Okay, let's crank up another great week in here. The market action should be awesome again, I suspect.

not a huge position....you just kind of never know when the old stuff will kick in again, even though it has been on hiatus pretty much since sometime in december....btw, no heroes here....if they hit my stop I'm gone

did you see the volume in the last minute? wow

It would be nice if they brought it down to at least 79 now. Geez. Constant twenty point moves up like rocket ships, and you have to beg for 5 points back...

Thanks for the answer, Jim. I've found three lines there and keep searching for more.

Originally posted by jimkane

My time levels come from line intersections overlapping Fib levels. Here there was a tight Fib level that overlapped, almost dead on, a line intersection of at least four key lines. Tim Morge I believe it was coined the phrase 'X marks the spot'. I coined the phrase 'Asterisk (*) marks the spot' because I frequently have a slew of lines hitting at a spot that looks like an asterisk. Anyway, that's how I get timing factors, Fib grouping and line intersection overlaps.

Originally posted by MarcinO

Jim, with respect to time analysis, do you use all the Fib levels you apply to price with a similar hierarchy of primary, secondary and tertiary numbers? I am asking, because Robert Miner excluded some numbers used in price retracements, e.g. .786, claiming they are not that useful in time analysis.

Originally posted by jimkane

It seems the perfect price and time balance was too much for it. This is not the teaching point I mentioned earlier, that will have to wait until tomorrow. I just wanted to show what happened there. You really should do the work to see why I had this spot.

Originally posted by jimkane

Moving up off that area. It was a perfect price and time balance there. Everything hit in one precise spot, with the time factor, it went right there, and reacted...

I hear you. I see the chances of this one playing out as like one in a trillion. I'm not knocking your play, and I hope this comes back in, or what setups will I have, but it looks really strong to me. Like it wants another big leg with no pullbacks. I hope not...

Originally posted by rat89

not a huge position....you just kind of never know when the old stuff will kick in again, even though it has been on hiatus pretty much since sometime in december....btw, no heroes here....if they hit my stop I'm gone

mr spikey has been playing in someone else's yard... tired of the hard stuff, i wanted something clear and easier... when i saw the traders dream set up at the xmarks spot in GLD... i went looking for a mr spikey trade with tight stop and clear target//found in GDX .... at the lower line the trade had returned 16/1 initial risk and i took half of trade off... will manage BASED ON GEOMETRY( have to be careful of abcd with abcd in bc leg).... ie if fortunate enough to get there ...

OBVIOUSLY... the mr spikey has no originality and is directly derivatve from the old school chimney trade.... but fundamental in the way i trade it is the entry MUST be based on tools that have been shown here...in addition i just like the silliness....

Okay, I really haven't been in the mood to do the write up for this 21:04 teaching point. I'm not in the mood right now. But, I said I'd do it, so I'll try to do the abbreviated version. This is critical stuff for my way of looking at things. One of my most famous sayings is 'Always anticipate, never react'. By that I mean one must be ready and waiting at a completion area, already knowing that as long as things don't act oddly, and an appropriate trigger happens, the trade will likely be initiated.

Even though it seems like I wait for an area and then see what I think at that time, this is not quite the right perception. It all starts with an idea. It starts with a naked chart and a view of the 'context'. What do I think is happening? What side of the market do I want to be on? No area will ever be able to answer those questions for me. Areas are a dime a dozen. Which one do I trade, which do I fade (fade meaning do the opposite, in most cases this means ride through them with an existing trade), which do I stand aside from?

None of that can be gotten from the area. It's all about which areas to play at the higher levels of this methodology. Areas, for me, are about way more than initiating trades. They are about clues and information. The more I see what the market does at areas, the better picture I usually get. Then I can formulate an idea, together with 'context' and my view of what the market is doing, about what moves I want to make.

See, I post areas in here for basically one specific purpose. To point out to those trying to get better at this methodology where to focus the work on, to give motivation to trying to understand what I see as the important areas, and to figure out why I see them as the key areas. How these areas are used, that's at the next level. Some are trading areas, some are for management purposes, some are simply for clues.

Here's the teaching point. Not every area is to initiate a trade. Whether that is on my agenda or not has to do with things that come from outside the setup. 'Context', in short. My decision of what side of the market to be on, and if this area is a 'safe' place to enter if I'm not already in, and so on. Setups/areas only tell me where I'll look to get in if I am looking to get in.

If the market is up 20 or 30 and I post an area, that is not necessarily an area I am thinking of countertrend trading against. Maybe I only want that for management purposes. Maybe I do want to countertrend trade it. I cover that a little in advanced mentoring, but I tell students that until they feel they have mastered trend trading and applied it successfully for at least five years don't even think about countertrend trading.

Others in here live for countertrend trading, but it isn't a usual part of the KT methodology, per se, as has been discussed in here ad nauseam (and has been the source for many conflicts). It has its place, even within the KT methodology, but only under very limited circumstances, and only by the very, very advanced practitioner.

So, the teaching point is how is an area like that 21:04 post area handled when one is say short countertrend? Or not short countertrend? Well, what's the plan? What is one anticipating? If one is countertrend for the very short-term, and is waiting on an area to get long, then one plays it that way. My approach in such a situation would be to confirm it sees the area and wait for a trigger for the long, and do it that way.

This, though, gets into some much more advanced material that I can in no way cover in this post, or without a lot of time and live charting work. All this is beyond the scope of this forum or this post. Point here is that the timeframes and layout of the two plays matters quite a bit when trading one area into another.

That being said, and skipped over, I may not be short, let's say, off the high area, but waiting for it to come in to my setup for the long area. I may be short and not thinking about long, so I will see how it acts on the long area, and adjust may management accordingly. I may be short and ready to get long off the area. I have to see it react and trigger me, otherwise I want to stay with it in case it blasts through the area. I also like when it 'sees' an area, reacts, then rolls and fails the area. This is a very good thing in my opinion. It is acting in a way I understand, and that helps me make good decisions, I feel.

So, Jim, can't you just tell us what you are thinking at each posted area and what you likely would look to do? Hell, no. First off, then people would have all they need to start trading off my posts. That's not going to happen. People won't learn anything or be motivated to learn and do the work. This is an educational site, not a 'pick' site. My posts are to help guide the work process, not to have anyone doing piggyback trades off of them. That why, on purpose, you don't hear me saying what I think the area's best use is. You figure that out. You do the work. You learn.

The purpose of this forum is for people to better learn the KT methodology, to work on improving their skills at this, and to ask questions and get assistance in learning the techniques. That is frequently lost in here. If one is more advanced they can help others. If one is struggling, they can ask questions. That's why this forum exists.

I help in the ways that I can. I'm sorry if some don't understand what it is I'm trying to show, or how I show it. All I can say is, if I post a level, and you can't figure out how I came up with that, you should work on that very level until you do understand. What is the point in moving on if you haven't grasped that level yet?

So, to reiterate once again, the levels may be for trade initiation, management, clues, and so on. 'Context' and layout tell me what I am looking to do at that time. It starts with an idea, which comes from stepping back and looking at a naked chart. The idea never comes from the setup. The setup just tells me 'where' if I want in. 'Always anticipate, never react'. I always want to know what I plan to do well before any area is hit. I may adapt, change, flow with the dynamics of the situation, but I do this with plan A, B, and sometimes C already in my mind.

Great post, thanks jim

There it is!!!

I was going to ask you, roofer, if you caught that gold move, and I decided to look back again at your posts, and I see you caught it via the GDX, and the oil move, too. Nice. Wait a minute, I just realized, what's the point of this post? Hmmm, I guess there is none? At least it will up my post count by one.