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Re: kiy post# 2502

Tuesday, 06/04/2013 3:21:09 AM

Tuesday, June 04, 2013 3:21:09 AM

Post# of 19861
wow...impressive...good work.

Just my two cents on how to organize ones thought process as a starting point. Spotting Market structure-

One of the ways that really helped me organize my thought process during my "price and price only study is to ask ...a simple "FIRST question": you speak to the chart, you say...tell me before anything else, tell me first and foremost:

Are we up? , down?, or sideways?.=market structure and order flow.

That is really the first question that I ask myself and I have trained my eyes to look for that FIRST. How to do you do that? very easy actually..look at the chart from left to right (chart needs to be populated properly (3-4 months view at least on daily say..) you get the idea. Is it sloping up, down or moving sideways ?...

from left to right...is it sloping from left to right downwards or upwards...higher highs and lower lows ? or the opposite...or you cannot tell?..=sideways

Then draw a line connecting the peaks (including the wicks)...and draw another line (Must be Parallel to the first line) parallel to the top line and passing through the lowest low.....=you have got yourself a channel...

then draw a median line (in between) parallel to both lines...you have got yourself a nice channel as a starting point without even starting to put anything else..

First question...very important first question...you go nowhere without it..

Second question: Did we break structure? i.e. violated higher highs and higher lows....and where? at which point? at which line?

third question: If we did not break structure?...where are we "MOST PROBABLY" or most "Likely" break structure?

I will add my two cents on chart or price structure and patterns next...market structure is the most important thing to get out of the way ..

All the best

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