Joe Ross
Active member
- Messages
- 192
- Likes
- 36
Hey Joe! Have you ever heard about doing spreads with a point and figure chart?
Yes! Here is a true story I heard from my friend Kent Calhoun: “There was a Dallas trader who had made his living for thirty years by trading a point and figure spread chart, the wheat minus the corn. When wheat fell within fifty cents of corn he began buying positions of wheat and selling corn on technical rever¬sals. Whenever wheat fell under the price of corn, or the grains became a backwardation market, he got his home mortgage, and borrowed money to make the profits he would lose in some years. (A backwardation market has cash higher priced than the futures market.) His point and figure chart, the best spread chart, had each block worth 2 cents and used a three block reversal. His chart was a continuous huge roll of KE chart paper over eighty feet long in 1980 and contained every trade he had ever made over the last thirty years.”
Yes! Here is a true story I heard from my friend Kent Calhoun: “There was a Dallas trader who had made his living for thirty years by trading a point and figure spread chart, the wheat minus the corn. When wheat fell within fifty cents of corn he began buying positions of wheat and selling corn on technical rever¬sals. Whenever wheat fell under the price of corn, or the grains became a backwardation market, he got his home mortgage, and borrowed money to make the profits he would lose in some years. (A backwardation market has cash higher priced than the futures market.) His point and figure chart, the best spread chart, had each block worth 2 cents and used a three block reversal. His chart was a continuous huge roll of KE chart paper over eighty feet long in 1980 and contained every trade he had ever made over the last thirty years.”
