Do not understand this strategy

[CashOutChick]

Hi
I am trying out something called the "ross hook" and I was reading the manuals written on this subject but I do not understand some concepts here.
What is the significance of the ross hook? does it indicate a change of trend? and why wait for the ross hook to enter a trade? why can't we just follow the 1-2-3 formation?
Thanks.

 

[DaxDestroyer]

Could you be a bit more specific, what you exactly want to know, please? Don't take it personal, but sometimes it is fruitful to reread the stuff 2 or 3 times

Cheers Carlos

 

[dbphoenix]

Hi
I am trying out something called the "ross hook" and I was reading the manuals written on this subject but I do not understand some concepts here.
What is the significance of the ross hook? does it indicate a change of trend? and why wait for the ross hook to enter a trade? why can't we just follow the 1-2-3 formation?
Thanks.

There's an entire thread on the subject: http://www.trade2win.com/boards/price-volume/13451-1-2-3-formations-ross-hooks.html

Knock yourself out

 

[CashOutChick]

Could you be a bit more specific, what you exactly want to know, please? Don't take it personal, but sometimes it is fruitful to reread the stuff 2 or 3 times

Cheers Carlos

For example, if the price is trending upwards and then I mark out the point 1, 2 & 3. Then i wait for another correction to mark out RH. Then what happens? Do I expect the price to continue upwards or downwards? I think downwards but I am not sure. In the "law of charts", there is a paragraph which says "buy on breakout of the point of the ross hook"...and the arrow points to the higher bar. Why buy at the highest bar?

The "TTE" manual is also confusing. There is instructions to "buy on violation of the high..." I have no idea what that means. Furthermore, it also instructs buying after point 2 and then after point RH. I am really confused! Please help. I am sorry, I am referring to the manuals directly, I hope you have the manuals with you to refer to!
C.

 

[DaxDestroyer]

For example, if the price is trending upwards and then I mark out the point 1, 2 & 3. Then i wait for another correction to mark out RH. Then what happens? Do I expect the price to continue upwards or downwards? I think downwards but I am not sure. In the "law of charts", there is a paragraph which says "buy on breakout of the point of the ross hook"...and the arrow points to the higher bar. Why buy at the highest bar?

The "TTE" manual is also confusing. There is instructions to "buy on violation of the high..." I have no idea what that means. Furthermore, it also instructs buying after point 2 and then after point RH. I am really confused! Please help. I am sorry, I am referring to the manuals directly, I hope you have the manuals with you to refer to!
C.

Ross Hooks as I understand them are used to stop you in. I don't like them because they are faded often. Means, yes, you buy a new high and sell a new low. But to be honest: I prefer not to trade them.

Carlos

 

[TWI]

why can't we just follow the 1-2-3 formation?

I think it is important to follow whatever works for you. Personally Ross Hooks never did anything for me. I think it is important to keep it simple and always be aware that a lot of people who write about technical analysis and trading couldn't trade there way out of a paper bag.

 

[FXSCALPER2]

I think it is important to follow whatever works for you. Personally Ross Hooks never did anything for me. I think it is important to keep it simple and always be aware that a lot of people who write about technical analysis and trading couldn't trade there way out of a paper bag.

Hear, hear! Too much BS in this business.

 

[Trader333]

Do not understand this strategy

Have you thought about asking Joe Ross himself as he does visit this site ?

Just be aware that if you do ask him you MUST start your request as follows:

Hey Joe ..........

This is important because we have never seen him answer any question from anyone that does not start with "Hey Joe"

 

[JTrader]

.......where u going with that.....

 

[fibonelli]

the RH often comes way way above any sensible re-entry level

 

[TWI]

trade there way out of a paper bag

Have to point out that it should have been "their" not "there" in my previous post. Sorry.

 

[BSD]

Paper bag traders are a bit different from you and me, must admit