Gann/Rivalland swing trading

[beartrap]

Thought it might be worth starting up a new, separate thread specifically on Gann/Rivalland swing trading.

The Hang Seng gave a continuation buy signal overnight. Don't know whether anyone else reading this board is in this trade, but it's made a very satisfactory start.



If you've never looked at the HSI, you might want to do so. It swings very nicely. Check out the run up since May, for example.

It doesn't trade out of hours with the SBs, and you've got to be prepared to put in stops which would fire on big gap openings. Not for everyone, but I like this index.

beartrap

 

[jonray]

Thanks for that beartrap. Do you use rivallands method for shares as well? Would be interested in any interesting ones at the moment. Just made a bit on DIAGEO. Bought at 700p. Interesting one cos it had broke through the previous swing low so i could have been buying into a counter trend correction and on a hiding to nothing. Funny old game this.....

 

[shazbots]

Hi,

I had a number of books for christmas which I thought were exellent, except one ( master swing trader) I dont know why but I could not get on with it at all.

Wish I had choosen Rivallands book now, do you reccommend it, and have you read the master swing trader?

 

[beartrap]

Jonray

I don’t swing trade individual equities as such, and therefore don’t use MR’s method for stock trading. I’ve been using P&F on stocks for some time, though, and as a long-time interested reader of his IC column I naturally bought his book when it came out.

After a period of consideration / observation / backtesting, I started swing trading indices about a year ago. And I have been influenced to some extent by some of his thoughts on P&F on stocks.

Strangely enough, I also picked up DGE for my investment account at the end of last week. As you say, that would not have been a swing trade selection under Gann/ Rivalland as it had breached the previous swing low. From my point of view, within my framework, I was buying into a reversal following a (spread) triple top breakout.

And you?

Beartrap

 

[beartrap]

Shazbots

Rivalland presents an attractively logical approach. His modifications of one of W D Gann’s methods, in my own view, add significant value.

Whether his outlook would be appropriate for your aims, or appeal to your psychology, I couldn’t say. All I would venture is that if the book does ‘speak’ to you, it will be well worth the modest outlay.

I’ve never read the Farley book. I followed various bulletin board exchanges (not T2W at the time) after it was published and, based on discussions of his set-ups, doubted that it would suit.

I believe that some have found it helpful, however.

beartrap

 

[jonray]

Beartrap, Barclays and Prudential are a couple of prospects to look for breakouts soon, but it all depends on what the market as a whole does. I dont have the bottle to bet against the trend.

Do you know of any software that would pick up a 3 day counter-trend correction in the FTSE 100 stocks. I havent got time to keep sifting all the time.

 

[beartrap]

jonray

As I say, I don't actually swing trade individual equities and I'm afraid I don't know of software which will scan for 3-day counter-trend corrections.

If you're following Rivalland's modifications, you'll need to apply judgement to complex correction situations anyway. Which is not to say that a straightforward scan capability wouldn't be useful.

(Incidentally, if you've read Gann himself you'll know that even he didn't see the basic 3-day framework as inviolable.)

Personally, if I were going to use the methodology on individual stocks, I'd want to set up a short list of swing-tradeable candidates. As Rivalland points out, and as can readily be seen by studying a cross-section of charts, by no means all blue chips will be suitable. Anyone trading unsuitable stocks in this way would probably end up losing out.

With a shortlist of - say - 25 stocks, keeping track of entry set-ups probably shouldn't be too time consuming.

beartrap

 

[barjon]

jonray

I use something like MR's method on individual equities and, as
beartrap says, have a stable of stocks - mainly from ftse 100 -
which I watch constantly. One particularly good performer over
the last year or so has been AVZ, I posted about it some
weeks ago "Who's the King of the swingers?" in the uk shares
thread. Getting a few in your stable that perform like this and
excluding those that dodge about breaching swing highs/lows
every five minutes is the challenge.

good trading

jon

 

[Skimbleshanks]

You can use ShareScope to filter for three day counter-trend corrections on UK stocks, and TC2000 to scan for them on US stocks.

In ShareScope you would need to set up two scans - one which looks for three days of lower prices (ie a pullback in an up trend), and one which looks for three days of higher prices (ie a pullback in a down trend).

Alternatively, the FTSE 100 is only 100 charts, so set the Slideshow function to three seconds, and then it will automatically flip through all 100 stocks automatically and you can just 'eye' them - and hit the spacebar to stop the slideshow.

 

[beartrap]

You can use ShareScope to filter for three day counter-trend corrections on UK stocks, and TC2000 to scan for them on US stocks.

In ShareScope you would need to set up two scans - one which looks for three days of lower prices (ie a pullback in an up trend), and one which looks for three days of higher prices (ie a pullback in a down trend).

Skimbleshanks

The trouble is that, in Gann/Rivalland swing terms, we are looking for a correction which consists of 3 "down days" (or "up days" for a short entry), rather than 3 days where the close is lower (higher) than the previous day.

A "down day" would usually be one where both the high and the low is lower than the day before. (Special treatment applies to "outside days" - ie higher high and lower low, and "inside days" - lower high and higher low - are ignored.)

I'm not sure whether this could be programmed into Sharescope. I've certainly never tried!



beartrap