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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.
At 11:04 PM 5/4/00 -0500, you wrote:
>Neal:
>
>Please translate and provide formulas:
>Double RePo and DRPO.
>I thought RePo was what happened when you missed payments on the car.
>Lionel Issen
>lissen@xxxxxxxxx
>----- Original Message -----
>From: Neal Hughes <neal@xxxxxxxxxxxxx>
>To: <metastock@xxxxxxxxxxxxx>
>Sent: Thursday, May 04, 2000 5:26 PM
>Subject: Re: Lessons Learned From Market Downturn
>
>
>>
>> Kent,
>>
>> The downturn was predicted by a Double-RePo signal on the
>> DOW chart during February.. As one trader said by email,
>> "you don't **** with a monthly DRPO".
>>
>> The signal was set-up in November, with the final confirmation
>> in February. I can post a URL if traders are interested in
>> further research.
>>
>> This same signal occurred in prior severe downturns of the market,
>> as well as predicting the run up of oil prices from about $12.00
>> to above 34.00 over the past year.. These signals are discussed
>> in real-time on discussion forum pages.
>>
>> As for re-entering, we've being doing that both short and long
>> depending on the day. There are both short and long trading
>> opportunities these days, it varies based on your trading
>> time-frame.
>>
>> -Neal.
>>
>>
>> At 01:38 PM 5/4/00 -0400, you wrote:
>> >"Yes, the markets really tanked. I'm just fortunate I followed my
>trusted
>> >rule of **always** selling when the _____price of the stock_____
>indicator
>> >went below
>> >_____stop that I entered when I bought the stock_____ level."
>> >
>> >"Frankly, I don't plan on re-entering those particular securities until
>the
>> >_____lump in my throat_____ indicator drops below _____knot in my
>> >stomach_____ again!"
>> >
>> >You can't trade the markets mechanically like you're asking unless you
>have
>> >a system that is a winner and if you had such a system, it would have
>told
>> >you when to sell and when to buy back in. Frankly, I think the bulk of
>the
>> >selling is done. If you listen to CNBC, you will hear that many fund
>> >managers are totally confused on the markets or have large cash
>positions.
>> >This is a good sign. In addition, cash is still coming into the markets
>in
>> >the form of savings. This means continued upward pressure. But probably
>> >not like it was during the last 6 months. I'm currently 115% long. Of
>> >course, historically that is a bad sign.
>> >
>> >Kent
>> >
>> >
>> >-----Original Message-----
>> >From: Nicholas Kormanik <nkormanik@xxxxxxxxxx>
>> >To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
>> >Date: Thursday, May 04, 2000 1:16 PM
>> >Subject: Lessons Learned From Market Downturn
>> >
>> >
>> >
>> >It's likely that over the past couple of months many here have had some
>> >important lessons reinforced.
>> >
>> >I'm hoping that some of you 'senior' members wouldn't mind filling in the
>> >following blank lines....
>> >
>> >"Yes, the markets really tanked. I'm just fortunate I followed my
>trusted
>> >rule of **always** selling when the _____A_____ indicator went below
>> >_____B_____ level."
>> >
>> >"Frankly, I don't plan on re-entering those particular securities until
>the
>> >_____C_____ indicator rises above _____D_____ again!"
>> >
>> >Thanks in advance for sharing your ideas. I hope some interesting and
>> >helpful discussion is generated from your input.
>> >
>> >I personally am still a 'freshman,' and continue to look for these
>answers.
>> >
>> >Nicholas
>> >
>> >
>> >
>>
>
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