|
PureBytes Links
Trading Reference Links
|
Joe Ross is a trader(been around a long time) who teaches techniques based
solely on chart action. He actively discourages following indicators.
The "Ross Hook" is the core of his method, and is based on something like
what you are describing: For example, a low is set (call it 1), followed by
a retracement to "2". then a down leg. But the down-leg does not set a new
low. The low of this down leg is "3". If the next up-leg rises higher than
2, a trend is beginning, and the next swing-high of this up-leg is called
the Ross Hook.
Ross's main technique is to trade after the "3" described above, as the bars
start making higher highs, and also after the next low following the Ross
Hook, after the bars make higher highs.
Short trades are inverted.
I
I Rh
I I I
I
I 2 I
Y
I I X
I I
I I I I
I I
I I I I
I 3
1
In the above example (hopefully the email does not mess up the format!) the
first possible entry is at X, which takes out the high of the previous
retracement bar. Rh is the Ross Hook. The next entry is at Y, which takes
out the high of the previous retracement bar, approaching the Ross Hook.
And so on. he theory is that entering slightly ahead of the previous swing
high allows some margin in case the move over the "3" or the Rh is only
market makers gunning the stops. If th move to "3" or Rh is valid, you are
in early for the breakout and trend continuation. The Y entry is stronger
than the X entry as the trend is more confirmed (in theory!!).
There are many more details and patterns, which is how Ross fills many
books; but the pattern above is the essence of it. The chosen bar length is
anything above the threshold at which the stock/future has enough trading to
make decent patterns.
Basically puts a structure to that which you are approximately describing,
and that which most tape-reader type traders learn over time.
I hope this helps???
Dave Johnson
-----Original Message-----
From: MTG <mtg2@xxxxxxxxxxxxx>
To: Dave Johnson <dsj000@xxxxxxxxxxxxxx>
Date: Sunday, September 26, 1999 12:45 AM
Subject: Re: simple
>i havent a clue wht a ross method is would you mind sharing it???
>
>Dave Johnson wrote:
>
>> This sounds very much like a Ross method.
>>
>> Dave Johnson
>>
>> -----Original Message-----
>> From: MTG <mtg2@xxxxxxxxxxxxx>
>> To: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
>> Date: Sunday, September 26, 1999 12:40 AM
>> Subject: simple
>>
>> >I have been experimenting with a very simple system While it is true tht
>> >you have to monitor it it seems to give god results
>> >it is simpy buying higher bottom and selling lowere tops
>> >also in the three minute sp500 chart I have seen many times where it
>> >sets up wht i call a should in other words if the price is in an
>> >uptrend and it fails after a few bars to make a new high then i will
>> >sell short under one of the more recent bars and the price. far more
>> >often than not . just seems to fall rather dramatically
>> >
>> >if anyone is interested in this rather simple yet effective way of
>> >trading you can email me and i can put some charts together as an
>> >example
>> >i was told once tht most traders are too indicator dependent and tht if
>> >you learn how to read price action then it can be far more effetive
>> >anad it would work for a variety of markets
>> >
>
>
>
|