The Actual Grail

Care to alleviate my ignorance.

 

Don't mean to rain on anyone's parade, but a "grail" that has so many qualifiers (and these aren't all of them) isn't exactly a grail.

 

Yesterday's action was very unmistakable

 

Thanks for posting the ES chart. A 3 minute ES is what I started out trading with RSI and Bollingers. I used a 1.5 point stop. Unfortunately, I found the double top/ double bottom method to be a little too subjective for me.

I traded this method along side a person who was VERY successful using it. The friend of mine had me code his trading method into an automated strategy. The results were horrendous! The reason being is that pattern recognition depends on the person looking at the chart.

What I see as a perfect double top with an RSI divergence might look like garbage to you. How far apart should the peaks be? How much of a divergence should occur between the peaks in RSI? Should the second peak hit the top Bollinger? If not how close should it be?

Also, you have to take into consideration that no two patterns form exactly the same.

I've known a person who was successful with this method, but I prefer to have something a little more mechanical. I like signals that are not open for debate. They either happened or they didn't.

That's just my $0.2

-Hoo_doo

 

The point is that all of the signals can be taken with proper money management. Experience over the years has taught me which ones are the better ones. Those better ones are the grail .

 

However, the same could be said of any indicator: MACD, ADX, or even MA XOs.

On the other hand, if you're arguing that the grail is in the mind and not in the indicator, I'm with you.

 

This is a perfect example of what I mean by "subjective". The only trade that I see on yesterday's chart is the second short that you have listed. To me that looks like a "perfect" double top with a solid divergence in RSI.

I would not have taken any of the other trades and as a result, I would not have made any $$

-Hoo_doo

 

b1s2,

This is your picture from today ( I assume ). I doctored it up a little so it may not look that great.

The circles on RSI mark what I would consider divergence. The buy for me would come when price came back and "tagged" the bollinger band.

-Hoo_doo

 

B1S2+RSI is the holy grail

 

Here are the last two days, if you'd like to be less active and use an hourly chart. Sell signal has not been generated yet on the hourly today although it is getting closer on the 15.