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Paul Cote wrote:
>
> Dear Realtraders:
>
> I have been using the holy grail pattern and also am very interested in
> the anti pattern that is listed in LBR's streetsmarts book. I have
> replicated the indicator she describes, but it just doesn't quite work
> the way it works in the book. I am curious from others if you have
> tried or are using the anti type method-- what indicator you use and how
> do you trade it.
>
> thanks
>
> Paul Cote
Paul,
I've traded the "anti" for nearly two years and everyday I'll run a
study on it off of my daily charts. I use the fast stochastic with
values of 7 and 10 just like the book suggests; I don't use a smoothing
factor and it still works fine for me. On occasion I've also used 3 and
10 period simple moving averages. For me, the stochastic version
(momentum as opposed to price moving averages) works better because it
reacts a lot faster and enables me to capture an occasional nice move
out of a conjestion area.
That said, I should point out that this particular price pattern is one
of 12 that I employ and I have only taken ten signals it has given me in
the last 17 months. I trade it by placing an entry stop order one tick
below (above) the last bar of the pullback; for me the trades have
lasted from 1-3 days. One of the trades was taken by placing an order
to buy on the next open after the %K line ticked up. I have not
attempted to trade this pattern on anything other than daily charts.
Its been a profitable strategy for me but I look at it as just one more
tool in my "bag-of-tricks".
Pete
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