Someone needs to ring a bell to start you guys posting...

M, you need to take that # sign out for the chart to show.

just did

Well, this was a great object lesson in the pros and cons of moving the stop. I won't say moving it too quickly, because if we knew it was too quickly at the time we wouldn't do it, obviously. Over a series of trades you'd have to decide if this was 'too soon' or not. In hindsight, I am thinking it wasn't a good idea (keeping in mind I also thought at the time it was the better move). One thing is your line that you showed, another reason is two similar TL's I had, but at the time I didn't heed them. If you can help us out, can you post a clean 3-min chart, no GLOBEX, with two TL's on there. On from the 11:16 to 13:55, and one from yesterday at 13:30 to today at 11:16. Now, how good of an idea was that stop move? That's a classic example of what I show as a terrible place to put a stop. Wish I could have a 'do over' on that one. It was good it gave a second shot, but it never should have been necessary for me to be looking for it.

Jim, Michael, thanks. Thanks for keeping up the analysis, very educational and unique.

BTW it seems J.D Hamon wrote some books in the mid 1980's discussing Balance Point Lines (BPL) and many other technique.
These are the same lines as the ML of Jim's adjusted ML's (when price respects the upper // or lower // after the anchor point) . Hamon (Andrews student) also advised to use parallel lines with the BPL's, thus creating the adjusted ML.

Jim's way of drawing these using ML's with adjusted handle is easier.

Yes, BBJ, all I did was find a way to use a tool to achieve a // line set, with division and warning lines, in one easy step. But what this led to was some other concepts that are much more difficult with // lines, such as a 'balanced' set. This is where I look at all the points, and although none may actually hit any of the set lines, maybe there are 5 or 6 points that all hit within the same distance, some before, some after various lines, and I come up with a good set that has no contact points at all. Try that starting with // lines.

I also adjust many, if not most, of my sets as price action unfolds, usually micro-adjustments, another thing // lines will never show you. The ability to balance all price action within a movable set is invaluable to me, and something I work on with my most advanced students (it's a bit much for a forum post, not the concept itself, but which adjustments, and when, and why). So, for basic standard adjusted sets, the ML tool is fantastic, and many of the concepts are very old. On the other hand, which moves I use to build sets around, and why, that I have only discussed with my mentor students, and that I haven't seen anywhere else. But I should check out Hamon's work just to hear first hand what he was saying.

Nice post Jim.
Personally I only have one book by Hamon:
Advanced Commodity Trading Techniques.

He only touches on BPL's briefly in this book.
The book is an introduction to different techniques, with Bibliography at end of each discussion.

Here's the 3-min chart with those TL's.





For me, the stop should have stayed put above the 4PT reversal high.


Chart created on QCharts, courtesy eSignal

hindsight, as we know, is always 20/20. What if the 4pt failed and you give all that back? There is no wrong or right here imo.

Well, my point is mostly that the stop should always be technically placed, no matter what management approach is taken, and here when I went with the moved stop I lost sight of the technical placement of the stop, I'm not sure why. This would be an example of a 'mistake'. Like I always say, there is no right or wrong on a trade, only trades that play out or don't, according to probability. But one is wrong when they don't follow their 'Trading Plan', and when I overlooked these lines (I had them right there), that was an outright error on my part in my opinion, according to my 'Trading Plan'. A lapse of concentration, whatever it was. No matter how it played out, even if it didn't respect the lines, it was an incorrect assessment on my part to not factor that in when searching for a technical stop placement. I'm just laying it all out here so everyone can try to learn from what I am saying. Plus, I think it is good to see me discuss things close to real time, and not always do this flawlessly, to show the dynamic aspect of trading, and how once the techniques are developed it's all about trader performance at that point.

Nice GLOBEX follow through so far, right off another tick ABCD.

Thanks.