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Earl:
Does this also work on eod charts? Or, is this method more suitable
to intra-day trading?
Chas
-----Original Message-----
From: EAdamy <eadamy@xxxxxxxxxx>
To: realtraders@xxxxxxxxxxxxxxx <realtraders@xxxxxxxxxxxxxxx>
Date: Friday, June 01, 2001 5:59 PM
Subject: Re: [RT] SYMMETRY
>Not sure, but you may be looking for something more complex than it is. In
>any 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!)" both
>posted on the 29th. Yes, the setup does have the general appearance of a
>head 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
identification
>and application are much more akin to William O'Niel's cup and handle which
>I 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 of
>the extreme high (131925 on 22May) for a pivot low which has been touched
or
>exceeded (e.g. 128350 on 18May. Draw a support line from that left pivot
low
>to the right (well into the future) - I often refer to this line as the rim
>as in a cup. Draw a resistance line from the major pivot high to the
>immediate left of the pivot low (e.g. 129950 on 17May) to the right also
>well into the future.
>
>2) wait for a significant retracement back above the support line toward
the
>resistance line (roughly halfway or more). If the resistance line is
>exceeded by more than a couple of ticks, expect the reversal to hold and
>price to continue to rally back toward the extreme high i.e. the decline is
>likely to fail. If the resistance line holds and price returns to the
>support line aka rim, expect the decline to continue and reach targets
below
>the rim which are equal to 62% and/or 100% of the distance between the
>extreme high and the rim. Sometimes I enter on the retracement and
sometimes
>on the return to the rim - just depends on how I feel about the setup. If
it
>helps, think of this retracement and return as a handle on the cup - what I
>have added to O'Niel's work is relating the pivots on the right side of the
>cup to the pivots on the left.
>
>3) there is a variation of 2) where price declines right through the rim
for
>a bit, retraces to the rim, then continues south. I enter these using a
>limit order placed a few ticks below the rim.
>
>It's that simple, however not infallible. The nice ones are progressive
from
>a top or bottom as in the 2 minute chart I posted "Symmetry on 2 min
>spoo.gif" which I trade off an afternoon low on the 30th. I generally
prefer
>price patterns to indicators because the information conveyed is immediate
>rather than filtered and symmetry is one I use quite a bit, but not
>exclusively. I do find that when price is symmetrical it is easy to trade
>and 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 AM
>Subject: [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 bulb
>seems
>> 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 compressed
>it
>> 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 days
>on
>> 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 range
>from
>> about 1240 to 1280.
>>
>> Does this left range look like the left side of a Head and Shoulders
>pattern
>> with the right side just beginning to form?
>>
>> Would appreciate any realtrader comments on my observations.
>>
>> Thanks
>>
>> Bill
>>
>
>
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