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It's easier for me to help you if you ask a question.
What would you like to know?
Here is another example, on the 60-minute chart to the left.
http://www.fibtrader.com/charts/workshop-005294-000000.gif
On the right, the daily chart, you will see how SO
supported near $24.00 at a fib level that was predicted
in advance of price getting there. At that point, a
lower time-frame DRPO (60-minute) makes it an attractive
trade, predicting a quick move upward.
Good stuff! This trade is was submitted by a trader to
the proprietary client forums.
-Neal.
At 01:16 PM 5/5/00 GMT, you wrote:
>Please tell us more.
>
>J
>
>
>>From: Neal Hughes <neal@xxxxxxxxxxxxx>
>>Reply-To: metastock@xxxxxxxxxxxxx
>>To: metastock@xxxxxxxxxxxxx
>>Subject: Re: Lessons Learned - DRPO.
>>Date: Thu, 04 May 2000 22:15:52 -0700
>>
>>
>>Lionel,
>>
>>Hahaha! Good one!
>>
>>DRPO is a common abbreviation for Double-RePo.
>>
>>The Double-RePo is a specific type of double-bottom
>>or double-top. It requires thrust, a rather quick
>>double top/bottom formation etc, and has a specific
>>entry, stop-loss and profit objective.
>>
>>The pattern uses a displaced moving average, 3X3
>>(3-bar SMA displace 3 bars to the future) to define
>>the thrust. It's not a formula, in the same way
>>that a "triangle breakout" is not a formula.
>>
>>I'm happy to post some charts and answer questions
>>if anyone asks.. That's what I do almost on a daily
>>basis on some web forums.
>>
>>One of the reasons that this pattern is successful, is
>>that it predicts a panic in the opposite direction
>>of trend. How? Why? It requires thrust, and thrust
>>of a sufficient duration to get many traders on
>>the wrong side of the market, before the DRPO
>>is triggered. The tight double bottom/top formation
>>is just of just sufficient duration for more people to
>>get on the wrong side of the market before price makes a
>>clear move against them, and panic ensues.
>>
>>Does that mean it's perfect? Nothing is. But the
>>risk is pre-defined, and it's one of the most
>>successful DiNapoli patterns. I know of traders who
>>trade only this and two other DiNapoli patterns
>>very successfully. I trade these patterns as well
>>as regular "trend trades" with Fibonacci
>>entries/exits/stops.
>>
>>There are 9 such patterns that DiNapoli traders use,
>>these patterns over-ride trend. These are 9 patterns
>>developed over 30 years of trading, unlike what
>>you often see (these are not "hot new patterns of the
>>week"). They keep appearing, in different time-frames,
>>in stocks, futures, all liquid trading instruments.
>>
>>Here are some URLs for more info:-
>>http://www.fibtrader.com/djdr.html
>>
>>Here is a more recent DRPO discussion.
>>http://www.savagetrader.com/ezine/00224/dinapoli.html
>>
>>Regards,
>>-Neal.
>
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