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That makes total sense. I have also found that the 'first touch' levels from the extreme end of leg segments rather than in the middle have a higher probability and bigger moves in general, also tend to have a wider base. On the weekly timeframe Eur/Usd could you confirm that you see what I see? thanks! [img]http://s22.postimg.org/xwsz8h14d/image.jpg[/img]
Explanation: The falling wedge accumulation pattern was seen on H1 also with MACD divergence which shows momentum turning bullish, and eventually we got the huge pop. Would it be considered a trend change targetting those green resistance levels? or am I wrong on something? Thank you in advance
It may be just me, but the images are super small on my end.
"I have also found that the 'first touch' levels from the extreme end of leg segments rather than in the middle have a higher probability and bigger moves in general, also tend to have a wider base."
Exactly my experience as well @Mudshark, first touches of the start of legs and subsequent bounces/pops are very consistent, even down to the smallest of timeframes.
I have actually studied his stuff and chatted with him over a period of time through email. From what I understand he also traded with Lakai of tradeitdontdateit.com
I think the method has validity, but it looks great in hind sight, but how does one trade it in real time?
Trading any method in real time.... Man I wish I had THE answer.
Here's the best I can answer that:
Trading price action in real time is a matter of estimating probabilities within a given framework, in this case, the kewltech approach/framework to price action trading.
First I take note of the context of the market. Where is price now, where has it been recently, where is price in relation to the rest of the chart? Are we in a BTFD mentality, sell rallies, trends, etc.
Next, I look for support and resistance levels on a higher timeframe (usually the weekly/daily/4hr/etc). I find where price is currently in relation to these levels and begin to form an opinion on where price may go, all the while focusing on where price is NOW.
After that, I narrow my focus to the lower timeframes, or my trading timeframes (usually hourly/15m/5m/1m/etc). What is happening now, where is price on these lower timeframes? What levels are we near, what levels are possible in the near term (while reminding myself anything is possible).
Once I am aware of the context of the higher timeframes and have a grip on where price is on my trading timeframes, I begin to engage with price and judge probabilities as price reacts to level after level intraday. Is price approaching a level? Play that level from a probabilistic standpoint. A time-developed skill of reading and reacting to order flow becomes key here. Look for supports to hold in an uptrend, resistances to hold in a downtrend, previous supports turn into resistances as they are broken, and vice versa.
@David_R, I hope this helps in some way. Please feel free to ask any questions, everyone has a different viewpoint that we can all learn from and apply to our own trading and trader development.
Thank you for th explanation @TheTradeSlinger, do you have any advice on how to work with Progression? It is my main weakness and I can't seem to find a fix for it. Recently my trade calls have been very bery accurate but I get caught in the Peogression, when price doesn't move much and is in a consolidation. Many times accu/dist is hard to find because there is no clear chart pattern or divergence on the MACD..
I view progression as weaving together a story from all the different trading timeframes into a narrative that makes sense to me, or that creates a framework from which I can make trades in.
I try and figure out what each timeframe is telling me and put together how they all relate to one another.
It gets back to the idea of 'time buckets'. Are the smaller timeframes building enough momentum (progressing) to offset the higher timeframes?
Momentum progression is not always a chart pattern or a MACD pattern, it's sometimes simply the length/speed/duration of each leg placed into context against another leg.
Post an example of what you are seeing and having trouble with @Mudshark.