E Chart Trade Question

Hello All,

First I would like to thank everyone for sharing your thoughts and ideas. Stumbled across this forum about a year ago and periodically review to see what others are doing. I am a former GW 1-5, Advanced, and RTP student that has had varying levels of success. Recently started reviewing all of the E Chart posts since the discussion began. Using the "E" appears to be working for many but IMHO it appears there is some subjectivity to how it is being used. For those that have been using for a while and find benefit when are you entering? I thought understood Darcy's setup:

- FP/HRFP on 55, 34, 21. My interpretation is that the 21 had to be closed, 34 would be close but forming, and 55 still forming
- E on 55, 34, 21, 10, 5, 3

If first bullet is close to being true (21 chart candle closed) then a 3 or 5 "E" could have signaled 4 to 7 candles ago by the time the 21 closes. How long is too long or does it matter (what is considered an old E)? Do you watch the 3 E form and candle close, 5 E form and candle close, 10 E form and candle close, then wait for 21 to close showing necessary FP/HRFP on 55, 34, 21 as well as E on these charts? I am struggling on when to enter. Are you only playing volatile moves that signal all charts at the same time? I see some say they are entering at the open but that surely is not enough time to have confidence that indicators will hold. I have been doing this long enough to see indicators provide a potential signal at the beginning of a candle open and then go away in a volatile stock by the time the candle closes (FP on 34MA in the first few minutes of trading that goes away by 10:00). Same question holds true for those that use E on big charts. A few appear to be having success with E on 144 and 89. Do you wait for the E chart candle to close confirming the E and then look at 144, 233, and/or Daily to see if FP/HRFP is forming, assume it will hold and then enter? Do you see the E on 144 and 89 and think "great, here it comes" and then wait for 233 or Daily to close FP/HRFP? I apologize for my first post being lengthy but I want to make sure I understand how this is being used to see if I can incorporate the knowledge into my own trading plan. Thank you again for sharing!

Bozey423

Anyone????

Bozey,

I am not the best person to answer simply because I do not currently use the "E" but here are my two cents. I too am unsure if folks are simply waiting until all "E" charts turn one color and then immediately enter, if you need a new E, or if they are waiting for the micro charts to close. If you know how to read all the charts all the time then you might be safe entering immediately when all small charts present the "E" providing that the bigger charts support the direction. Go back and look at Mtut's NFLX trade on 5/11 at the open under "E Chart Success" thread. Although I am a big chart trader I added NFLX to my watch list last week for a possible continuation bounce on the short charts. All indications were present that a continuation up, at least short term, was highly probable. Big gap up following earnings, Weekly & Monthly screaming up in short term, Daily and smaller charts consolidating sideways while indicators relieved over bought conditions. I expected to see a sideways to slight drift down possibly testing Daily 21MA and BBB areas on smaller charts. I also expected to see BB squeeze getting tighter as consolidation continued waiting for a breakout. Unfortunately I could not see the charts end of last week. Even if I did my signal to enter never presented itself other than understanding that a breakout was about to occur with a high probability of the next move being up. If I was an E trader trading for minutes to hours and had received confirmation on 5/11 at the open that all micro charts were now signaling an E then I would have no problems entering as big charts supported the direction. All I can say is go test and see. Sorry...

NCT

Bozey & NCT:

This is something I have struggled with for years, which is why I'm am still practicing options.
I have taken GW1-5 and have the CD's; one of my family member took all advanced classes.

Yet, I struggle with: The smaller "action" charts signal the move, then I flip to the decision and trend and I see contradiction. So, I second guess myself.

Or, the decision and trend signal the move; I wait for the pullback on an action but it never happens (Or, like Bozey asked it happens later...long after that signal and how long is too long.)

I just don't see charts lining up. The smaller E charts show the signal before the larger ones, which throws me off.

ie. NFLX today 5/13 on downward 3min chart at 13:51 but not ready on larger charts (so I missed it). Although, looking at 21 4pm with maybe a 55 bounce it could be ready for an upward move tomorrow...

Maybe, my learning is delayed because of my workday and chart focus. (I work in healthcare, but at times these charts make me sick.) You are all great encouragers. Thanks.

Chunk



Edited 2 time(s). Last edit at 05/13/2015 08:09PM by Chunk.

So in reading this I see that I am not the only one confused. I leave this remark solely to put it back at the top of the queue to solicit more replies from those with more success with the E idea, to potentially help those of us still struggling to understand.

Happy Thanksgiving everyone!