One Pattern - Many Names

trendie

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Having read extensively since getting serious about trading, it has occurred to me that I come across different names for what I consider the same pattern.
It could, of course, just be my lack of discernment, and my failure to see the subtleties.

I will start off with the 1-2-3 ! ( I have been re-reading Joe-Ross. I quite like his clarity and unambiguous definitions about trading. ).

I will post a little later, with charts.
 
My Paint-Shop-Pro still freezes my machine !! ( any good Paint packages I could get ? )

Anyway, in absence of a single picture, I will have to write a thousand words.

The 1-2-3 pattern is really a Triangle, isnt it ?
( 1 = High-point.
2 = Base of triangle.
3 = Lower-High. ( narrowing range )
The breach of the 2-point ( triangle-base ), is entry. )

Thus, 1-2-3 = Triangle.

If, we use the Joe-Ross of trading the Ross-Hook, which are "trend-confirmations", this is very reminiscent (sp) of Dow Theory of having a complete set of Lower-Low and Lower-High to confirm a new trend.

( the 1-2-3 is a trend-start, and the Ross-Hook, being a correction )

Either I am reading too much, and everything is getting blurred, or differetn writers are using differetn terms for the same thing.

Incidentally, my 70-point S/R journal, is essentially a Point-and-Figure strat, where I ignore time-frames, and follow only the price.
It is also a dynamic breakout-strategy, since the market needs to move more than a set value to trigger the S/R.

Weird, that all things seem to me to return to just a handful of terms.

Is it just me ?
 
Is a breakout trend-following ?

You identify the range, and imply the breach of it constitutes a trend, as you trade in the direction of the breach.
 
i think you need to get out more..

but on the face of it, i agree with all your points..

ergo, i need to get out more..

sheesh
 
trendie said:
My Paint-Shop-Pro still freezes my machine !! ( any good Paint packages I could get ? )

Anyway, in absence of a single picture, I will have to write a thousand words.

The 1-2-3 pattern is really a Triangle, isnt it ?
( 1 = High-point.
2 = Base of triangle.
3 = Lower-High. ( narrowing range )
The breach of the 2-point ( triangle-base ), is entry. )

Thus, 1-2-3 = Triangle.

If, we use the Joe-Ross of trading the Ross-Hook, which are "trend-confirmations", this is very reminiscent (sp) of Dow Theory of having a complete set of Lower-Low and Lower-High to confirm a new trend.

( the 1-2-3 is a trend-start, and the Ross-Hook, being a correction )

Either I am reading too much, and everything is getting blurred, or differetn writers are using differetn terms for the same thing.

Incidentally, my 70-point S/R journal, is essentially a Point-and-Figure strat, where I ignore time-frames, and follow only the price.
It is also a dynamic breakout-strategy, since the market needs to move more than a set value to trigger the S/R.

Weird, that all things seem to me to return to just a handful of terms.

Is it just me ?


No, what you're describing is an angle, not a triangle.

Dow Theory is more than just a lower low and a lower high. There are also the typical number of legs to consider as well as the correction lows/highs.

No, you're not necessarily reading too much, but, yes, different writers are using different terms for the same thing. There are only three basic strategies: breakouts, retracements, and reversals, all of which unfold within the context of trend or trendlessness or "line". A "lower high" can signal a retracement or a reversal. And while you can use somebody else's definitions, the only definitions that matter are those you determine for your own trading. Otherwise, you can end up being tumbled around in chop until you're broke.

"Clarity" is fine in the abstract (not to be self-contradictory), but it is practical only in the application. Someone else may have a crystal-clear definition of "congestion", but it may not bear scrutiny when tested against a significant sampling of charts. Someone else may define a line for you and define a breakout for you, but if your experience indicates that their definitions are inadequate for what you want to accomplish, then you have no choice but to study the charts yourself, put in the screen time, decide exactly what it is you want, look for it, test it, trade it, evaluate the results, then, if necessary, start again.

Trend, trendlessness.

Breakouts, retracements, reversals.

That's all there is.

And as for PSP, I've used it for years with no trouble. Try re-installling it.
 
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