1-2-3-Formations and Ross Hooks

[Bigbusiness]

Thanks for your take on the hooks, ZDO, very enlightening.

The gimmee bars, which I believe Joe Ross advocates, are simply reversal bars which occur when prices touch the Bollinger bands. A full explanation can be obtained at the following site .........www.trading-naked.com/JoeRossGimmeeBarSetup.htm. I hope this link works but if not then just do a google search for gimmee bars and it should pop up.

Thanks again.

A good one on the YM today.

 

[charliechan]

A good one on the YM today.

surely, the bar after the bar marked #2 would have been #3 as it is the first to have a higher high and low.

a tte taken form this bar would have lost - if the stop was tight.

assuming my definitions are clear from the previous few pages.

 

[frugi]

Yes you are correct charliechan.

However if the bar after your #3 had made its high before taking out the low of the #3 (i.e. before a short entry trigger) then your bar would no longer be a #3 and you'd wait for the next bar's low to be taken out, which it wasn't, so then Bigbusiness' bar became the true #3 with a much friendlier OHLC pattern too. If you follow me

 

[charliechan]

Yes you are correct charliechan.

However if the bar after your #3 had made its high before taking out the low of the #3 (i.e. before a short entry trigger) then your bar would no longer be a #3 and you'd wait for the next bar's low to be taken out, which it wasn't, so then Bigbusiness' bar became the true #3. If you follow me

just about follow that!

why?

surely the point is to get a reversal going, so if it makes a higher first, then the low trigger should still be valid as it still represents the market has moved higher (from my original #3) before reversing to trigger entry??

not an expert on these things.

 

[Bigbusiness]

The first bar that broke just looked to soon to me. It might have worked and I would have missed the entry but there are lots of opportunities and I like to wait for the ones that I think are more likely to work. The entry I marked just looked more symmetrical to me. The number of bars from 1 to 2 and from 2 to 3 was more even and that is what I was looking for.

 

[frugi]

Nor am I an expert by any means charlie, and I see what you mean; however I think there are a number of ways of signalling an entry from this pattern, it's not a case of any of us being "right", comes down to preference really.

The way I look at them is to say (for a top) a bar is a potential #3 unless/until its high is taken out, in which case you then have to wait for the next bar to close to define your new potential #3 bar and thus entry point. After entry (assuming the high isn't taken out again, first) the bar then only becomes a confirmed #3 when the next bar(s) make a LL and LH.

My head is now spinning.

 

[charliechan]

cheers frugi - seems like a good rule there - dont take it until you are sure (as you can be) the market has stopped going up.

 

[charliechan]

The first bar that broke just looked to soon to me. It might have worked and I would have missed the entry but there are lots of opportunities and I like to wait for the ones that I think are more likely to work. The entry I marked just looked more symmetrical to me. The number of bars from 1 to 2 and from 2 to 3 was more even and that is what I was looking for.

lol - gut feel. cant beat it!!

justin mamis (the nature of risk - an excellent little book) calls it the freedom of not knowing!

 

[Naz]

One of my favouite things is to do the opposite of what everyone else thinks you should do.
You'd be amazed how much you can make doing this.I attach a nice hook on the SPY that just occured.

 

[Finlayson]

How much you can make doing what Naz?

 

[charliechan]

One of my favouite things is to do the opposite of what everyone else thinks you should do.
You'd be amazed how much you can make doing this.I attach a nice hook on the SPY that just occured.

smart alec


from my understanding, the entry would have been on the tte - 2-3rd bar following the actual hook.

with good trade management, a small profit would have been made - probably better if this was traded on a larger time frame (5m?), then the tte would have been just as prices started to rise and some profit would have been taken on the actual break out. this is the idea of the tte as far as i have read - and believe it or not is as old as the hills.

i could say more about this and what i understand joe to be saying on this one - but a little knowledge can be a dangerous thing in the wrong hands. hehehehe......

notice also that the hook prior to the one pointed out (assuming we kept to the 1m time frame) would have been successful also (assuming the correct emphasis is made on trade management of course - rather than set-ups)

hindsight is a wonderful thing!!

 

[cj12]

One of my favouite things is to do the opposite of what everyone else thinks you should do.
You'd be amazed how much you can make doing this.I attach a nice hook on the SPY that just occured.

Naz

I dont think you are on you own,in this approach,Its The work of Richard Wkckoff done back in the 1930s.I can show many charts that work like the chart you provided.I can also show charts where it has not worked.It is the same with the ross hook,I can show many charts that it has worked and many chart that it did not work.

CJ

 

[Stickyfingers]

Naz

It is the same with the ross hook,I can show many charts that it has worked and many chart that it did not work.

CJ

Schow me , yes ?

Stckf.

 

[charliechan]

Schow me , yes ?

Stckf.

look at the chart naz put up. there are some that worked, some that didnt.

 

[Stickyfingers]

OK I have been trading the 1-2-3 formations for a while. Not using the traders trick because on 30 min forex spot charts (sometimes 15 mins) it doesn't seem work. What I would like to know is if anyone has a filter for filtering out bad 1-2-3 formations or a way of trading only the best?
Interested in what someone said about counting number of bars in EACH LEG OF THE 1-2-3.
Anyway interested to hear any info that would help to avoid the 1-2-3's that fail. :cheesy:

You study the time before the one . In the past charts you can see what unfolds a great 1-2-3
with a long going distance , and which are just bluubs .

As Joe is a contrarian trader , the 1 schould be an outstanding and quick fall (downward). If it goes right back again (gimmee bar) then its powerfull .

Well , there is a lot to say so just study the time before the 1. Look at the formations and what
happens and try to make a law when things appear often and repeat .

Stckf.

 

[Stickyfingers]

A nice 1-2-3 TTE on the Dow. Stop below potential #3 point then trailed to low of previous bar -1 tick on each bar close once initial target met. Missed the top of the move but am chuffed with this all the same.

Might be a similar top later if I'm lucky.

@ commander - keen

... so when you study the time before 1 , you are able to identify the future. That is logical ,
because the 1 will be in the past after going through 123 , and where you have enterd .

I just saw the chart of the above guy . ( # 342 ) . A very nice enter . So good so far . But the
stops are like out a book for old women.

My stop and reverse was at the bottom of the second bar at the top : 10521 . I would have
reversed all my positions at this point . This means not only selling one or two contracts
from three . Rather going schort with all positions .

Then you look on the chart in # 345 how it go further .

 

[frugi]

But the stops are like out a book for old women.

You're not wrong there, I admit. Too tight and placed far too obviously. I might as well have sent out a cordial invitation to the market to bump me out of position before continuing up.

I've changed tack a little since then. Stop placement is a real art and well worth long, careful study.

 

[Stickyfingers]

Stop placement is a real art and well worth long, careful study.

... well , I realy do´nt study the stop in the far past , and do´nt bother about it .Only in the nearest time cause I wanted to püt my nose off the screen for a couple of hours or days . In the moment
I am thinking about it .

Is a stop so important ? I rather think , no .

I think it is more important to focus oneself on how the chart unfolds . And then I know when
a movement is finisched .

But I am working on it in the moment . Stop or something else is the question . I am rather
not used to stops cause I always switsched . Only in the nearest time . But sometimes I
get confused . It´s not so easy at it looks like .

So I pay a lot of attention on how things unfold .

Stckf.

 

[SOCRATES]

... well , I realy do´nt study the stop in the far past , and do´nt bother about it .Only in the nearest time cause I wanted to püt my nose off the screen for a couple of hours or days . In the moment
I am thinking about it .

Is a stop so important ? I rather think , no .

I think it is more important to focus oneself on how the chart unfolds . And then I know when
a movement is finisched .

But I am working on it in the moment . Stop or something else is the question . I am rather
not used to stops cause I always switsched . Only in the nearest time . But sometimes I
get confused . It´s not so easy at it looks like .

So I pay a lot of attention on how things unfold .


Stckf.

Yes quite . .....To spend a lot of time thinking about it and not doing it is never a good idea

 

[Stickyfingers]

Yes quite . .....To spend a lot of time thinking about it and not doing it is never a good idea

Yes , lerning by doing .

In the moment I am working in the middle and long timeframe . It takes a long time untill
something is finisched. So I just focus my experience out of the 5 Min. TF in the long
period frame .

Stckf.