02/24/2012 Intraday Watering

[L_T]

Good stuff. This is what I see so far today. You must be using 5 minute price bars right? Overhead resistance at the green dashed line. Will it fall back or keep going higher? Is it nerdy to actually like watching these bars print?

LT im looking to buy 1390 spy puts at the touch of cobras measured move target as i typre they are selling for 1.96 i like stuff at 2.00 range and today bid ask spread is tight which for a friday is rare.... now i will also buy puts if reversal happens before target.....


hiram

also don't forget the target.

[Cobra]

consolidation here means a breakout on the upside is more likely.

[grachu]

cobra do you think we are looking the 140 .. psychologically this market wants to go UP and no red close for you my friend... !

[taggard]

What do you think of Al Brooks' new three books compared to the one older one? I've been looking for someone who has read the old and new to see if all three of the new are worth picking up.
Can you share any of the details of the types of breakouts you take? Just curious.

good morning cobra

your last couple nights reports are in my opinion are each worth the 120 i paid you for the year! between your daily dose of wisdom and als three new books my home grown strategy of intraday trading spy breakouts via options has put me in the mid 4 figures for my year to date return using my standard 10k position. i dont post much but i read everyday and if work doesnt allow me to follow post by post i always make sure to replay the market using ninja trader as i read the live posts, this also lets me score other posters effectiveness from a call standpoint. to sum up for anyone reading this post paying the 10 mthly or 120 yearly is in my opinion the best value anywhere on the internet.


Thanks Cobra I appreciate your hard work!


P.S i also owe huge props to bullbear Al Cougar and 99 for unknowingly assisting in my tradeing education.

---------
only my opinion--the first book has everything you need if you spend a lot of time with it due to the simplicity of the method. generally you can make a very simple inclusive statement--but it requires the listener to either have a great deal of understanding--or be willing to put much concentration into that simple thing. or you can make a long series of exclusive statements and in theory the listener is slowly drawn though the data and learns.

the glitch is the more you explain--the harder the reader has to work to get back to the original meaning that the whole explanation started from. or the the less you explain the statement the more the student has to struggle to grasp what is contained in the simple statement. in both cases the student should be careful to consider the possible pitfall and err in the direction of overdoing it in the direction he chooses (eg simple idea more thought and work--complex idea more effort to grasp the root meaning)

in this context if you look at what al is saying--at it's essence it is

(1) "every price bar tells a story or has meaning" (this is it in a one sentence nutshell the problem is the idea is too compact for people to grasp)

(2) "groups of price bars have meaning"
(3) "with proper understanding of 1 and 2 you can in effect "understand the market in every moment it is open using nothing but a 5 min chart with a 20 ema on it".
(4) cut down the number of trades and scale size of trade as you get better

Optional stuff that al notes but for one reason or another doesn't always do.

(4) the best thing to do is find a trend and get in fast if it is a fast trend--or buy a pull back if it is a slower trend. (he scalps too)
(5) pick only optimal trades (eg strong trends) (he takes lots of trades)
(6) stick with one time frame and spx futs (he buys some stocks and different time frames)

Key considerations (to me)

(1) if al likes to be in the market alot--is this picking the best trades?
(2) what mental processes does the student need to apply to actually do this 5 min stuff day in and out and stay focused in the right areas. (what does the student need to do to concentrate that is not taught in the book)
(3) is the point of trading to make money or to have fun
(4) how much time is trading worth given our short time on the planet

what i am trying to say is "don't get lost in a forest of ideas explained in insane detail for 1500 pages and forget al's real brillance--every price bar and every group is telling a story if you listen. "looking for something (eg chart pattern etc) is not the same as looking at something." when we look for something--even as subtle and cool as some of als more amusing 1-5 price bar patterns are--we fail to see everything else. we need at all costs to look at what is going on not what we want to go on or what we learned should go on.

another way to say this is "listening is not the same as thinking"

I was too busy thinking about too many things one after another. He said that when we talk to ourselves without listening carefully we usually are not aware of preoccupations or obsessions that separate us from someone or something.
LISTENING. . .IS DIFFERENT THAN THINKING BECAUSE IT IS MORE REFLECTIVE MORE OBSERVANT


good luck with your trading

[Cobra]

key time. i'm not sure if it will breakout here, took too long to be there.

[BullBear52x]

my line in the sand for today.

[Petsamo]

Da banks don't wanna rise

[Carlos]

Indicators all show overbought conditions. But things aren't going lower. So likely things will go higher. I think its risky to get in at these levels. We are touching tuesday's high but not broken yet.

[BullBear52x]

Da banks don't wanna rise

I think the Diamond top will play out on XLF, bet on it any how.

[hiram]

ok so your dashed line is very close to where cobra had measured move target set at... so shorting around that area is good set up with tight stop couple points above target then i would watch how price reacted to 5 10 and 20 day ema which would have ended the trade at around the 20day break fail for me and in my world that was 1000 bucks in under a half hr then done for the day im mostly a before lunch trader due to my business comitments. funny thing is i cant trade and write so i havent done anything yet today. not to worry though never a shortage of opportunities to make money and i like to chat.

hiram

p.s. top 10 fav things to do in life for me is watching bars form......

Good stuff. This is what I see so far today. You must be using 5 minute price bars right? Overhead resistance at the green dashed line. Will it fall back or keep going higher? Is it nerdy to actually like watching these bars print?

LT im looking to buy 1390 spy puts at the touch of cobras measured move target as i typre they are selling for 1.96 i like stuff at 2.00 range and today bid ask spread is tight which for a friday is rare.... now i will also buy puts if reversal happens before target.....


hiram

also don't forget the target.

[waverider]

eur/usd

[L_T]

Good stuff thanks.


[/quote][/quote]

LISTENING. . .IS DIFFERENT THAN THINKING BECAUSE IT IS MORE REFLECTIVE MORE OBSERVANT


good luck with your trading[/quote]

[Al_Dente]

PAGING TAGGARD
What is the title of the first Brooks book?
thanks
PS: I luved Dancing w Lions, esp the “find the losers” concept (and more).
Am still working on other homework u gave me (eg: eliminate everything not essential to goal, that’s taking me a while….)

THANKS AGAIN

[taggard]

ADD ON--

for thinking and listening--consider cobra's use of measured moves. i like them and have used the idea for years. al makes the point they are minor in importance and not that big a deal. in terms of thinking a measured move is a conceptual overlay that attempts to predict future action. that would be thinking in the thinking listening model. next consider cobra's frequent use of volume spikes on exhaustion bars--this would be listening. the difference is that when cobra or anyone refers to a measured move it is not real--it is only a likely outcome. when cobra or anyone refers to a price bar that is real. thinking is an abstraction that can be useful but is not real in the same way the thing being thought about is.

the danger for the student is confusing them--everyone focuses on targets projections and so on--this is fine as long as it does not distract or weaken our really powerful skill--listening feeling and seeing actual action.

power is seeing a trend and jumping on it--not approximating the outcome of the event prior to it's occurrence. often to the beginner the inverse appears true. as long as we always remember this it's ok to do all the thinking we like. but al's real contribution is all based on the idea of listening to the action and then entering in an exact way. For the beginner memorizing all the exact entries is interesting and a good exercise--but only if the idea of focusing on solid trends ASAP is not lost in the process.

sorry if all this seems pushy--but there are many posts here with conceptual targets to every 1 post of real listening--this is not in any way a criticism of conceptual targets--it's just pushing the essence which is listening to the action.

good luck everyone

[Cobra]

C&H target.

[L_T]

Nice add on. Especially "power is seeing a trend and jumping on it--not approximating the outcome of the event prior to it's occurrence"

I've been thinking a lot lately when I read various blogs about the markets, "OK people enough with your 42 negative divergences it's not going to go down until it goes down."

[quote="taggard"]

ADD ON--

[btran874]

I'll be extremely surprised if wave 3 don't get to at least 1380+

[BullBear52x]

Financial or banking? XLF, BAC, and C here. all under 5 dma

[jimme]

Da banks don't wanna rise

I am very thankful. jimme

[grachu]

cobra if all major players are expecting a pullback would not that INVALIDATE one ?