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My reference to "my trading manual" elicited a number of inquires regarding
availability. I have no plans to publish - this is just my own private
loose-leaf binder with charts of interesting, or unusual trading patterns
and whatever notes I feel are appropriate. Sometimes it's a new pattern
which appears promising. Sometimes a pattern which I trade which has failed
to work. Sometimes a whole series of patterns which define a market move. I
commend the practice of collecting and annotating charts to all as a great
learning and reference tool.
Also got some questions about why I would stand aside rather than move to
higher time frame. Quite simply it has to do with loss control. I can enter
a trade on a 1 minute spoo chart with about a point of risk. As I move up in
timeframe, the risk size gets bigger. Bottom line: because the market has
below average liquidity, I must take on more risk just so I can go wrestle
with the big players who can push the market around. No thanks!
Earl
>-----Original Message-----
>From: Earl Adamy <eadamy@xxxxxxxxxx>
>To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>Date: Friday, November 20, 1998 4:10 PM
>Subject: Re: Day Trading aspects.
>
>
>>The days of using pivots and fibs is not gone - the noise level has simply
>>risen to the point where it is far more difficult to use very short time
>>frame charts such as the 1 & 5 min which I use. Pivots and fibs are still
>>working fine in higher time frames. The noise, as indicated by the
>extremely
>>deep retracements and lack of follow-through on thrusts which show
>>exceptionally strong initial strength, is an indication of greater fear
and
>>lower liquidity. One has choice of standing aside until noise level
>>subsides, or using wider stops and higher time frames. Once my win/loss
>>ratio suddenly shifted for the worse, I evaluated the reasons, reached the
>>above conclusions, printed lots of screen shots for my trading manual, and
>>stood aside.
>>
>>Earl
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