I said this a long time ago but I think it merits a repeat. Trading in the Zone by Douglas Suri's Book Roughly 100 bucks give or take a few dollars. Screen time. All you need. Anek
That's another pattern I' ve been using while I was trying to "catch" the best piscuy pivots. I actually have a code in Amibroker that draws a dot above/below each candle signaling this pattern ----------------------------------- Another super simple code I'm using lately is one that signals a bar with H <= H-1 AND L >= L-1, basically it signals a bar with an equal or smaller range than the previous bar. In an established up/down trend, often this bar signals a pause and continuation of the trend. Entering in direction of the trend using the high/low of this bar as the trigger and the other end of the bar as the stop seems a doable scalp strategy. 2 reasons why it seems to work well: 1) In an established trend, this bar is like a micro consolidation, you usually see volume drying up, and the following Break Out is often good for a microscalp. 2) Since it's often a small bar, the stop below/above/ the same bar is very small compared to the current volatility. Keep in mind I'm still studying it.
Prof: Thanks for the great charts. My short-term goal is aspiring to achieve your level of chart-reading and analysis during live trading. Your efforts are sincerly appreciated. Best luck in 2008.
Mark, This pattern is called Inside Bar, which is a Western candlestick pattern. Close to Japanese candlestick Harami pattern. But it is interesting to note that you are applying it to intraday trading. Do share your finding when you have more update !
hi jychiu, thanks for your post about Matching Highs/Matching Lows... the way to look Matching Highs/Matching Lows pattern is from a Resistance/Support point of view. if prices have difficulty crossing certain level repeatedly (in any time-frame), it may be signaling a reversal... in intra-day trading if this happens in simultaneous bars, it may offer an opportunity to trade. if it also happens near key support/resistance levels, MAs or near Extreme FibBands, now your trade success probability will increase... some times the next-higher time frame may be signaling the pattern precisely (at least 3-bars Matching Highs/Lows) one of the way to detect this pattern is to have a tolerance of 1-2 ticks and check last 5-6 bars to see if they all Highs/Lows are within a certain threshold.. regards, suri <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1724256" border = 0>
Something to maybe help everybody when looking where buying support and target levels should / could appear. It is quite amazing how price likes to move in equal increments and also adhere to trendline extension targets. it is all about price, after all...