|
PureBytes Links
Trading Reference Links
|
Hi Walter,
I started reading in the middle of your discussion. Can you please tell me
the name of the book and/or magazine article that discuss the shark-32
formation.
Thanks,
Dan
Dan Long
Dunnellon, FL 34433
e-mail: ad4hw@xxxxxxxxxxxxxxx
-----Original Message-----
From: Walter Lake <wlake@xxxxxxxxx>
To: metastock bulletin board <metastock@xxxxxxxxxxxxx>
Cc: Onno Goedknegt (Metastock list) <goedkneg@xxxxxx>
Date: Sunday, September 27, 1998 8:33 PM
Subject: Shark - 32
>Hi Onno
>
>I finally received the book that you suggested (I like it) , and have been
>thinking about volatility breakouts and short-term patterns.
>
>Mr. Downs' article in the October issue of TASC about "Shark - 32" is a
very
>interesting article and has lots of points we can talk about, expecially
>volatility. The term "Shark - 32" like other picturesque terms such as
>"Lizards", "Boomers", etc. doesn't tell us very much about the set-up
>pattern.
>
>Other writers have referred to it as a "double Inside Day or Bar" ("2xID").
>The generic term tells me more about the pattern. Other "2xID's" do not use
>the symmetry concept but cover the patterns where 2 Inside Days follow an
>Outside Day (OD). Often one ID will occupy 50% to 75% of the OD and the
>other ID will overlap areas of the OD not covered by the first ID. The
>"Shark - 32" is a specialized pattern in that it is an ID of an ID.
>
>Larry Williams, in "Definitive Guide to Futures Trading", covers many
>different combinations of triple bar ID patterns (pages 232+) in detail.
>
>The "Shark - 32" article covers the "hindsight" aspect of the pattern. It
>does not cover the "foresight" aspect. This is what we are faced with every
>day. The pattern is numbered Bar 2, Bar1 and Bar 0. But typically we are
>sitting at Bar 3, the day prior to the pattern developing. What good does a
>"hindsight" approach do us on Bar 3. On Day 3 we need a "foresight"
>approach.
>
>If a "2xID" is usually 2 ID's following an OD or Wide Range (WR) day then
>every time we see an OD or WR day we should be allert to the possibility of
>successive ID's. Therefore analysing set-up bars for likely follow-up
>patterns is the more common reality than scanning portfolios for
"hindsight"
>patterns.
>
>The analysis in the article provides an excellent template for the analysis
>of set-up patterns. This research will certainly certainly give us lots to
>talk about, because I see the "Shark -32" (2xID) pattern as a coil pattern
>resulting in a volatility breakout. Not only that, but it has the extra
>"excitement" of sudden reversals back across the range and breakouts.
>
>Mr. Downs' article, the TS code and Metastock code describe the "Shark -
32"
>indicator as being coloured dots or bars. Linda Bradford Raschke's chart at
>www.mrci.com/lbr/spstory/chart05.htm shows a binary to highlight set-up
>patterns at the bottom of the chart plus arrows. I prefer a binary overlaid
>on the chart without scale in grey.
>
>Let me know how you're doing with the volatility patterns and whether
you've
>got a copy of the magazine yet.
>
>Best wishes
>
>Walter
>
|