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Ray
If you put up a 400 min chart of the USU9 you will see an example of the
pattern. Basically, it is Doji which splits a two-bar reversal pattern.
Yesterday saw the pattern set up the market and today it obliged. We have
an up bar. In the time frame concerned, it is not of much help to the day
trader, save only for when it makes a set-up which looks as if it might
take the market up.
Today, the bonds opened very close to the previous day's close and came off
and stalled along a strong line of resistance. Those that spotted the
Doji Sandwich in the 400 minute would have given more credence to the
set-up than usual, and gone long - the rest is history.
In a five-minute time frame, and in the right circumstances, the day trader
of bonds has good reason to take note and act on it. However, like all
patterns, much depends on exactly where they occur, in relation to the
price action, which is why it is so difficult to see how tape reading can
be systemized. The fact that it cannot really be computerized, as so much
depends on the eye and brain in sync with the flow of the market, that many
traders prefer more mechanical methods. I have yet to see Pattern
Smasher, but from what has been said on this forum, it sounds as if it has
some interesting possibilities. Instinctively, I think that computerising
patterns will always be difficult, because of the very varied circumstances
and different aspects of the market environment - and systems people, so
far as I can make out, like to be given precise messages on which to act.
For me, it is natural to want a system, but un-natural for it to be
deliverable.
Anyway, my Doji Sandwich has served me well, as it did today, when the
market stalled and reversed, in line with the expectation of the pattern,
in the longer time-frame - with only Greenspan slicing the end off trade!
Hope this helps
Bill Eykyn
www.t-bondtrader.com
-----Original Message-----
From: RAY RAFFURTY <rrraff@xxxxxxxx>
To: T-Bondtrader <t-bondtrader@xxxxxxxxxxxxx>; robin hall
<rjeanhall@xxxxxxxxxxxxxxxx>; RealTraders Discussion Group
<realtraders@xxxxxxxxxxxx>
Date: Tuesday, June 29, 1999 7:24 pm
Subject: Re: re:tbonds sep
>Hi Bill,
>
>OK, I'll bite. I know what a Doji is, but what the heck is a Doji
sandwich?
>Is it available for take out {;-)
>
> Good luck and good trading,
>
> Ray Raffurty
>
>----- Original Message -----
>From: T-Bondtrader <t-bondtrader@xxxxxxxxxxxxx>
>To: robin hall <rjeanhall@xxxxxxxxxxxxxxxx>; RealTraders Discussion Group
><realtraders@xxxxxxxxxxxx>
>Sent: Tuesday, June 29, 1999 11:35 AM
>Subject: Re: re:tbonds sep
>
>
>> Your guess is as good as anybodys! A pattern which I christened a Doji
>> Sandwich has occured on the 400 minute chart and in the right
>circumstances
>> on a 5 minute chart would indicate a reversal, or otherwise a
retracement.
>> Such information 'might' prove helpful to the position player.
>
>
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