AHG - Profitable Strategy for Struggling Traders

Discussion in 'Journals' started by Anekdoten, Jul 19, 2007.

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  1. Correct.

    The possible inverse h and s and the triangle at the edge were the missing patterns in the chart.

    However, just like H and S work better at the very tops, Inverse H and S work better at bottoms, so it's position is not optimal. The rest is still valid.

    Anek
     
    #2901     Nov 3, 2007
  2. B,

    If price is trading in a channel, for the sake of argument, lets say a downtrend channel, expect it to bounce up and down with a bearish tendency. Now, to ensure your stops are small, even in a downtrend you want to short high, and in an uptrend you want to buy low, this is where the trendlines of the channel help. This is not the same with formations, a solid confirmed reversal formation is quite alright for entering at the lows but this is not the case of channels. Hence why I suggest the trendline channels usage as guidance. The formations price will form at the extremes do tell good info, so make sure you pay attention. In yesterday's case the downtrend channel formed a bear flag as it broke the channel to the downside, I was almost certain price was ready to fall, but it failed miserably. Naturally I took my small stop and realized that price was not ready to go to lower lows because if a confirmed bear flag failed, which is one of the most reliable formations for downside, the failure should be applied accordingly. The subsequent move was higher lows from the bear flag pattern until it finally broke out of the channel. However, that was predictable. As explained in the past, failures are sometimes as powerful or even more powerful than patterns themselves.

    Notice that during rectangle consolidation, where price is bouncing off support and resistance there is no predominant side to choose between the two, in this case, look at the whole day and choose the side that has been winning all day long, if no clear definition, simply stay out and wait for better setups or wait for a confirmed breakout that aligns with the predominant intraday trend.

    Anek
     
    #2902     Nov 3, 2007
  3. monti1a

    monti1a

    whooaaa...journal back up.....


    welcome back..Anek...I've got some reading to do.
     
    #2903     Nov 3, 2007
  4. As point B was the low of the big trend. The H&S is, in a way, at the bottom.



     
    #2904     Nov 3, 2007
  5. Valid point but I still prefer the head of the inverse head and shoulders to mark the absolute lowest point of the picture in study. It does look ok, particularly since it has confirmations from other patterns including the downtrend line break but definitely not optimal.

    Anek
     
    #2905     Nov 3, 2007
  6. R,

    Look at this one:

    That's how I like them.

    Anek
     
    #2906     Nov 3, 2007
  7. R,

    Here is one from the daily chart.

    Anek
     
    #2907     Nov 3, 2007
  8. I would agree, somewhat. The NQ works better than the ES, which is too choppy; but crude works the best, imo.
    CL tends to give immediate feedback (a minute or two) if averaging up is going to work or not. With ES there is so much back and fill that it would not work for me.

    This is a nice journal--glad to see it back from the dead.
     
    #2908     Nov 3, 2007
  9. S,

    Thank you. I know you advocate averaging up as well so if you could take the time to post a few charts related to CL that would be great.

    I must admit I'm not a student of crude but always looking forward to new tests and adventures.

    Anek
     
    #2909     Nov 3, 2007
  10. Tnx for the charts A.

    Can't wait for monday to arrive!
     
    #2910     Nov 3, 2007
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