Scared money don’t make no Smarty Pantalones.
What makes some money of somebody smart?
The fact that the money bag does not want to pull down (draw down) their pants (naked holdings such as a Naked bar or a Naked Gun).
This can be achieved with two main tools: commanding size & knowing low risk entries (i.e. in a trending market).
This articulo is to give some ideas about what they might be looking at.
Let’s not start with saying that I was right again. Vanity is vanity even if it is intellectual.
A give away of professional trading activity is block size. On MT4 you would see an increased number of quotes as they are getting their larger size filled piece by piece.
There are obvious things about their thinking, such as they undetstand stretch conditions, aware of weekly window envelopes and they tend to scale out of position to get out untraceably.
Getting in is harder, it takes a conscious effort of building a position without screwing up the average cost for themselves by moving the price too much at once carelessly.
I wanted to talk about 2 smarty pantalones trades that I seem to have identified.
This is a trade that works in a trending market. I defined trending as multiple closes 45+ pips away from the hourly E44.
The trade requires price to separate from the 8EMA on hourly opens for more than 8 hours. The first return to this EMA is an easy fade towards the next Weekly target. Normally this works only once, but the last time around they managed to milk this twice: the first return was a near miss by 3 pips, and the second bullseye got credited as well.
Opportunistic buy / sell
These are 62 and 69-pip displacements of the 6-sample hourly low/high. I made cyan highlights that should conform with the Tramp again to be valid.
I need a separation of 4 out of the last five from the 62-pip displacement line for the entry to be valid.
image quality: jpeg on cell phone – at work again
I can’t seem to find that episode of the Son of the Beach where Noch Johnson ends up in a made up mid-American country and greets people with “Buenos retardes”. You know the one where they eat beans with the world’s highest protein content, then he sits on the leather couch and blames the farting sounds on it. Call me if you have this episode.
8.16x peak stretch , Green River (mean) on the top
5x stretch is the resistance at the moment (White)