No, I use 3br for the entry trigger. The HA bars help me stay in a trade. Also, I look for a change in color before entry to help prevent early entries. Meaning, in an uptrend, I wait for the HA bars to turn red, before looking for a 3br entry (of course watching the pivot relationships to make sure the major pivots still have HHs and HLs).
Thanks Sandy. I recall you were once a satisfied user of Felton Trading. Hoe does that now fit in with your trading the ES?
It sure looks like a trend day in hindsight. Wish I could tell in advance and just short and stay short.
Hoolee, could you elaborate on which portion of that chart represents the actual dragon "setup" (beginning, end) To me that just looks like a W bottom.. What makes the dragon setup different?
From what I have read from different posters about HA, most NEVER use HA for entries... They usually use to alert of a possible change of trend for exits.... Also, HA, has a tendency, in my opinion, to visually smooth out the price action, so it looks less confusing.. This is purely psychological, but it helps me really focus on pivots, and formations, and support/resistance, trendlines... and less on the other stuff.. To me, HA is simply just a visual preference, not to be used as an indicator.
Which brings up a good point. The author "isnt overly impressed" and then goes into a rant on how traders are looking for a "holy grail" to become profitable, etc.. It isnt designed for that purpose, IMO.. So of course, its going to fall short of "holy grail" expectations. It simply a slight variation to view price action... The holy grail are the "methods" we are discussing in the thread
Agree. I use HA as a visual aid , too. Like you mentioned , it just smooths out the price and I can focus on other things on the chart.
take a look at this page http://www.trading-naked.com/JerrysDragonPattern.htm The Tail and Head parts reveal more support/resistance levels than a W bottom can provide.