I have recently bought book "stock patern for daytrading" by Barry Rudd. Question 1: He discusses one of the criteria for entering the trade in price spike up is, that price must have spiked up at least 3/4 of a point (means little less than one dollor )within 5minutes. Now what confusses me here is that how it is possible that price increase that much in 5 minute only, since i have never seen that before? And in level II screen he always shows spread of 1/4 to 1/8 spread for each tier, but i never see that kind of spread on any stock with level II screen? Question 2: What do you think about "stock patterns for daytrading" by Barry Rudd. I have bought this book recently and read first half of this book which covers TA. I bought this book because of book title "for daytrading". But seems 75% of setup good for swing trading, and looking at QQQ intraday charts, none of his patterns happen and can be used for sclap trading. May be i am wrong or may be i bought wrong book as a sclaper. what is your opinion on this book?
The first edition was written in 1998, but i am talking about stock pattern for daytrading "part II" which is written mid 2000. I bought this book from traderslibrary for 95USD. But the aurthor Even himslef some time says his patterns not very often happen in the market and you will only find them after you train your eyes and have enough experince to find them why would i need his god damn fading tecnique like tagging, big stake and a rainbow, double rollover and double turnups that happen rarly and accoring to him some are risky and for experiance one
Doesn't matter. There can be a lag of as much as a year between the writing and the publishing. Even if the book has made it to galley proof, it's going to be a while before it's available for sale. Thus a lot of books written during that time show patterns and intraday ranges that may never occur again. --Db
I also have books I and II, you can learn hows how to think thru a trade like he did. They are more like a private trader journal than a how to day trade book.
I also have books I and II, you can learn hows how to think thru a trade like he did. They are more like a private trader journal than a how to day trade book. ---------------------------------------------------------------------- Are you saying this book worthless? But i am sure early part of this book talking about reverasal setup, wide day range with extreeme close, consolidation breakout are the patterns that works on most days, as i have seen it happened. What do you think about Non-TA part of the book that covered later like money managemnet, sycholgoy, risk/reward,.... are good? Were you happy overall with this book ,worth reading for daytrading when you bought it?
Question 1: He discusses one of the criteria for entering the trade in price spike up is, that price must have spiked up at least 3/4 of a point (means little less than one dollor )within 5minutes. Now what confusses me here is that how it is possible that price increase that much in 5 minute only, since i have never seen that before? And in level II screen he always shows spread of 1/4 to 1/8 spread for each tier, but i never see that kind of spread on any stock with level II screen? --------------------------------------------------------------------------------- By the way It seems No one is able to reply to my first question?
Without reading the book I don't have a frame of reference as to what stocks he trades, but 2-3 years ago a $0.75 spike was very common on the higher priced stocks. Even now you will still see some. Take a look at EBAY 5min chart at 10:00am yesterday. There was a $0.76 spike on that bar. I would be more inclined to look at a percentage change spike rather than a $ spike as the market is contantly evolving and todays 0.75 spike may be tomorrows 0.40 spike.