keep searching elsewhere until you find it. In that journey, you will likely find what you are looking for inside yourself. Good luck.