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Here's another triangle trade fresh off this morning's 2 min s&p
-----Original Message-----
From: Earl Adamy <eadamy@xxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Sunday, February 07, 1999 5:30 PM
Subject: Re: The leading edge
>The s&p is among the toughest to trade because of the head fakes you
>mention. BUT ... a trader who studies the price action can anticipate many
>of these head fakes and exercise the patience required to trade let the
>other guys take the jabs. The examples below are taken from my trading
notes
>on triangles which I just completed over the weekend - the shots are from
>daily silver but time frame or commodity doesn't matter because these
things
>are all over the place. You can see numerous examples of false upside and
>downside breakouts along with two patterns which failed and one pattern
>which succeeded. The guys in the pits and the big traders don't make any
>money if price doesn't move around so they move it in whichever direction
>the most orders are to be found. I frequently see triangles like these in
>the 2 minute s&p. I watch them punch the price up to trigger the buy stops
>and then watch it pull back. It's like a multi-act play and the final act
>before the curtain rings down is to suck in all the contracts they can by
>clearing the sell stops which means a final run to the bottom before
>blowout. I don't buy the breakouts, I buy that (hopefully) final run to the
>bottom when the stops are getting cleared. And if the whole breakout fails
I
>sell the break back through the slope. Takes a line drawing tool and zip
>indicators.
>
>Earl
>
>-----Original Message-----
>From: BrentinUtahsDixie <brente@xxxxxxxxxxxx>
>To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>Date: Sunday, February 07, 1999 4:54 PM
>Subject: Re: The leading edge
>
>
>>to think of the markets as an over sized game of Simon Says. The market
>>makers are always trying to get you to jump in the wrong direction before
>>they say; "Simon Says". If they get you to fall for a head fake they have
>>done their job and made their money. After writing a huge number of Show
Me
>>studies to identify every kind of bar, I came to the realization one day
>>that trading the markets is like an inexperienced pool player walking into
>a
>>pool hall one day to play pool with a room full of pool sharks for money.
>>The players here(in the markets) have had a very long time to get expert
at
>>taking you to the cleaners.
>
>
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