i have been following this from the start of this thread ..cant trade full time... but has anybody tried it on a longer time/ greater share number ..would be interesting to see the result
A chart is a chart no matter what time frame you trade it. Same rules apply, although it would have larger risk and reward. It works. Piscuy
"Quote from billdobson1972: i have been following this from the start of this thread ..cant trade full time... but has anybody tried it on a longer time/ greater share number ..would be interesting to see the result " -------------------------------------------------------------------------------- "A chart is a chart no matter what time frame you trade it. Same rules apply, although it would have larger risk and reward. It works." Piscuy Hi Billdobson & Piscuy, After I ceased Daytrading in 05, using price based techniques similar in principle to the ones discussed here. I then applied these tactics to spread trading options over futures contracts. This approach has proven to be excellent for trade entry and when adding to existing positions. One weakness though, is in detecting trend reversals, but strategic use of Options Spread dynamics help to mitigate this weakness. I hope this provides some food for thought as most of us myself included have an aversion to large stops, as these have the potential to lead to serious drawdowns. Best Regards Johno
It seems to me this Thread is moving past its original intent of identifying and implementing HH, HL LH, LL trading a.k.a. AHG !! I dont know maybe I am wrong about this. It just seems to me in the last couple of weeks its all about Double bottoms , Double tops , rectangles , triangles, Head shoulders, failed double tops , failed double bottoms,triple tops etc..etc..more. Of course there are circumstances where a continuing double bottom in a uptrend could be argued as a form of HH, HL trading. But the majority of this style from my eight years of trading is highly subjective. And thats not to say HH, HL trading is not subjective to a certain degree. I know it is and trading in general is highly subjective as it is much about being art as it is science. But honestly, I must say for some reason have noticed this and I see where Anek has posted his top strategies and does NOT even include HH, HL trading as one of them. And I do realize in the first weeks of this Thread Anek did identify that learning to profit off congestion, consolidation (triangles, double tops etc) is one of the advanced steps in this style of trading. However,I still just found it odd that for such a long time it was the bread and butter ,but now HH, HL seems to be disappearing. Please I am not trying to start any controversy ,whatsoever. Anek and his thread is the best thing ever to come to ET. And Im totally serious and sincere about that. But I guess that is why I am writing this. Because of this shifting of style and slowly going away from the original strategy that was so exuberantly stressed at the beginning of this thread. And its just a little disconcerting on my part that this original and highly effective trend following strategy is in someway being lost.
Jimmy, Baby steps. First you crawl, then you walk then you run then you fly. This is the same path I took and it worked pretty well for me. By having a solid foundation of how price action works you can then apply this to the most reliable patterns and take them to the next level. For instance say you see a well known pattern, and the pattern works, well by having a solid foundation of price action you know exactly when the party is over and when to continue. Where to place your stops, when to scale out, when to add. Also notice the paintbars, what do you think that is ? A close above previous high or a close below previous low ? Put all the pieces together my friend. On Friday I barely traded because of personal matters which is why I only took two highly reliable patterns instead of the usual scalps too. Hope this clears your doubts. It's up to you to decide where to start stop or even end, I'm only providing an education. Anek PS: Besides I did not expect this journal to become the humongous beast it is now.
Jimmy, Also look at my past NQ intraday analysis lately, except Friday, that's pure price action with patterns embedded. In fact, I never seen that done before in ET period. Usually you see a pattern identified with an indicator confirming it or some other different flavor. Honestly, not getting your comments. Anek
I'm pretty sure number 3, "flags," are actually AHG basic (my own terminology), so I think HHs and HLs are included... I could be wrong... AHG advanced is reversals, double tops and bottoms (and failed ones), and triangles...
I'm officially in vacation but due to Jimmy's post I could not help myself and attach one more chart for clarity. All in unity, all the pieces of the puzzles combined at last ! Sayonara Anek
Thanks Anek For clearing up this for me. Just something that had me wondering a little bit lately . But it makes sense what you said about taking baby steps and learning the setups that way. xia , I think your exactly right. Anek may correct me but it does seem flags are a form of HH HL trading and reading basic price action.