|
PureBytes Links
Trading Reference Links
|
Don
You will appreciate my comments were made in a day
trading context - they usually are! For me, I need the fastest most
accurate means of determining what is happening, in time frames measured in
minutes, and there is nothing better than the price action itself. In
daily, weekly or bigger time frames it is no doubt a whole different story -
provided you also have the margin ability for the necessary stops,
etc.
When operating in minutes you simply cannot afford
the lag of indicators, all of which that I have come across need to react to
price action. There is no point watching an indicator tick up and down
with the price action, since the price action is doing it anyway! I don't
doubt for a moment that the market moves in waves in all time frames, but it is
a question of how that can be harnessed before, rather than after the
event.
Take today, when your mention "...not sure if this
is minor 4 of Wave 3 or Wave 4..." how can that help you make the decision to
take or not take a trade, at a particular point of entry against a particular
target, with a predetermined risk reward ratio? I use a totally different
criteria and the concept of waves simply doesn't help - me. It might be
okay for others, but that is for them to say!
So, paradoxically, I have not tried it in the time
frames in which it might well work and I have tried it in the time frames in
which I am sure it does not work. But I am always on the lookout for new
and improved ideas and I am quite prepared to keep an open mind - meanwhile, as
you have said, "if it ain't broke don't fix it"
Price patterns, on the other hand, I would like to
have a much bigger 'library' of and sometimes I come across something that 'new'
or at least 'new' to me. That is how I came to call a particular pattern a
Doji Sandwich - and it is a pretty reliable pattern, too. Sometimes
it is not as pure as it might be (rather like the H&S I called on the bonds)
and there is no point saying that a pattern has to measure up to a fixed format,
because in my experience most don't a lot of the time. Often you get one
confirming another. The H&S incorporating a 2-bar reversal, as well as
a 618 retracement led me to conclude a trade worth taking - but don't ask me if
it is going to go the distance of a full blown H&S. It gave me and any
day trader what was wanted and if we end up with 3 black crows, it may give the
position player something as well. (It has certainly proved that it was
not misinformation, but you had to read what was said and understand the context
and I think that is the least you can expect of anyone reading a post on this
list).
Anyway, I hope this helps - if it only clarifies
how I look at the market, the bonds.
Finally, I've not the time to check this
through, as it is now late at night here in England and I cannot stop, so please
take this as E&OE...!!!!
Best of trading
Bill Eykyn
eGroups Sponsor
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxx
|