The Simplest Trading Method In The World

This is a discussion on The Simplest Trading Method In The World within the First Steps forums, part of the Reception category; Fascinating thread – a system so simple that you’d be too busy trying to think of something more complicated to ...

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Old Jan 28, 2011, 3:03pm   #31
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Re: The Simplest Trading Method In The World

Fascinating thread – a system so simple that you’d be too busy trying to think of something more complicated to notice that it’s right there staring you in the face!

I’ve done some quick, visual back-testing of this on various charts and it seems to be spot-on! It’s so easy to spot once you’re ‘thinking simple’. I’m now seeing loads of support and resistance at, or very close to, big round-numbered prices, and some pretty clear price action where the big reversals take place – You don’t even need to start drawing on the chart – it’s all just there staring straight back at you.

As Trader Dante points out, S/R levels aren’t always exactly at the big rounded-numbers, but what I have observed is that, mostly, S/R occurs sufficiently close to those ‘rounded’ prices that you could easily consider those prices as the centre-points for a slightly wider S/R ‘zone’ in which to look for definitive price action.

I’m not one for buying into the concept of there being a ‘holy grail’, but this is as close as anything has come to confirming that such a thing could exist!

Thanks to Pazienza for sharing!
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Old Jan 28, 2011, 3:10pm   #32
 
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Re: The Simplest Trading Method In The World

Get in quick then Mitch - 1300 S&P is just around the corner...
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Old Jan 28, 2011, 3:48pm   #33
 
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Re: The Simplest Trading Method In The World

I may be new here, but this is an epic post! Keep em comin'

I am very much a numbers guy, so I look at these charts and just see so many patterns. I guess one of my biggest questions, and one that I imagine has many answers, is what makes a stock price change? I see the trades rolling through above/below/at the market/bid/ask price, but who says "this is the price of that stock"? Is there some dude (market maker or specialist) or a computer or a mix of the latest prices based on volume at each price point? I don't mean to hijack your thread, I'm just trying to understand the basis for it.
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Old Jan 28, 2011, 5:36pm   #34
 
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Re: The Simplest Trading Method In The World

Quote:
Originally Posted by DionysusToast View Post
Get in quick then Mitch - 1300 S&P is just around the corner...
Not for long it's not. Time to load up short next week.
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Old Jan 28, 2011, 6:12pm   #35
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Re: The Simplest Trading Method In The World

Quote:
Originally Posted by Pazienza
I've been encouraged to contribute something useful instead of just f***ing around the whole time.
WTF is this? DON'T DO IT, MAN!!!

OK, who is the pm'ing lulz killer?

Seeing who the OP was I popped in expecting lulz up the ****. Instead I find some good stuff and very little fluff.
Might as well put Mr. Pazienza on ignore now.

Peter
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Thanks! The following members like this post: timsk , Pazienza
Old Jan 28, 2011, 9:34pm   #36
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Re: The Simplest Trading Method In The World

Quote:
Originally Posted by Pazienza View Post

Just a quick detour. There is a member of this site who has something like "If I get to 3500 posts, somebody shoot me" as his signature.
So glad I could assist with your thread.

This has been an interesting read so far. Although I trade differently from this, the two aspects of your approach I like are that you keep it simple, and attempt to benefit from a human bias, i.e. regarding round numbers as important.

Mind yer language tho -- do you think you're the Tony Montana of trading??
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Old Jan 28, 2011, 9:35pm   #37
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Re: The Simplest Trading Method In The World

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Originally Posted by trader_dante View Post
Not for long it's not. Time to load up short next week.
I think the Bernanke put strike has been moved up to 1250, or maybe higher.. will this thing ever move again??
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Old Jan 28, 2011, 10:37pm   #38
 
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Re: The Simplest Trading Method In The World

Quote:
Originally Posted by DionysusToast View Post
Get in quick then Mitch - 1300 S&P is just around the corner...
Wasn't that gorgeous today - I've not had a day like this for quite a while.
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Old Jan 28, 2011, 10:41pm   #39
 
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Re: The Simplest Trading Method In The World

Some lulz

Click the image to open in full size.
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Old Jan 28, 2011, 10:46pm   #40
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Re: The Simplest Trading Method In The World

i had best day of year so far

link for my days trading under this

http://www.trade2win.com/boards/t2w-...ml#post1405344
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