I was reading the Drummond Geometry website and there was an endorsement by none other than Mark Douglas. I sent an email to Mr. Douglas asking him about it and here is his reply: "If you're willing to make the commitment in time and energy, the Drummond method is definitely worth it." The course is around $5000 and is really involoved and will take several months to complete (let alone figure out how to use it in actual trading). I know some people on this board have made negative remarks about the method but I would like to get any feedback any of you might have. Do you know anything about the method? Do you know anybody who trades the method? What are the results? Is Drummond for real or just another snake-oil salesman? Does anyone have any actual personal knowledge about Drummond Geometry? Anything you can tell me about it would be greatly appreciated.
I've seen the website and the demo but it seemed overly simplistic with just variations of moving averages unless I'm missing something ,which could be the case.
Simplistic would be the very LAST word in the dictionary I would use to describe this. You're right that the "PL dot" is just a 3 period moving average but there's extensive coverage of their theory of price movement in relation to it. Also, they get really deep into multiple time frame analysis. What's most unique about it is the lines they draw to identify areas of support and resistance. They'll draw a line that connects the high of 2 bars ago to the low of 1 bar ago and project the line to where the current bar is forming. They have many other wierd lines like this that they draw on the higher time period to flag areas of "energy termination" or support/resistance. You then transfer these levels to the traded time period and use them there. There are 30 lessons all together and I bought 1-5 just to try it out. They're UNBELIEVABLY detailed and thorough with 100's of chart examples and then dozens of questions at the end. It took me an average of 2 days to get through each lesson. My main area of concern is: I don't mind putting in the time and effort if I'm convinced that it's a viable method. It's hard to be sure of that though because I haven't found anybody who's actually used it and made money with it. If it's a viable method, then there's no doubt in my mind that the course is awesome. It's a very complicated method but the lessons are so well done that anybody should be able to learn it. The "minor" issue of whether the method works or not is what I'm struggling with.
Sure you miss something As usual people focus on techniques or procedures instead of framework. The framework of Drummond Geometry is based on a weird theory of psychic energy, that is to say a complete esoteric theory at least for conventional science today. So ...
It is possible to predict where the next trading opportunity might be by using geometry ( trendlines and their intersections ). I do it daily and little bit differently then Drummond. But it should not cost more then 1,000 to learn practical use of it . Walter
Theory of psychic energy? No, it has nothing to do with that. Most of the method is based on deviation from, and return to a moving average. They try to predict when these events will occur based on their perception of support and resistance. This is where the geometry comes in. They identify areas of support and resistance based on geometric lines drawn from the highs and lows of the last 2 price bars (on the higher time frame) to where the current bar is forming. When I first read about this it seemed unusual and even arbitrary. But in the last few months I've discovered there are other schools of thought that are very similar. As far as "psychic energy" and being esoteric, they do say things like, "life consists of energy, and all of life moves in a constant flow, from one extreme to another, flowing back and florth in an eternal cyclical or wave-like manner." This was a little weird at first, but these guys aren't the only ones that view market movement as a series of waves. They aren't the only ones that view market movement as being from one extreme to another. I can see how your first impression would be that they're a couple of new-age wackos but after completing the 1st 5 lessons I don't feel that way anymore. There's a lot of very down-to-earth, widely accepted fundamentals of technical analysis to their method. It's just used in an unconventional manner. The other thing that makes me think it might be for real is that Drummond has been refining the method for over 30 years. I just can't imagine anybody sticking with a SCAM for that period of time. Also, there obviously aren't many people using this method so it isn't like thery're getting rich off of selling their course. More opinions?
Walter, so you think there IS validity to using geometry? How did you come across the method you use? How long have you been using it?
Flier6, I have visual memory, I have to see text or image to be able to comprehend quickly. For me geometry is the simplest and most accurate method of seeing what is ahead. Problem is that it is subjective and cannot be backtested so most people will dismiss it as a nonsense. Geometry should not be use alone with smaller intraday time frames and works best in liquid nonmanipulated markets . I started with geometry of markets about 6 years ago and have developed my own method based on intersections of trendlines in the future, so I know , per example , I should pay attention 45 min from now. Walter