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Actual for You - Forex Secret - Enter To Trade Using Slanted Channels At Forex Market - Part I
So now you have a book to sell, a web page to sell it on, and now all you need is some visitors to come see your page.There are many ways to generate visitors, and generally in this arena, the money you spend will be about proportionate to how good of a lead or visitor they are. By this I mean that this area of web resource is fairly well advanced, and just about everybody that has a web site and is serious about their business is using some form of traffic generation or another.This is a really broad field, and if you type in “web traffic” to any search engine you will come up with wildly different levels of traffic and qualities of traffic. If you see a ‘deal’ that is too good to be true, it probably is.With that in mind, I want to briefly cover the types of web traffic that there are. Web traffic ranges from almost worthless to very targeted and productive. For example, on the almost worthless end you have types of traffic like pop-under or exit traffic, guaranteed hits, surf traffic, and banner impression traffic.Without going into a lot of detail on how each of those forms of traffic work, they all generally work on the principle of very high volume. So for example, maybe it will take 10,000 visitors or more to get one person to buy your book, or even express an interest. If you go into these forms of traffic thinking you will buy 10,000 or 20,000 visitors and wait and see what happens, you will be very disappointed.This type of traffic is much more effective when purchased in large quantities, and instead of sending them directly to your sales page, you send them to what is generally called a ‘squeeze page’, where they are very quickly offered a free ebook or set of lessons, in exchange for their name and email address. What this allows you to do is capture the person’s information so instead of just having one opportunity to sell them as they look at your sales page, you can begin an email campaign, sending them some informative letters via email every few days. Your intent there will be to direct them to your web site after developing some contact with them. This way you have multiple attempts to present them with your sales offer.One thing that is extremely important is tracking everything you do, especially with this type of traffic. For example, if you spend $300 on 100,000 hits from one source or one comp
2. In this chart, the recoil from the channel lowest border (the point of the deal opening) differs from the breaking through the channel lowest border. Under the condition of the breaking through the lowest border, J. Murphy recommends closing all positions. For instance, I have detected 7(!) breakings through the slanted channel lowest border. Notwithstanding J. Murphy recommendations to close all positions, the currency is keeping on moving along the ascending trend.
3. Why does J. Murphy recommend closing the positions after breaking through the slanted channel lowest border in the case of the ascending trend? Probably, it would be more reasonable to close deals in the vicinity to the ascending channel upper border. However, the problem is the following. J. Murphy designates the trend ascending channel just with one line. That is, according to his theory of the trend channel, the ascending trend upper border does not exist (the picture of the channel corridor is copied from the book by E. Neiman).
4. J. Murphy advices are in ev
1. Offer a free ebook that's published right on your web site. They would have to stay at your web site to read it.2. Give your visitors a different free bonus for each link they click-through on your web site. Example: "If you click on this link you'll get a FREE course!"3. Make your content into a story format. They will want to keep reading to find out what happens at the end of the story.4. Offer a search option on your web site. People will stay longer because it gives them the option of searching through your web site using keywords.5. Provide a chat room on your web site. They will want to chat with other people that are interested in the subject.6. Write your content so it attracts their five senses. Use plenty of adjectives. The will stay focused on your web site and block out other distractions.7. Add a "FAQ - Frequently Ask Questions" part on your web site. People won't email you a question and leave. They will stay to find out the answer.8. Offer easy navigation. People will leave quicker if they have a hard time finding what they're looking for. Don't get them lost or they will leave.9. Give them plenty of things to do at your web site. Allow them to submit classified ads, play interactive games, add their link, sign your guest book, etc.10. Offer free online tools they can use right at your web site. It could be a search engine submitter, ad or letter templates, ebook compiler, etc.
1. The work inside the slanted channel (recoil from the slanted channel level).
2. The work on breaking through the slanted channel level. In its turn, it includes the following aspects.
a). One can work along the trend – i.e., under the condition of the ascending trend, it is the breakout through the upper slanted channel (the level of resistance). Naturally, under the condition of the descending trend, the situation is reverse.
b). One can work against the trend – i.e., under the condition of the ascending trend, it is the breakout through the lowest slanted channel (the level of support). Naturally, under the condition of the descending trend, the situation is reverse.
The scheme of presenting the materials is the following.
1. We will examine the points of opening and closing deals in slanted channels as this subject is submitted by the classicists of Forex – J. Murphy, E. Neiman, T. DeMark, Swagger, etc.
2. We will criticize these techniques. It will be explained why a trader can lose his deposit when working strictly according to advices given by J. Murphy, E. Neiman, T. DeMark, Swagger, etc.
3. It is necessary to find out the sound decision to these problems for detecting proper points of opening and closing deals in slanted channels according to Masterforex-V Trading System.
Points of opening and closing deals in slanted channels according to J. Murphy
In his “Technical analysis of future markets: theory and practice”, J. Murphy recommends for opening deals in slanted channels to start from the 3rd (!) recoil towards the direction of the trend in force.
J. Murphy considers that the trend line can be successfully used in solving a series of problems - when the third point is detected and the tendency type is determined. As regards this tendency, one of the basic principles is the following. The tendency under development is tending to continuer its movement. Consequently, as soon as the tendency takes a certain tempo and the trend line takes up position at a certain angle, as a rule, this angle is remaining the same during the tendency further development. Under these conditions, the trend line does permit determining corrective phase extremes. And what is more important, the trend line can indicate possible changes in the tendency.
Let us suppose that we deal with an ascending tendency. In this case, corrective (or intermediate) recessions either approach the ascending trend line very close or even touch it. Under the condition of an ascending trend, the future trader is planning to buy at recessions. Therefore, the trend line plays the role of the support edge (limit) below the market. This border can be used as a zone of “buy” (purchase). If the tendency is descending, the trend line can be used as a level of resistance for “sell”.
Until there does not occur a radical turn in the trend line dynamics, the trend line can serve for detecting “buy” or “sell” zones. However, in Charts 4.7a and 4.7b (see below), at the point #9 such turn does take place. It is the signal for liquidating all positions opened towards the previous tendency direction. Often the breaking through the trend line is the first evidence of a radical turn in the tendency type.
Chart 4.7a. (For view the picture see notes in end of article)
As soon as the trend ascending line is established (fixed), one can use the subsequent recessions, which reach the trend line, as zones of “buy”. In this chart, the points ##5 and 7 can serve for opening new positions - or subsidiary long ones. The trend line breaking at the point #9 indicates a cardinal change in the tendency character – probably, the tendency has become descending. Consequently, at the point #9 all long positions must be liquidated.
Chart 4.7b (For view the picture see notes in end of article)
The points ##5 and 7 can be used as zones of “sell”. The trend line breaking (the point #9) testifies the possibility of the tendency turn towards the ascendance.
Criticism of J. Murphy’s technique of opening/closing deals in slanted channels
J. Murphy recommends closing all long positions when the slanted channel level is broken through. However, this author has not explained the following aspect:
What is the difference between the false and true breaking through slanted channels?
In order to understand why a trader who works according to J. Murphy’s technique will lose his deposit for sure, one must look at Chart 2.14, copied from the book by E. Neiman. That is, there occur false breakouts not only at the encircled point but also to the left and right of it.
Chart 2.14 (For view the picture see notes in end of article)
Losses will be inevitable if one works in this channel according to J. Murphy’s technique. J. Murphy’s erroneous advices are the following.
1. One must open a deal only starting from the 3rd point of contact – i.e., the recoil towards the trend in force. To the left from the circle, there were three touches. Did J. Murphy imply these contacts when he recommended opening deals to start from the 3rd recoil? Probably, one can regard these three recoils as a single touch. Hence, what’s about the 3rd contact? That is, where is the recoil from the level of support in the ascending slanted channel?
2. In this chart, the recoil from the channel lowest border (the point of the deal opening) differs from the breaking through the channel lowest border. Under the condition of the breaking through the lowest border, J. Murphy recommends closing all positions. For instance, I have detected 7(!) breakings through the slanted channel lowest border. Notwithstanding J. Murphy recommendations to close all positions, the currency is keeping on moving along the ascending trend.
3. Why does J. Murphy recommend closing the positions after breaking through the slanted channel lowest border in the case of the ascending trend? Probably, it would be more reasonable to close deals in the vicinity to the ascending channel upper border. However, the problem is the following. J. Murphy designates the trend ascending channel just with one line. That is, according to his theory of the trend channel, the ascending trend upper border does not exist (the picture of the channel corridor is copied from the book by E. Neiman).
4. J. Murphy advices are in evi
One has to wonder, in light of recent and past news highlighting companies and universities facing lawsuits for discrimination charges, what kind of professional culture these corporations and institutions are building within their ranks. Where is the “zero tolerance” policy? When my employees assemble each month for our staff meeting, everyone has the opportunity to view our company’s culture up close. This is the time that administration also reinforces company policies, procedures, and changes to the workplace. Further clarification on policies is then available to our employees through our intranet, handbooks, and senior managers.The culture we create within our companies is what defines and distinguishes us from other entities. It isn’t always clear and it isn’t always easy to develop. Yet somewhere along the way as we build our workforces and internal structure, we must define what our company’s culture will be. It is also rooted in the company’s policies, practices, employee makeup, workplace decorum, internal structure, and public presence. Leaders within an organization must be ethical role models for their staff. They are the standard by which the company and employees will be measured.Building a company culture begins with several key items:·Develop a mission statement outlining the company’s core values;·Evaluate strategic goals. These will include quarterly and annual goals;·Institute a clear chain of command and responsibility using organizational charts;·Establish a clear code of conduct for employees and management;·Have your HR department develop and issue employee handbooks and guides for employees to reference;·Encourage interaction among departments to promote a sense of unity;·Develop and use an Intranet to educate and engage employees; and·Evaluate practices and performance on a quarterly basis using surveys to ensure success.Just as no two cultures in our world are exactly alike, company culture differs by industry. Positive employee relations, diversity, fairness, honesty, and solid partnerships can strengthen a company’s culture both internally and externally. A company’s culture must also be flexible so that it can be tailored as the company profile evolves. Practices, policies, and goals may change when modifying the culture within your company.It
3. It is necessary to find out the sound decision to these problems for detecting proper points of opening and closing deals in slanted channels according to Masterforex-V Trading System.
Points of opening and closing deals in slanted channels according to J. Murphy
In his “Technical analysis of future markets: theory and practice”, J. Murphy recommends for opening deals in slanted channels to start from the 3rd (!) recoil towards the direction of the trend in force.
J. Murphy considers that the trend line can be successfully used in solving a series of problems - when the third point is detected and the tendency type is determined. As regards this tendency, one of the basic principles is the following. The tendency under development is tending to continuer its movement. Consequently, as soon as the tendency takes a certain tempo and the trend line takes up position at a certain angle, as a rule, this angle is remaining the same during the tendency further development. Under these conditions, the trend line does permit determining corrective phase extremes. And what is more important, the trend line can indicate possible changes in the tendency.
Let us suppose that we deal with an ascending tendency. In this case, corrective (or intermediate) recessions either approach the ascending trend line very close or even touch it. Under the condition of an ascending trend, the future trader is planning to buy at recessions. Therefore, the trend line plays the role of the support edge (limit) below the market. This border can be used as a zone of “buy” (purchase). If the tendency is descending, the trend line can be used as a level of resistance for “sell”.
Until there does not occur a radical turn in the trend line dynamics, the trend line can serve for detecting “buy” or “sell” zones. However, in Charts 4.7a and 4.7b (see below), at the point #9 such turn does take place. It is the signal for liquidating all positions opened towards the previous tendency direction. Often the breaking through the trend line is the first evidence of a radical turn in the tendency type.
Chart 4.7a. (For view the picture see notes in end of article)
As soon as the trend ascending line is established (fixed), one can use the subsequent recessions, which reach the trend line, as zones of “buy”. In this chart, the points ##5 and 7 can serve for opening new positions - or subsidiary long ones. The trend line breaking at the point #9 indicates a cardinal change in the tendency character – probably, the tendency has become descending. Consequently, at the point #9 all long positions must be liquidated.
Chart 4.7b (For view the picture see notes in end of article)
The points ##5 and 7 can be used as zones of “sell”. The trend line breaking (the point #9) testifies the possibility of the tendency turn towards the ascendance.
Criticism of J. Murphy’s technique of opening/closing deals in slanted channels
J. Murphy recommends closing all long positions when the slanted channel level is broken through. However, this author has not explained the following aspect:
What is the difference between the false and true breaking through slanted channels?
In order to understand why a trader who works according to J. Murphy’s technique will lose his deposit for sure, one must look at Chart 2.14, copied from the book by E. Neiman. That is, there occur false breakouts not only at the encircled point but also to the left and right of it.
Chart 2.14 (For view the picture see notes in end of article)
Losses will be inevitable if one works in this channel according to J. Murphy’s technique. J. Murphy’s erroneous advices are the following.
1. One must open a deal only starting from the 3rd point of contact – i.e., the recoil towards the trend in force. To the left from the circle, there were three touches. Did J. Murphy imply these contacts when he recommended opening deals to start from the 3rd recoil? Probably, one can regard these three recoils as a single touch. Hence, what’s about the 3rd contact? That is, where is the recoil from the level of support in the ascending slanted channel?
2. In this chart, the recoil from the channel lowest border (the point of the deal opening) differs from the breaking through the channel lowest border. Under the condition of the breaking through the lowest border, J. Murphy recommends closing all positions. For instance, I have detected 7(!) breakings through the slanted channel lowest border. Notwithstanding J. Murphy recommendations to close all positions, the currency is keeping on moving along the ascending trend.
3. Why does J. Murphy recommend closing the positions after breaking through the slanted channel lowest border in the case of the ascending trend? Probably, it would be more reasonable to close deals in the vicinity to the ascending channel upper border. However, the problem is the following. J. Murphy designates the trend ascending channel just with one line. That is, according to his theory of the trend channel, the ascending trend upper border does not exist (the picture of the channel corridor is copied from the book by E. Neiman).
4. J. Murphy advices are in ev
When designing a website, logo or other business document, so much attention is placed on the content or message you want to convey. Could you be missing one other important factor? COLOR...Color is a powerful form of non-verbal communication. Color can motivate, create emotion, show personality, set a mood and even create negativity.What Colors Should You Choose?With so many colors to choose from, how do you narrow done the choices? The first step is to determine who your target market will be. Are you targeting women, men, young, old, certain cultures? Secondly, decide what mood you want to create. Are you striving for excitement, comfort, harmony, urgency?Once you have determined those two factors, it’s time to explore what people like and what emotional and psychological responses colors create.Women- Tend to prefer cool, soft colors as well as highlight color because it provides lots of energy, vibrancy and playfulness.Men- Prefer brighter shades overall but blue is a very strong preference followed by greens. Men can often feel insulted when presented with “feminine colors”.Children - Pastel blue and pink are great if the target is parents of infants. Toddlers love bright primary colors. Young girls love soft pastels while young boys will be attracted to primary shades of blue, red and green.Cultural- If you have a global market, cultural interpretation of color is very important. Chinese culture finds yellow to be sacred and white to be the color of death. In many cultures purple is considered royal but can also mean death in So. America.The Impression of ColorsColors are broken into three categories; Warm, Cool and Neutral. Let’s looks at the positive meaning of some colors.WarmRed: The color of love, heat, excitement, urgency, passion. Red is often associated with food because it stimulates the appetite. Red also creates a faster heart beat and breathing.Pink: All things feminine come to mind such as sweet, delicate, nice, innocent.Yellow: Warm feelings like happiness, cheerfulness, joy, and remembrance such as the yellow ribbon for soldiers.Orange: This is a good highlight color because it provides lots of energy, vibrancy and playfulness.<
Until there does not occur a radical turn in the trend line dynamics, the trend line can serve for detecting “buy” or “sell” zones. However, in Charts 4.7a and 4.7b (see below), at the point #9 such turn does take place. It is the signal for liquidating all positions opened towards the previous tendency direction. Often the breaking through the trend line is the first evidence of a radical turn in the tendency type.
Chart 4.7a. (For view the picture see notes in end of article)
As soon as the trend ascending line is established (fixed), one can use the subsequent recessions, which reach the trend line, as zones of “buy”. In this chart, the points ##5 and 7 can serve for opening new positions - or subsidiary long ones. The trend line breaking at the point #9 indicates a cardinal change in the tendency character – probably, the tendency has become descending. Consequently, at the point #9 all long positions must be liquidated.
Chart 4.7b (For view the picture see notes in end of article)
The points ##5 and 7 can be used as zones of “sell”. The trend line breaking (the point #9) testifies the possibility of the tendency turn towards the ascendance.
Criticism of J. Murphy’s technique of opening/closing deals in slanted channels
J. Murphy recommends closing all long positions when the slanted channel level is broken through. However, this author has not explained the following aspect:
What is the difference between the false and true breaking through slanted channels?
In order to understand why a trader who works according to J. Murphy’s technique will lose his deposit for sure, one must look at Chart 2.14, copied from the book by E. Neiman. That is, there occur false breakouts not only at the encircled point but also to the left and right of it.
Chart 2.14 (For view the picture see notes in end of article)
Losses will be inevitable if one works in this channel according to J. Murphy’s technique. J. Murphy’s erroneous advices are the following.
1. One must open a deal only starting from the 3rd point of contact – i.e., the recoil towards the trend in force. To the left from the circle, there were three touches. Did J. Murphy imply these contacts when he recommended opening deals to start from the 3rd recoil? Probably, one can regard these three recoils as a single touch. Hence, what’s about the 3rd contact? That is, where is the recoil from the level of support in the ascending slanted channel?
2. In this chart, the recoil from the channel lowest border (the point of the deal opening) differs from the breaking through the channel lowest border. Under the condition of the breaking through the lowest border, J. Murphy recommends closing all positions. For instance, I have detected 7(!) breakings through the slanted channel lowest border. Notwithstanding J. Murphy recommendations to close all positions, the currency is keeping on moving along the ascending trend.
3. Why does J. Murphy recommend closing the positions after breaking through the slanted channel lowest border in the case of the ascending trend? Probably, it would be more reasonable to close deals in the vicinity to the ascending channel upper border. However, the problem is the following. J. Murphy designates the trend ascending channel just with one line. That is, according to his theory of the trend channel, the ascending trend upper border does not exist (the picture of the channel corridor is copied from the book by E. Neiman).
4. J. Murphy advices are in ev
Your ability to develop an energizing vision for your team or organization determines whether you're be a high performing leader or a Technomanager, technician, supervisor, project manager, administrator, or bureaucrat. At the heart of leading others is your ability to develop and communicate a clear and compelling picture of your team or organization's preferred future.Within two months of joining forces in 1981, Art McNeil and I developed the first of many visions for The Achieve Group (a training and consulting we founded and eventually sold to California-based Zenger Miller Inc.) It became a yearly ritual for us, and later our team of Achievers to review and revise our vision (and values) and then set that year's strategies, goals, plans, and budgets. In 1983, we collaborated with Tom Peters' to develop "Toward Excellence" an executive action planning process. We went on to help hundreds of management teams (some much more successfully then others) in many countries establish their vision, values, and purpose and then put together implementation strategies and build the leadership skills that brought it all to life. These rich experiences showed that a powerful team or organization vision:• creates organizational energy and enthusiasm for change and improvement.• provides an overarching "big picture" direction, focus, and passion to strategies, budgets, plans, systems, processes, and technological change.• focuses and builds teams much more effectively than wilderness experiences, simulations, or group exercises• counterbalances the pain, suffering, and helplessness that downsizing, disaster, or other such depressing activities usually bring.• vaccinates people against the Victimitis Virus and Pessimism Plague by giving them a sense of hopefulness and self-determination.• sets up a "magnetic force" that will attract the people and "lucky breaks" needed to move toward the vision.• repels those people who don't want to be any part of anything so "unrealistic", "fanciful", "stupid", etc.• boosts everyone's "psychic pay" and make them feel like winners who are part of an organization that's going somewhere exciting.Organization Pathways and PitfallsHighly effective leaders take many different pathways to help teams and people throughout their organization clarify or clearly see pict
Chart 4.7b (For view the picture see notes in end of article)
The points ##5 and 7 can be used as zones of “sell”. The trend line breaking (the point #9) testifies the possibility of the tendency turn towards the ascendance.
Criticism of J. Murphy’s technique of opening/closing deals in slanted channels
J. Murphy recommends closing all long positions when the slanted channel level is broken through. However, this author has not explained the following aspect:
What is the difference between the false and true breaking through slanted channels?
In order to understand why a trader who works according to J. Murphy’s technique will lose his deposit for sure, one must look at Chart 2.14, copied from the book by E. Neiman. That is, there occur false breakouts not only at the encircled point but also to the left and right of it.
Chart 2.14 (For view the picture see notes in end of article)
Losses will be inevitable if one works in this channel according to J. Murphy’s technique. J. Murphy’s erroneous advices are the following.
1. One must open a deal only starting from the 3rd point of contact – i.e., the recoil towards the trend in force. To the left from the circle, there were three touches. Did J. Murphy imply these contacts when he recommended opening deals to start from the 3rd recoil? Probably, one can regard these three recoils as a single touch. Hence, what’s about the 3rd contact? That is, where is the recoil from the level of support in the ascending slanted channel?
2. In this chart, the recoil from the channel lowest border (the point of the deal opening) differs from the breaking through the channel lowest border. Under the condition of the breaking through the lowest border, J. Murphy recommends closing all positions. For instance, I have detected 7(!) breakings through the slanted channel lowest border. Notwithstanding J. Murphy recommendations to close all positions, the currency is keeping on moving along the ascending trend.
3. Why does J. Murphy recommend closing the positions after breaking through the slanted channel lowest border in the case of the ascending trend? Probably, it would be more reasonable to close deals in the vicinity to the ascending channel upper border. However, the problem is the following. J. Murphy designates the trend ascending channel just with one line. That is, according to his theory of the trend channel, the ascending trend upper border does not exist (the picture of the channel corridor is copied from the book by E. Neiman).
4. J. Murphy advices are in ev
Building a business is like constructing a house. You want to build your home on a solid foundation and then make it your own by personalizing it with your strengths, maybe interior design, painting or decorating, and outsource the areas that are your weaknesses, perhaps plumbing, roofing or electrical wiring. In the same way you want to build your business around your strengths and where you have weaknesses you should look into outsourcing work. So what areas are you strongest in? What are your business’s strengths? Sometime these two things start off being one and the same, but as you add more to the mix of your business than just you, the business develops its own strengths and the business should be built around those.As a business owner one of the very first things you should do is remove yourself from the role of the technician, or craftsman, and put yourself into the role of CEO, or business builder. What are you, your people and your assets really good at?Start with your natural gifts.What is it that you seem to be able to do effortlessly, without even thinking, and always seem to do better than most people? What do people compliment you on for having an uncanny knack at? Most people can easily understand natural physical talents like running, jumping, singing, and dancing. However, business strengths are more often intangible like problem solving, strategic thinking, relationship building, speaking, sales, number crunching, deal making, or finding and motivating the right people. Whatever your business strengths are, make a list of them and put it on a post it note on your desk with a header saying – Remember to focus on your strengths. We are raised and taught to focus primarily on and fix our weaknesses, but this is often a waste of time. Getting too caught up in our weaknesses leaves us with too little time left over to focus on our strengths and on cultivating them further. It is your job as a business owner to cultivate self knowledge of and enhance, your mental talents. We are all different and there are some things that you are just never going to be good at, so rather than beating yourself up about your lack of fortune in one area, start spending more time doing what you are best at. It is more fun and more productive. Next, who else in your business has natural gifts that tie in with your company’s valu
2. In this chart, the recoil from the channel lowest border (the point of the deal opening) differs from the breaking through the channel lowest border. Under the condition of the breaking through the lowest border, J. Murphy recommends closing all positions. For instance, I have detected 7(!) breakings through the slanted channel lowest border. Notwithstanding J. Murphy recommendations to close all positions, the currency is keeping on moving along the ascending trend.
3. Why does J. Murphy recommend closing the positions after breaking through the slanted channel lowest border in the case of the ascending trend? Probably, it would be more reasonable to close deals in the vicinity to the ascending channel upper border. However, the problem is the following. J. Murphy designates the trend ascending channel just with one line. That is, according to his theory of the trend channel, the ascending trend upper border does not exist (the picture of the channel corridor is copied from the book by E. Neiman).
4. J. Murphy advices are in evident contradiction with Elliot’s theory. According to the latter, the 3rd point of the trend recoil is the trend 5th wave – i.e., the point where begins the market backward movement.
Taking all these specificities into account, it would be amazing to notice the importance attached by J. Murphy to the 3rd check point in the slanted channel.
After detection of the 3rd point and determination of the tendency character, the trader can successfully use the trend line in solving a series of problems. One of the tendency basic principles is the following. A tendency under development is tending towards continuing its movement. However, at the same very page in his book, J. Murphy presents a chart that cardinally refutes his own statements.
In Charts 4.7a and 4.7b, at the point #9 such a turn does occur. It is a signal for liquidating all positions opened towards the previous tendency direction.
For pity, J. Murphy does not explain either these contradictions or the ones enumerated below.
1. As regards a point in the chart, he writes that all positions opened towards the previous tendency must be liquidated. However, further he writes about the same point that long positions must be closed.
2. Why should one at first close long positions and then short ones?
3. Was a long position opened at the point #5 (the 3rd point in the slanted channel)?
4. What does the following phrase mean: the point #9 testifies the possibility of the turn in tendency? That is, one implies the turn or the possibility of the turn. This aspect is very important for the trader. Is it worthwhile to keep short deals open? Must one close all deals and remain out of the market? Otherwise, maybe one should open new deals towards the new trend possible development.
5. What is the difference between the point #9, where all positions must be liquidated, and the false breaking through the level? One must compare the charts 2.14 and 4.9 from the books by E. Neiman and J. Murphy, respectively. Sometimes there occurs the breaking through the trend line several times within one day (see the chart 4.9). This confronts analysts with the dilemma. Must one preserve the initial trend line if it is still correct? Or is it better to draw a new line? A compromise may be possible. A new dotted line is drawn, the trend initial line being preserved. Later on one will see which of the lines is more correct.
6. The most unexpected aspect is the following. J. Murphy confesses that he does not know the difference between the true and false breakings through the slanted channel.
J. Murphy is not sure what one must do with insufficient breakings through the trend line. He mentions that prices can break through the trend line during a day. However, at the moment of closing the initial pattern becomes developed again. Consequently, an analyst cannot be sure whether the breaking has really happened (see Chart 4.9). Must the trend new line be drawn with taking into account new data – under the condition that the trend line small disturbance is evidently of the temporal or occasional nature? In Chart 4.9, this situation is depicted. During the day prices “fell below” the trend ascending line. However, at the moment of trading closing they were above this line again. Is it necessary to draw the trend line anew? For pity, there is no unequivocal answer that could fit for all cases. Sometimes the breaking can be neglected – especially if the market further movement confirms that the trend initial line was true. As it is already mentioned above, sometimes a kind of compromise is required. An analyst can make use of two trend lines simultaneously: the trend initial line (the solid one) and the trend new line (the dotted one). There can develop the following situation. The trend line breaking can be relatively insubstantial and occur just within a day. If at the moment of closing the prices have reached a value above the trend line again, the analyst can neglect this breaking. The use still can be made of the trend initial line. As well as in many other areas of the market analysis, best of all is to rely on the experience and intuition. In many doubtful situations, they are the best advisers.
Comments. J. Murphy has become confused when dealing with slanted channel breakings. Respectively, he cannot explain the problem to readers. Really, what does it mean “one can neglect this breaking – especially if the market further movement confirms that the trend initial line is true? At the same time, one must liquidate all long positions at the point #9 in Chart 4.7a.
E. Neiman considers the breaking through the slanted channel levels along the trend to be the most powerful signal for the deal opening (In the case of the trend ascending channel, it is the breaking through the upper slanted level. Respectively, in the case of the trend descending channel, it is the breaking through the lower slanted level).
Let us trace the consequences of this approach in the real trade.
E. Neiman explains the essence of his technique in the following way. The technique of giving analysis to lines of resistance and support helps traders to follow changes in the tendency – i.e., its reversal or intensificat
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