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Thread: Price reversal points

  1. #221
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    Hi Mike,

    Having looked at my post again it sounds a bit preachy. Sorry, that was not my intention.
    Parsons ideology has been the cornerstone of my trading for about five years and if I could
    sum it up in one sentence it would be this: Channel Surfing tells you what price is doing, BM & RM
    tells you what price may do.

    For example: lets say you have a confluence of 7 of your favourite indicators telling you the bottom is at point A.
    You call me and say "wow look at this we need to get long". Lets assume its the Feeder Cattle contract and I think wow Mikes right, everybody will be looking at that level. So I call a Few friends we pool our resources and sell 500 contracts just above your lifetime bottom.What do think happens to your confluence? The market rockets through it. Price is not driven by indicators but is always driven by supply and demand. Price drives the indicator.

    That is what Channel Surfing teaches you to read (Price). Parsons has developed a method which identifies what I like to call
    institutional supply and demand. He's found a way of telling you what the big money, the whales are doing and as such you are positioned with the larger force.

    You can't learn his methods in a week but if you work with it constantly, after a while, you can start to hear what the markets are saying and they say a lot. Almost like playing poker with your opponents cards face up.

    Best Wishes

    Steve Parsons (No Relation)

  2. #222
    Senior Member
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    Nov 2011
    Location
    Norfolk (pining for the moors)
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    Quote Originally Posted by SMPFutures View Post
    Hi Mike,

    Having looked at my post again it sounds a bit preachy. Sorry, that was not my intention.
    Parsons ideology has been the cornerstone of my trading for about five years and if I could
    sum it up in one sentence it would be this: Channel Surfing tells you what price is doing, BM & RM
    tells you what price may do.

    For example: lets say you have a confluence of 7 of your favourite indicators telling you the bottom is at point A.
    You call me and say "wow look at this we need to get long". Lets assume its the Feeder Cattle contract and I think wow Mikes right, everybody will be looking at that level. So I call a Few friends we pool our resources and sell 500 contracts just above your lifetime bottom.What do think happens to your confluence? The market rockets through it. Price is not driven by indicators but is always driven by supply and demand. Price drives the indicator.

    That is what Channel Surfing teaches you to read (Price). Parsons has developed a method which identifies what I like to call
    institutional supply and demand. He's found a way of telling you what the big money, the whales are doing and as such you are positioned with the larger force.

    You can't learn his methods in a week but if you work with it constantly, after a while, you can start to hear what the markets are saying and they say a lot. Almost like playing poker with your opponents cards face up.

    Best Wishes

    Steve Parsons (No Relation)
    Hi Steve,
    I must admit I had a surreal moment when I saw your signature; then I saw the diclaimer! Lol!! Didn't think your comment 'preachey' at all.

    I must say Mr. Parsons material is excellent, as is his delivery; excellent teacher, though if one is tired, his mellifluous voice will put you to sleep!

    I will bear your cautious tale in mind (a bum steer?) and check the volume before I go long/short; we all know how the Smart Money love to upthrust and test levels.


    Cheers,


    Mike

  3. #223
    Senior Member
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    Nov 2011
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    128

    Ab=cd

    Hello Mike...
    While there is no hard rule that AB MUST = BC, much more often than not it does!
    Price often stalls around fibonacci expansion 78.6 and if it had consolidated around 61.8 watch out.
    In the instance we are using AB did in fact = CD
    and on lower time frames went on to create yet another AB=CD.
    Correct analysis on the price action preceding your green circle high could have allowed a pro active short
    instead of a reactive "fresh level" short
    Good LucK,
    Paul
    Attached Thumbnails Attached Thumbnails Price reversal points-ab-cd.jpg  

  4. #224
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    Hi Paul,
    Thanks for correcting me about the AB=CD, but I'm still not clear on why the red circled intermediate swing high in post 216 made a better place to draw a balance line through the balance point below (to try find Friday's low) than the green circle at the top of the major swing. Drawing the balance line from the green circle gives a target way below Friday's low.

    Anyway, in long position now and next target should be around .3680. Does that look good to you?

    Cheers,


    Mike

  5. #225
    Senior Member
    Join Date
    Nov 2011
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    128
    I think you good.. We looking for long strong upthrusts.... If not, think about taking profit or partial profit @1.3480 ish and climbing back in if level taken out and after subsequent retracement. Also see candle close above 78.6 fib expansion....
    Sorry, I used fib confluence to find low. I couldn't find it with balance..

  6. #226
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    Nov 2011
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    Norfolk (pining for the moors)
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    HI Paul,
    I got out partially @ 3225, left rest on. Will see what it looks like tomorrow and get in long again if it looks right.

    Cheers,


    Mike

  7. #227
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    Nov 2011
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    Norfolk (pining for the moors)
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    Hi All,
    In this chart pic, I have used the centre line of the triangle pattern as the Balance Point to arrive at the current eurusd low, anticipating a rise upwards. However, the trend line drawn under the past lows shows jprice going through the TL and coming back to test that level, indicating a Kiss Goddbye action. THis does not fill me with confidence in going long at this point, based on the BP projection!

    I'd welcome any comments and observations on my assessment.

    Cheers,


    Mike



  8. #228
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    Nov 2011
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    92

    Price reversal points

    Hi Blott your chart is nice, if you look on the left of the chart ,you will see a Gap which can also act as a balance point.The subjectivity is removed by looking at COT.Are big traders going long or remaining short .?

  9. #229
    Senior Member
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    172
    Quote Originally Posted by kolapo View Post
    Hi Blott your chart is nice, if you look on the left of the chart ,you will see a Gap which can also act as a balance point.The subjectivity is removed by looking at COT.Are big traders going long or remaining short .?
    Hi kolapo, so when you see a gap balance point that takes higher priority over other types of balance points? Is there a priority list (for types of BPs) one should be using when looking for BPs? the challenge I am facing over and over again is the presence of multiple BPs on a single swing. I tend to look near the 50% point but that may not be appropriate.

    In this case of EU, the gap is nowhere near the 50% of the swing- it's more like near the bottom 30%. But according to what you are saying, it still gets higher priority because it is of the "gap" kind. Am I correct?

    Also, pardon my ignorance but what is COT?

    blott, you mirrored my thoughts on the EU situation. I wam waiting it out based on my rule - when in doubt pass the trade :-)

  10. #230
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    Hi Kolapo & Duggills,
    The 'gap' is really an artificial gap, isn't it? It's not produced by any surge in volume, rather the weekend trading that we mere mortals are not a party to. If one were to take the 'gap' as a balance point then it puts the whole balance of the leg completely out. A balance point, by definition, is somewhere in the middle, not 30% of the leg. I, like diggills, am confused. COT is Commitment Of Traders i.e. an indication of what type of traders (commercial, retail or speculators) have buy/sell position open. It indicate which side might be stronger.

    So, getting back to BPoints - not as easy except in hindsight, is it?! In the wedge pttern shown, does one take the centre point (left to right & up and down) as the BP, or is there some other part which is deemed to be the BP?

    Cheers,


    Mike

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