KEWLTECH file:///C:/Users/James0014/Desktop/KEWLTECH.htm archive.today webpage capture Webpage Saved from http://kewltech.blogspot.ca/ 22 Jun 2015 13:22:08 UTC search history ←prior next→ All snapshots from host kewltech.blogspot.ca Screenshot share download .zip report bug or abuse donate 0% KEWLTECH Technical Analysis. The only way to trade. Focusing primarily on S&P Emini. With some stocks to demonstrate proper use of technical analysis of the markets. The charts and comments herein are based out of my technical analysis. Trade at your own risk. 10% ISSN 2153-6295 © 2009-2010 Sunday, March 3, 2013 20% Issue 089 - How Weee'd A Chart - Part 5 Yeah it's been a while since I've written something or even write about my angst about some maroon. What should I write about anyways when everything about chart reading has been said. But I should state the more obvious and less trivial and most logical of all. Enter big angst. Lower Time Frame Follows The Trend Of Higher Time Frame! 30% 40% 50% It's completely technical. It's completely logical. But why do people think that the lower time frame can do the unthinkable is beyond my comprehension. Perhaps all the pre-conditioning of hearing about false pops and drops but people who read this blog still do the same thing. The problem when I listen intently to what the issue is, is they completely lack the understanding of the basic concepts of what technical trading is. Seems pretty harsh but that is what it boils down to. Sure they have bits and pieces. Sure they can identify what certain things are. But when you press them to explain it from one time frame to another...the simplicity that they know. The simplicity that allows them to do what they already can turns into mental diarrhea. It becomes completely obvious that the thinking employed to read the chart is really gimmick based not by clear concise thought. If your thinking is not in the infantile gimmick phase, you would be able to see the momentum, see where you are in the price action phase as momentum shifts and know based on the leg where you are and how is progression building up or down momentum. Sure they can regurgitate the content from blog to help them along but the full meaning fails to register when they go from one time frame to another. The thinking process goes from simple to insane complexity in 3 seconds. Momentum, Price Action And The Leg ... And Brain Damage 60% 70% 80% Where they fail is at points of consolidation. Ironically these are the points where accumulation and distribution occurs. The place where a leg start is. The place where they know momentum shifts as liquidity changes the price action from moving singularly in one direction up or down to sideways. So you ask them, here is the leg start in the 15 min chart, what should price do when we reach this previous area of support or resistance? Should it bounce back or run through on the first attempt? They will answer correctly that the price should repel. Then you ask them, where should you see this change in momentum happen? They will then correctly say in the lower time frame. Ask them why. They will say .. Change happens first in the lower time frame. So they go to the lower time frame and that is where the "brain damage" (say it the Bill Cosby way) occurs. It's been accumulating but the price continues to go lower. Did it reach the leg start yet you ask them. No answer. Then they say well its been sideways and been choppy. It just keeps going up and down. I think it will go lower. Then the price pops up and kills them. It's been distributing forever but the price keeps going up? Did it reach the leg start yet? I just told you its been distributing but the price keeps going up. It isn't doing what it should to go to the leg start. So they go long and the price drops and kills them. Then they say... How the hell did it just pop or drop that hard when all it was doing were these little pops and drops? Major Freaking Brain Damage! 90% What is going on? Why so brain damaged? It really is quite an annoying problem. From my perspective, the lesson has been taught in many ways. Biggest clue is how a 2bar reversal can look like a head and shoulders in a lower time frame. It was a huge paradigm shift for me when i realize the significance of that notion. This is a huge hang up if you really don't put two and two together. While price action is producing this huge distribution or accumulation pattern as the price action goes sideways in the lower time frame, and probably 1or 2 candles in the higher time frame, 3 things happen: Get My Feeds Subscribe in a reader Popular Posts Issue 002 - Accumulation Accumulation StockCharts.com Definition The act of buying more shares of a security without causing the price to increase significantly.... Issue 065 Compartmentalizing The Price Action Technical trading is a skill. It isn't an inherent talent. And like all skills, it can be learned and mastered. One of the skills tha... Issue 076 - Sweet Oily Legs Just want to walk through some things about legs. It seems that a lot of what I consider obvious, isn't so obvious to many people. Mus... Issue 053 - S/R Action So now that we know how to find S/R's, lets discuss how they work. One of the simplest concept to learn is the leg. Any chart pattern ... Issue 031 - Two Bar Reversal In my group, we call these tubas, as per Mental Midget. Two bars was introduced to me in myriad books I've read but never clicked with ... Issue 064 - Consolidation Areas of consolidation have so much information to provide. Not many people understand how to use them. When people see areas of consolida... Issue 044 - Doji Magic I remember back in the day, when I just started to trade, and there was this video that TOS was showing off because the music video had TOS ... 100% 1 of 13 7/25/2021, 12:47 AM KEWLTECH 2 of 13 file:///C:/Users/James0014/Desktop/KEWLTECH.htm 1. They forget the higher time frame 1st touch 2. And in forgetting, they think the move will bust through that higher time frame level. 3. This happens because they forgot that they are moving sideways from the original leg. The brain damage goes on further. They ignore the decline in the momo. They have no clue that the sideways movement with the decline in momo were breaking down levels of support or resistance for the first touch --- ergo even fail to recognize the progression. They fail to see, to recognize basic chart patterns and how they work. That as you progress further to the left...you break down the momo of the bigger leg where the sideways action started from. What does that mean? When price moves sideways...what was it doing before it went sideways? Since I really do have to spell it out. If you look a little further left...you should see a big leg up/down. You would think that if you see a first touch coming from the higher time frame, that people who claim to read this blog would come to the clear and logical conclusion that the lower time frame would start to dist or accu by losing momo as the pa moves left, as the pa gets new lows or new high on lower macd, as the pa goes toward that higher time frame level of support or resistance. Why? Is it not by definition that accu happens after a move down and dist after a move up? To prepare for the expected response for the 1st test of that higher time frame level of s/r. And while all this stuff is happening...why do people still ask where will it go even if they recognize the set up? Do they not understand the progression and legs? Obviously your target should be the leg start that hasn't been tested. But it is the obvious they want to disbelieve. It becomes so obvious that people are oblivious that even the basic chart patterns, definitions and constant repetitive way that price and momo moves or behaves is not readily available to them. They only know the setup they like to play but even in full detail. Oh hey this is a double top this will move all the way down to the leg start..and then pops hard at the leg start of the first valley. Goes back to level of understanding. What they don't get, they make up. Sometimes the rational provided is incredible. Almost like listening to the news. The effort to understand is limited to the gimmick trade setup that becomes their favorite arsenal to trade. It works till it don't. There is no real understanding even if they get it right. They couldn't describe it to specific details and conditions. And so if they are not savvy enough, they play those gimmick moves they adopted in the wrong situation. They go long to the moon when they should have shorted or short to china when they should have gone long. Don't be brain damaged. Learn to put it all together! Issue 004 - Falling Wedge One of my favorite chart patterns is the wedge. There are 2 basic types of wedges. And one of them is a Falling Wedge or a Bull Wedge. ... Issue 089 - How Weee'd A Chart - Part 5 Yeah it's been a while since I've written something or even write about my angst about some maroon. What should I write about anyw... Issue 063 - Price Action And Legs I've covered some basics in the last few blog entries. In this entry, I want to highlight some key points before moving further. It is... Blog Archive ▼ 2009 (2) ▼ December (2) Dawg Pattern It is so bullish!!! I want to buy everything?! ▼ 2010 (53) ▼ January (16) Happy New Year Issue 001 - Cycles Issue 002 - Accumulation Issue 003 - Distribution Issue 004 - Falling Wedge Issue 005 - Rising Wedge Issue 007 - Distribution Delayed Posted by KEWLTECH at 7:25 PM Issue 008 - Support & Resistance 2 comments Reactions: funny (0) interesting (0) kewl (1) Recommend this on Google Issue 009 - Trader VS Scalper Issue 010 - Momentum Part 1 Issue 011 - Divergence Issue 012 - News Trader Tuesday, March 6, 2012 Issue 088 - How To Weeee'd A Chart - Part 4 Happy New Year!! Alright, the last few issues, we saw how momentum works through its 2 engines Accumulation and Distribution. We also saw how the price action looks during these times when momentum is shifted from selling to buying and vice versa. We touched on a little bit on how legs help you determine how levels are gained and or lost. This last bit of info that you need to start understanding what you are reading is one of the most significant things you must learn to spot significant levels. The only way to spot them is by reading and understanding the price action. These things are called "levels", "support", "resistance". Some other people call them "poc" and all its variations (vpoc, mr. spoc). People don't get these levels and they don't really understand why the market did what it did because they don't know that the price will always target the previous support it lost that eventually allowed the price to cascade down to where the price found support to start the rally or move up. People come up with stupid calls like "false pops" and "false drops". Logically they can't say it was false because it happened. But if these were logical folks to begin with, they would understand that the market consistently move in the same manner over and over again and there is no such thing as false pops and drops. Its just idiocy to think that way. It also gives them an escape should they fail to read the move correctly. "Oh yeah, it did this false pop/drop just to shake me out of my stop and you know those big guys are taking my money." Issue 013 - Trading The News Issue 14 - Setting Stops Issue 015 - Trendlines Issue 017 - Momentum Part Deux ▼ February (3) Issue 018 - Chart Patterns Issue 019 - Comparative Analysis Part 1 Issue 020 - The Indicator ▼ March (5) Issue 021 - Comparative Analysis Deux Issue 022 - Metamorphosis 7/25/2021, 12:47 AM KEWLTECH 3 of 13 file:///C:/Users/James0014/Desktop/KEWLTECH.htm The progression is clear. What are false pops and false drops? If you read a little bit about legs, you would understand that those "false" whatever always seem to hit, the leg start. Through that simple mechanics, it is far from false, but a constant function. And we know that the momentum is setup through progression to support the resulting move after the "false" move occurs. False whatever will always happen near a leg start. Issue 023 - Moving Averages vs Levels Issue 024 - The Way Things Are Issue 025 - Occam's Razor What is a leg start? Leg starts are significant levels of support or resistance. It is generally near the tops or bottoms of a move up or down. They are the level where you will find your consolidations forming their base whether it be a peak or valley. It is the initial level of support and always the last level of support to be tested on the leg. Understanding how to identify levels of support/resistance and differentiating them as leg starts and understanding why they are key levels is a skill that a trader has to gain. I wont go over the entire blog entry on peaks and valleys, but what is key is what the key level of supports are from those peaks and valleys. Peaks and valleys are the start of legs. Their tips are the result of testing of previous support or current support. And they are key in the progression of accumulation and distribution as a collection they are the top part of head and shoulders and double top or their inverse chart pattern counterparts for accumulation patterns. And they are also produced as juts up/down on any move up or down which are more prevalent in lower time frames. So far, all I've told you is obvious stuff. So lets talk about something not as obvious. When retracing back up/down a leg, one way to find a key level at the peaks or valleys is to find the candle that closed above(for the move up) or below(for the move down) the key level of support. In order to do this, for the retrace up the leg down, you must understand the move up from the leg before your move down. Generally both these levels for the move up or down is the same level. ▼ April (1) Issue 026 - Time Machine ▼ May (2) Issue 028 - Consolidation Issue 029 - Not A Glitch ▼ June (4) Issue 030 - Fundamentals Issue 031 - Two Bar Reversal Issue 032 - When Trends Collide Issue 033 - Stop Losses Don't Work! ▼ July (9) Issue 034 - Trends Issue 035 - Momentum Progression Issue 037 - Time Shifting Issue 038 - Entries And Exits Issue 039 - Beware of the PPT Off this weekly chart, in order to understand why this level here is significant, you can first get your first clue from the immediate leg to the left. From here, you are interested in the 12/20 candle. This candle closed above a significant level of resistance in order to gain a level of support. And the 12/13 candle demarcates the level of interest as the level that it could not close above of, by wicking there. Now sometimes the candles are not so straight forward. That is why I suggest that you look to the leg to the left of the current leg. Issue 040 - Fundamental VS Technical Analysis Issue 041 - Where the money flows Issue 042 - MACD Dawgie Style Issue 043 - Expectation Management ▼ September (1) Issue 044 - Doji Magic ▼ October (5) Issue 045 - ES Go! Issue 046 - GOOG POP When you zoom out, you get a better sense of how important a level is. The logic of understanding the mechanics is simply: what is the level that a candle such as the 12/20 candle had to close above in order to gain a level of support. The qualification is gained by looking at the price action where the level acted as resistance: first by wicking there as resistance or support and second by doji's. How do you localize these areas? Look for peaks and valleys. Look at the level where they congest. Look at the base of their congestion. And then look for the relationship as described above. As you can see from this example, the support found in 3/14/11, was a support they tried to hold from 7-9/08 and 5-7/06, was a level of resistance in 7-9/05, support in 5/01, 10/99 and then finally the level of support gained in 12/28/98 that was the level of resistance in 12/21/98. Issue 047 - The Responsibility For YOUR Trade Issue 048 - Over Thinking It Issue 049 - ES Review ▼ November (3) Issue 050 - And It Goes Boom Issue 051 - Distribution Constipation Issue 052 - S/R Revisited ▼ December (4) Issue 053 - S/R Action Issue 054 - Raid Awareness Issue 055 - Just For Jorge 7/25/2021, 12:47 AM
