'No indicators' revisited

[BBB]

Bracke - try here:

www.wintersinvestmentnetwork.com

All of the methods presented on this site are about as worthy as EW - which I understand is also covered - in some depth infact!

 

[qaza]

Not that I am a fan of any of this but didnt Jesse Livermore die penniless

he was from the FAR side

 

[bracke]

BBB

DARREN WINTERS!!!!!!!!!!!!!!!!!

What are you trying to do to me.

I don't know if that is the dark side but it would probably leave me on the penniless side.

Regards

bracke

 

[BBB]

Well Bracke - it was for those who want to learn more about EW. It's probably in his course material.

 

[a320]

This is a small example of where we're coming from.....
Make up your own minds.

This is from a chapter called Entry Techniques, it is not the full chapter, just some of it that you may be able to use:

"""I have read, as I am sure you have as well, a fair number of trading books. There are a lot of wonderful theories in them. However, I haven’t really read any books that gave you an idea of where to buy and sell.

My entry techniques are based around the following set-ups:

1. Buy a breakout of prior resistance.
2. Sell a breakout of prior support.
3. Sell into strength when a bear correction looks exhausted.
4. Buy into weakness when a bull correction looks exhausted.

There are 4 ticks for every full S&P500 point. There is no need to risk more than 6 ticks if you can execute your trade within 2-3 ticks of your decision point of entry. You will soon find out if you are right or wrong. This method calls for tight stops.


My exit techniques are based around the following set-ups:

1. Exit on a pre-set stop loss if the trade does not work immediately.
2. Exit on a break-even stop if the position initially goes into profit.
3. Exit when you feel momentum has died down.
4. Exit when your trailing stop has been hit on a profitable position

When you get into a trade you have to consider where you would get out if things went against you. This will be very straightforward but it will put a lot of effort on your part to pick the right entry in order to minimise your loss exposure. Patience is required. Liquidity is obviously another consideration. Trading the Dow futures outside hours can be a real eye-opener in liquidity. There are many times during the early hours of the morning where the Dow is so thinly traded that you will be pushed filling a “daily Dow” bet in £ 25.

The biggest edge you can have in the market from an entry-point of view is a thorough knowledge of chart patterns. The best thing you can do for yourself is to study intra-day charts of the market you want to trade. The odds of success on these kinds of entries are probably not more than 50/50. That is why you want to pick your entry very carefully, and have bags of patience for the right pattern to set up. Once a trend matures and has established itself the odds can be increased in your favour.

Patterns in the market is the result of the psychological forces at work, ie. greed and fear. When one side is up against the wall, the other side has won, and as they say in Wall Street, not only is it permitted to kick someone who is lying down, it is recommended. You have to learn to think like a trader if you want to become one.


What you must realize is that you must stay flexible to the slightest change in market sentiment to trade this way. You cannot afford to have a fixed view.

Nevertheless these are the things you must understand.

1.
Trending moves seldom make corrections to the main trend that last longer than 1-3 days. If you look at the daily chart of the move from March 2003 to July 2003, you will see that there are only a few cluster of 1-3 day corrections. However, even these days provide exellent trading opportunities. There are 78 5-minute bars in a trading day!

2.
Corrections seldom make a retrace of the prior primary movement that is greater than 61.8%; normally 50% or 38.2% is the order of the day or 1:1 with the last alternate wave of prior similar degree.

3.
Because corrections are fast they do not give you time to sit on your hands and wait for confirmation. Don’t procrastinate!

4.
If the correction to the main trend is failing, it will do so by signalling a failure, i.e., a double top or slightly lower top in a bear trend or a double bottom or slightly higher low in a bull trend. It could penetrate the double top or bottom and fail also.

5.
The market will normally create a base below or above where the failure is to occur. Your last resort is to trade the break point. If you can identify it higher or lower then all the better.

6.
When you identify this situation you can act with a tight stop loss, they won’t all work but when they do they will be well worthwhile.

7.
If you miss a turning point or a breakout trade you can also get in on the move by waiting for a correction on the 5-minute chart."""

as always...good luck

Sunseeker

 

[bracke]

BBB

Thank you but I'm sure you will understand if I wave that one away

Regards

bracke

 

[bracke]

a320

And that's a small sample!

It's a lot to take in, remember and apply

Thank you for the information.

Regards

bracke

 

[a320]

Yes Tom put a very small part on the boards....
I recommend you go through his posts, he mainly shows 1:1 and how they can be played. I'm a little more open on my charts about ratio's ect, but there's enough on these boards to get an understand the methods. It just takes a little digging.

CJ

 

[a320]

An example.....( Sun's)

Nothing like any other's EW doctrine... ignorance springs to mind again...

CJ

 

[SOCRATES]

There were finally ACTIONS today which had gone missing lately...

Thanks again for the tip on the tweezer bottom, SOCRATES; it got me in for the big rise from the beginning.

I would like to ask two things regarding today's NQ actions.

1. I made a mistake about a fake top . In the 10-minute chart as attached, I saw the 13:50pm doji as indicating the end of the 5 waves, illustrated by the pink lines in the attachment, and closed my long position. The next two bars seemed to confirm this, and I went short at the 14:20pm bar, highlighted by the orange line in the attachment. Obviously, this was a wrong decision; I covered with -0.5 points and went long again for the remaining of the up move. Did I overlook something or make some wrong assumptions which had lead to this wrong trade?

2. I remember Skim once said when watching the volume it is possible to know whether it is the retail or the big boy in charge. How may I do so? I believe knowing this will help to determine whether a high-volume bar represents a trading climax or not. For example, the 15:00pm bar in the attachment, indicated by the black line, looked like a potential buying climax to me, but the subsequent price actions indicated the opposite.

Thanks indeed.

I am sorry not to have replied earlier but I have been very busy with Star Chamber matters all day with technicicans tinkering with equipment. I presume your questions relating to the above are are directed to me, is that correct ?

 

[SOCRATES]

Setting the record straight.

Not that I am a fan of any of this but didnt Jesse Livermore die penniless

Jesse Livermore did not die penniless.

Jesse Livermore did not die, he shot himself when gripped by a period of grave depression.

I have it on good authority that his problems were threefold.

I can tell you this because in contradistinction to all of you I have active contacts and friends in the US mainland and elsewhere who are the offspring from players in his circle, who themselves are traders and continue the tradition, whereas all you who emptily see fit to criticise his achievements and indeed his memory are limited to reading secondhand opinions written in books as fictionalised biographies, or to be involved in malicious gossip, whether inadvertently or otherwise.

I am not going to confide in any of you, because I don't want to. Some matters are best left
private, especially as a mark of respect also to his son Paul, who is still alive, and lives on an island, who will be a recipient of a copy of this traffic tonight.

I expect you can now understand that I am in a position to know a lot more about all this than you do.

He was a totally honourable man in his day who fulfilled all his missions and honoured all his committments, which in this day and age in my experience is more than can be said for a lot of people.

That is all.

 

[Quercus]

Thanks for all that a320, and if that's too much for some to take in, then this artform is not for them!

 

[clylbw]

Hi SOCRATES,

I would be very grateful if you could tell me your opinion, but the questions were for anyone who would like to share his or her thoughts. Thanks really for asking.

 

[clylbw]

No heated arguments PLEASE

Like I said before, I have learnt a lot from this thread, which is among the best materials I have ever found about trading. However, the methods discussed here are obviously not for everyone. If you do not like them, please look elsewhere; there are plenty of choices at T2W.

To me, this thread has become the door to the Dark Side, and I have come to see many of you who have kindly offered your help as my great friends, although we may never have met. If this door were shut, It would be a great loss to me and other people alike who have started the journey towards the Dark Side, and I would really miss all my friends here.

So, PLEASE, keep the heated arguments away. As mentioned above, if you do not like the methods here, simply look elsewhere. Please respect the right of our similar-minded people to discuss our own approaches here.

 

[china white]

Clylbw, I second that.

I am very grateful to all dark siders for their discussion and ideas. i think this thread is excellent and very professional, and I'd luv to see it kept that way.

cheers all

 

[ford]

Like I said before, I have learnt a lot from this thread, which is among the best materials I have ever found about trading. However, the methods discussed here are obviously not for everyone. If you do not like them, please look elsewhere; there are plenty of choices at T2W.

To me, this thread has become the door to the Dark Side, and I have come to see many of you who have kindly offered your help as my great friends, although we may never have met. If this door were shut, It would be a great loss to me and other people alike who have started the journey towards the Dark Side, and I would really miss all my friends here.

So, PLEASE, keep the heated arguments away. As mentioned above, if you do not like the methods here, please look elsewhere. Please let our similar-minded people have the right to discuss our own approaches here.

Great post, agree completely. There are plenty of other threads to debate these frivalous points. I hate to sound like a kill joy but I want to make money, not post and read junk.

edit: Junk is such a strong word, I dont mean that, I mean offtopic / rivalry.

 

[Skimbleshanks]

And if everyone was paying attention to the wise words of a320, they would have been blissfully aware of a nice 1:1 on ES between 14:00 and 15:30. Nice one a320!

 

[a320]

Thanks Skim....


CJ

 

[ford]

Theres (was) a wolfewave too ;-)

 

[Bigbusiness]

This thread has been great. There is little talk about the standard indicators and as far as I am concerned it is good to read about any of the other methods used to trade. As long as there is nothing about the standard lagging indicators that so many other threads have talked about, this thread will remain my favourite within TTW.