Day Ralio: Princi Pals

Learn to make good (compromise)
This involves taking losses voluntarily at times. I.e. for the last 2 days I could had closed out my open positions for at least 5 times for a tiny loss: the 1,500 balance would had dropped to 1,300+, but the prise would had been definitely worth it: no open positions = no drag in any direction. The next day may prompt you with a very different situation. Appreciate the value of a clean slate.

Build equity: take small trades (by distance / time duration) to be able to better the equity / balance ratio and extend on your margin rope. The lower the spread, the higher the leverage, the more edges you have. Small profits can really add up, and the 10x$10=$100 is certainly scalable.

Money management is just as hard as the other part:

Get the reading right

The main thing to concentrate on is understanding the Queens desires.
An example for misinterpretation of a divergence:
The lower low with the higher RSI2 is disqualified by the embedding: the Queen being perma oversold.

That steep rising yellow was with oversold stoch D and so I would change the colour later; breaking it was an excellent continuation entry.

Try to grasp the concept of measuring legs and divergent ones.

When the market is “supposed to be” doing something, and it does not do it, something is up, and you better put on a hedge until you figureit out or it shows you what.

A volume signal (30m) is not a signal on its own: a high print is definitely showing for some interaction, but it may be only partial unload of the holdings, and as such may not be the actual reversal point.

Volume is much more usable on a cell phone screen. The spike on the left did not reverse the price for good.

Keep an eye out for flags
Continuation patterns can keep you on the right side of the trade.

The last wave can go on forever, so if you see a 30-m doji printing after a 9-sample separation from the water line, you better go back in until a new higher high/lower low with a 4H exhaustion and look for a 30-minute red tail (which tends to appear in Bear Zone 1 / Bull Zone 1).

4H on the rampage check list

  • Is the 4h energy exhausted? (CI 7 sample < 37)
  • Have we seen a red tail? (2-4 sample 30-min burn – 3 sample mostly)
  • Have the Infantry (30 min) put up fights 3 consecutive times (RSI2 divergences)?
  • Has there been a 40-sample (30 min) lower low / higher high?
  • Has the daily fuel limit been reached? (3-day average ATR)
  • Is price in the Bear Zone 1 / Bull Zone 1?
  • Was there a volume flush?

At last, the red tail is showing.

Or was it this one?