|
PureBytes Links
Trading Reference Links
|
At 09:29 AM 4/20/2001 -0700, you wrote:
>Ever wonder who or what you are trading with?
No. Its not relevant to trading profits from the market.
>After watching this DGL on the NQ for a bit the impression is that there are
>some super computers that are constantly comparing price against a matrix of
>lines. Once a correlation of trend between price and the line is detected
>the supercomp then goes into a buy below and sell above the line in a
>channel based on some volatility measure. So then we have a bank of
>supercomps trading with each other around the globe with varying matrixs of
>Gann boxes, lines and fibos and when the guys in the pit decide to get even
>they break the trend on globex or at session breaks. Then it takes awhile
>for the comps to zero in on another trend. Fact or fiction? Some of both
>perhaps.
In my view it really doesn't matter. There are millions out there, big and
small, putting their capital to work in the markets all with their own
notions of what works, their own timeframes (tick to minutes to days,
weeks, months and years) and their own risk issues. Not to mention
superstitions and presumed knowledge.
The bottom line is that, in the end, its all very simple. Price is either
trending up, trending down, or not trending (consolidation). So failure to
move up, move down, or retracements in a trend offer plenty of opportunity.
Detect what is happening and trade - and/or importantly, stand aside until
its time to trade - accordingly.
A few horizontal lines, some basic consolidation patterns, and ADX is all I
use. Basic techniques got me long at ES 1103 on April 4. Basic techniques
caused me to highlight that price was holding up well in the ensuing few
days - not in hindsight now - with prior resistance turning into support.
Subjective factors such as sentiment did not influence my trade but did
cause me to have a certain expectation for the outcome. Sentiment in that
week was very negative, palpably more negative than at any time leading up
to that point that I can recall. Anecdotal evidence only mind you, but my
sense was that the disbelieve from even long term longs, and the
conjunction of price action, was supportive of a major move up.
But the trade was there and I'd have taken it anyway. And I sure don't
think about who is on the other side...
Cheers
Michael
______________________________________________
Michael Watkins
Chief Technical Officer
watkins@xxxxxxxxxxxxxxxxxxxxxxxxx
http://IntelligentSpeculator.com
Technical Tools and Trading Strategies for the Active Investor
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|