We speak here of planning, and anticipation, and consistency. We speak also of perfectionism and the sin of pride. At this point, you should be ready to anticipate the market at every step. You have the information you need to know what should be unfolding, and the information you need to tell you if what […]
There is a special form of lying that is universal and rampant. It corrupts our perceptions and causes all kinds of problems. We constantly engage in this form of lying, and we normally do not recognize when we are doing it. And yet it is very harmful to our efforts to develop self-awareness, and our desire to be conscious of ourselves, and of the world around us.
In congestion exit we leave the known, and we embark upon the unknown.
In doing so we must violate the boundaries of normality that were so good to us in congestion action. We step out now afresh, in search of new limits, moving first into that arena where limits have not yet been set.
In congestion action trading we move from one limit to another, and reap our harvest at the edges, placing trades near the confines of congestion. The perfect personality for this type of trading is the aware technician. In congestion action trading, we know our limits. The task at hand is to be perfect in our execution, and to gather in every stalk of grain in the field. Harvest time is here.
On early warnings. We speak here of prescience, prognostications, and early warning systems. We speak of intuition and magical thinking. And we look at methods of foretelling change in critical times of peace and war, and in nature. We would all like to be prescient traders. If we could foretell the future we would be […]
Relative values chart the relationships between price values and market structure, and contribute mightily to the unique flexibility and power of this methodology. These relationships are very helpful because they release market structure from the need to be expressed in price. The trader or analyst can now manipulate expressions of structure and visualize various structural conditions that can be applied across different time-frames and different markets. … more…
Things that are up to me: my will, my opinions, my aims, my aversions, my own grief, my own joy, my moral purpose or will, my attitude towards what is going on, and my own good, and my own evil.
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In every field there are things that the sophisticates see that the unsophisticated do not see.
Here we are looking at the beginning a trend, that is, the underpinnings of a trend — something that occurs before there is enough evidence of what is happening for the crowd to really notice it. In congestions and congestion action trading the crowd is wrong at the edges.
In the market we see such sudden change on scales small and large, and we see them all the time. Sometimes they show up as big gaps, sometimes as sudden reversals in trend, a reversal without the intervening action of consolidations and congestion. The cause usually stems from unexpected market information, such as a crop report that upsets forecasts in a radical way, unforeseen central bank intervention, a war starting or stopping, weather anomalies, an assassination, a government falling or a revolution succeeding.
Many if not most traders wait until the trend is established and then pauses, before they try to jump aboard. Often they are timing their move exactly wrong, when the trend in question has paused for good reason, namely that it has reached higher time period support or resistance. This frequently means they are buying resistance or selling supportâ€â€a classic and expensive trading error.