neil said:This has been around a long time but it might be better to ask if anyone has used it over a long period of time. And to ask yourself if it is so good then we should all be using it !
There is no holy grail...never said it was.. just pointing out that there are other trend indicators around apart from SMR's.
Bigbusiness
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I have also just bought the book. I don't buy many but was curious about what all the fuss was about. I will read it over Christmas. Had a brief skim and some of the ideas reminded me of jpwone's website.
Look at method 2 and method 2 revised in the techniques section here:-
http://212.38.89.86/spreads/
Look at method 2 and method 2 revised in the techniques section here:-
http://212.38.89.86/spreads/
rglenn said:
Smr's indicators are NOT that big of a deal. You do not have to subscribe to them. Read my previous posts about how you can derive indicators that look like Smr's. With that said, you can just throw a moving average on your favourite RSI or CCI. You can use a MACD or even a Stochastic. The big part of the book is the use of the ML. Also, taking profits at a percentage's of margin is something that can help any ones trading. These two things differentiate it from a plane ole trending system. Furthermore, it does not matter what you are using them. Forex or equities, futures----the rules will work. Especially, the against the trend news related spike rule. If you are using Tradestation or Cqg I can tell you how to get lines that look just like his in the Book without subscribing to anything. Just post or pm me. Sorry, I am not that familiar with chart packages other than these (although I know Ensign can do a simple Macd as well and any package that does indicator on an indicator will work).
Hi All,
Could the information from the book be applied using Sharescope's EOD data? (ie to produce the "three lines"). I use Sharescope (EOD) to swing/position trade individual stocks and indices and use FXCM charts to day trade Forex.
Cheers,
Mick
Could the information from the book be applied using Sharescope's EOD data? (ie to produce the "three lines"). I use Sharescope (EOD) to swing/position trade individual stocks and indices and use FXCM charts to day trade Forex.
Cheers,
Mick
I dont understand why everyone is having such a hard time with the 3 lines detailed in the book.
Page 26 describes how they are formulated.
The SL is basically the difference between a 3 period Simple Moving Average and a 10SMA.
The ML is a 16 period average of the SL.
The LL is the 50 period average of price.
Obviously Chick says you can use different period variations of this to suit your own trading style, but basically all this method does it to identify momentum direction with reasonable reliability and keep you out of chop.
Any successful trader is trying to trade with the trend - assuming you are not tradng spreads for single ticks, if you are a short term intraday trader or a multi-day swing trader - if you are capturing a move in a profitable trade whether that is on a micro-trend or a macro-trend we are all just trend traders with whatever timeframe we use as individuals.
so to answer neils comment of "ask yourself if it is so good then we should all be using it !" whether you know it or not, if you are a successful trader you are capturing the trend and are already using Chicks methodology in one form or another..
Page 26 describes how they are formulated.
The SL is basically the difference between a 3 period Simple Moving Average and a 10SMA.
The ML is a 16 period average of the SL.
The LL is the 50 period average of price.
Obviously Chick says you can use different period variations of this to suit your own trading style, but basically all this method does it to identify momentum direction with reasonable reliability and keep you out of chop.
Any successful trader is trying to trade with the trend - assuming you are not tradng spreads for single ticks, if you are a short term intraday trader or a multi-day swing trader - if you are capturing a move in a profitable trade whether that is on a micro-trend or a macro-trend we are all just trend traders with whatever timeframe we use as individuals.
so to answer neils comment of "ask yourself if it is so good then we should all be using it !" whether you know it or not, if you are a successful trader you are capturing the trend and are already using Chicks methodology in one form or another..
the main thing to remember with the methods described in the book is that Chick is trying to focus on price action alon. Forget what you know or think about the markets - forget overbought or oversold. One of his main points is that the market does not reward you any more for picking a top or bottom even though this is vastly harder than trading with an established trend.
Continuation is more likely than change.
Trying to pick tops could be likened to betting on a horse that consistently loses when you could bet on a horse (the trend) that consistently wins for the same odds.
Continuation is more likely than change.
Trying to pick tops could be likened to betting on a horse that consistently loses when you could bet on a horse (the trend) that consistently wins for the same odds.
Bigbusiness
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I have attached a spreadsheet for the daily DJIA with the indicators as talked about on this thread. It isn't that great, as I don't know how to get the lower indicators on an overlay chart, so I use a secondary axis. Hope there will be excel experts out there who can improve on this but it might help those that don't have a charting package that can replicate the indicators.
BigBusiness,
Hey, look back at the chart posted by MartinD or myself of the dow futures. You will see actual buy and sell signals. I do not know what on earth you did with this spreadsheet.
Rglenn,
He did NOT mention anything in his book about the indicators NOT working in the indexes. They work fine there. Seeing as he has made a living with these indicators for some 20++ years in the indexes. I am sure (based on my 10 years experience with them) you will be fine in the indexes or anywhere else.
Hey, look back at the chart posted by MartinD or myself of the dow futures. You will see actual buy and sell signals. I do not know what on earth you did with this spreadsheet.
Rglenn,
He did NOT mention anything in his book about the indicators NOT working in the indexes. They work fine there. Seeing as he has made a living with these indicators for some 20++ years in the indexes. I am sure (based on my 10 years experience with them) you will be fine in the indexes or anywhere else.
TGM
He didn't say the indicators didn't work he said they didn't work as well as with other markets- he did list them in categories he thought were best to the least if you care to have another look.
QUOTE=TGM]BigBusiness,
Hey, look back at the chart posted by MartinD or myself of the dow futures. You will see actual buy and sell signals. I do not know what on earth you did with this spreadsheet.
Rglenn,
He did NOT mention anything in his book about the indicators NOT working in the indexes. They work fine there. Seeing as he has made a living with these indicators for some 20++ years in the indexes. I am sure (based on my 10 years experience with them) you will be fine in the indexes or anywhere else.[/QUOTE]
He didn't say the indicators didn't work he said they didn't work as well as with other markets- he did list them in categories he thought were best to the least if you care to have another look.
QUOTE=TGM]BigBusiness,
Hey, look back at the chart posted by MartinD or myself of the dow futures. You will see actual buy and sell signals. I do not know what on earth you did with this spreadsheet.
Rglenn,
He did NOT mention anything in his book about the indicators NOT working in the indexes. They work fine there. Seeing as he has made a living with these indicators for some 20++ years in the indexes. I am sure (based on my 10 years experience with them) you will be fine in the indexes or anywhere else.[/QUOTE]
Ah, I see what you mean. One warning, markets come and go as far as how well anything works for them. All technical things work the best for trending markets!
Trending or "trendy" markets tend to have higher volatility and more importantly volume. I think it is more accurate to say "sometimes certain markets go through phases were you have to 'anticipate' more". The stock market is a good example of this. However, the example tends to apply to the downside signals in a downtrend and not to the upside signals in an uptrend. Other markets trend so heavily with the ML ---you could trade it alone.
Trending or "trendy" markets tend to have higher volatility and more importantly volume. I think it is more accurate to say "sometimes certain markets go through phases were you have to 'anticipate' more". The stock market is a good example of this. However, the example tends to apply to the downside signals in a downtrend and not to the upside signals in an uptrend. Other markets trend so heavily with the ML ---you could trade it alone.
Bigbusiness
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BigBusiness!! That looks fantastic! Hats off to you! When I went to pull up your excell spreadsheet file it was all screwed up! Could be my spreadsheet program? I could see the cells and all but something was not right. Your chart looks tip top! What program is that with? I do not recal Excell drawing candlestick charts?
Bigbusiness
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It is just with an old version of Excel. I think it is excel 2000. Hope it works for other people who download it.
Took me a while to work out how to do the charts but I found this website was a great help:-
http://www.peltiertech.com/Excel/Charts/StockChartPlus.html
There is also lots of information here:-
http://groups-beta.google.com/group/microsoft.public.excel.charting
Took me a while to work out how to do the charts but I found this website was a great help:-
http://www.peltiertech.com/Excel/Charts/StockChartPlus.html
There is also lots of information here:-
http://groups-beta.google.com/group/microsoft.public.excel.charting
The General
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I forecast that you haven't read the book.....
Am I right ? Am I? Am I?
Am I right ? Am I? Am I?
