|
PureBytes Links
Trading Reference Links
|
Thanks
for taking the time to make a detailed response to my post. It is really
beginning to make sense and your patience and help are greatly
appreciated.
<FONT face=Arial color=#0000ff
size=2>
I
think you are right in that I am trying to make it more difficult than it really
is. All of a sudden it now is coming together and seems to be quite
simple. Thanks again.
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2>Bill
<FONT face=Tahoma
size=2>-----Original Message-----From: EAdamy
[mailto:eadamy@xxxxxxxxxx]Sent: Friday, June 01, 2001 7:15
PMTo: realtraders@xxxxxxxxxxxxxxxSubject: Re: [RT]
SYMMETRYNot sure, but you may be looking for
something more complex than it is. Inany event, it may have been a couple
of weeks since I posted an explanation,so here goes. The price ranges you
cite were marked off in my post"Symmetry - S&P 30 min" and follow-up
"Symmetry - S&P 30 min (bingo!)" bothposted on the 29th. Yes, the
setup does have the general appearance of ahead and shoulders in all time
frames I have posted from 2min through daily,but this has nothing to do
with the H&S pattern. Actually, my identificationand application are
much more akin to William O'Niel's cup and handle whichI have used in
trading for many years.The application is quite simple, for example in
the downtrend:1) every time a new low is made (e.g. 128350 on 24May)
look to the left ofthe extreme high (131925 on 22May) for a pivot low
which has been touched orexceeded (e.g. 128350 on 18May. Draw a support
line from that left pivot lowto the right (well into the future) - I often
refer to this line as the rimas in a cup. Draw a resistance line from the
major pivot high to theimmediate left of the pivot low (e.g. 129950 on
17May) to the right alsowell into the future.2) wait for a
significant retracement back above the support line toward theresistance
line (roughly halfway or more). If the resistance line isexceeded by more
than a couple of ticks, expect the reversal to hold andprice to continue
to rally back toward the extreme high i.e. the decline islikely to fail.
If the resistance line holds and price returns to thesupport line aka rim,
expect the decline to continue and reach targets belowthe rim which are
equal to 62% and/or 100% of the distance between theextreme high and the
rim. Sometimes I enter on the retracement and sometimeson the return to
the rim - just depends on how I feel about the setup. If ithelps, think of
this retracement and return as a handle on the cup - what Ihave added to
O'Niel's work is relating the pivots on the right side of thecup to the
pivots on the left.3) there is a variation of 2) where price declines
right through the rim fora bit, retraces to the rim, then continues south.
I enter these using alimit order placed a few ticks below the
rim.It's that simple, however not infallible. The nice ones are
progressive froma top or bottom as in the 2 minute chart I posted
"Symmetry on 2 minspoo.gif" which I trade off an afternoon low on the
30th. I generally preferprice patterns to indicators because the
information conveyed is immediaterather than filtered and symmetry is one
I use quite a bit, but notexclusively. I do find that when price is
symmetrical it is easy to tradeand when there is little or no symmetry I
had best stand aside.Earl----- Original Message
-----From: "Bill Daniel" <bogeybunky@xxxxxxxxxxxxxx>To:
"REALTRADERS" <realtraders@xxxxxxxxxxxxxxx>Sent: Friday, June 01,
2001 11:07 AMSubject: [RT] SYMMETRY> I have studied Earl's
charts on symmetry and quite frankly often have> trouble distinguishing
the symmetry. I have the highest respect Earl's> commentary and
analysis as he is always thorough and thought provoking. I> know
that my problem is my own inexperience. However, the light
bulbseems> to have come finally come on for me with regard to
symmetry. I had a 20> minute E-Mini S&P chart on the screen
with 25 days of data. I compressedit> down into the tightest
format and it gave what appears to me as a perfect> example of
symmetry.>> Around May 22 there is a nice double peak at about
1320. About 4-5 dayson> either side there are corrections
that peak around 1300. Then about 4-5> days on either side
of that the market level is down around 1250. Then> looking to
the left for about 15 days the market moved between a rangefrom>
about 1240 to 1280.>> Does this left range look like the left
side of a Head and Shoulderspattern> with the right side just
beginning to form?>> Would appreciate any realtrader comments on
my observations.>> Thanks>>
Bill>To
unsubscribe from this group, send an email
to:realtraders-unsubscribe@xxxxxxxxxxxxxxxYour
use of Yahoo! Groups is subject to the <A
href="http://docs.yahoo.com/info/terms/";>Yahoo! Terms of Service.
Yahoo! Groups Sponsor
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
|