People who ask about my methodology really aren't interested in my methodology. Those who are would read the threads I've contributed to. Barring that, I've offered to explain what I look for in chat, but those who say they're interested never show up, and I have better things to do with my time. I've done the work by making the posts. It's not up to me to find them for somebody. Nothing personal, but anyone who's interested can do the work of looking them up. I doubt that anyone is.
Flash, A search of Funky, and Breakout, should prove to be pretty educational, along with db. If your interested.
I'm not surprised that my logic escapes you. The nature of price escapes you as well. As for the floor, the professional traders I know don't have time for all the nonsense you subscribe to. They look at price and volume, support and resistance. And as for the 40d MA of which you're so fond, why today? It failed to provide S in August, in September, in October, and in November. Now, suddenly, it provides support? And that base two weeks ago has nothing to do with it? And what about a 35d MA? Or 45? Or 42? Weighted? Simple? Oh, I forgot. MAs are not a manipulation of price.
Db, you are quite the argumentative fellow aren't you? First off, there are some very high correlations with the moving averages that I use and their behavior with price. Moreover, I do not use them in an "arbitrary" sort of way, which I assume is what you mean when you use the word, "manipulation". Lastly, your comment about floor traders not having the time for all of the "nonsense" regarding pivots and moving averages shows just how ignorant you are. I was a COMEX local for one year, and a NYBOT local for another 10 so it's not like I am pulling this out of the thin air. Perhaps you should ask legendary floor trader Mark B. Fisher if pivots are "nonsense" as you say. http://www.networkinglingo.com/The_Logical_Trader_0471215511.html
From the book, "Logical Trader" Fisher peppers his books with examples, anecdotes and stories. However, the main thrust is focused on explaining his ACD system in excruciating detail with numerous chart examples, detailed explanations of the key terms and trading parameters. The ACD system - plotting price points in relation to the opening range - requires no expensive software. The method provides reference points for trading - A and C points are for entry and B and D are stops. Using the system the trader can calculate when to go long or short. Coupled with additional indicator and measurements, layered on top of the ACD system, the trader will be able to develop a trading plan. To use the ACD system -which is based on simple math - the trader must have certain abilities including collect and analyze information, make and implement decisions, be good with numbers, be disciplined to follow the system. Fisher describes pivot points, the daily pivot price (high+low+close)/3), daily pivot range, 3-day rolling pivot, etc. The last 30 days data are viewed to obtain the big picture of the vehicle being traded. He calls this his Macro ACD. He provides 25 chart examples to illustrate how to score each day. After the first four chapters, Fisher has an exam with answers to make sure that the reader understands all the key concepts and calculations. Fisher adds more meat to the ACD system by introducing the use of pivot moving average (using daily pivot price as opposes to the days close) to determine the current trend (up, down or flat). He uses three pivot point moving averages (14 day, 30 day and 50 day) and focuses on looking at the slope of the moving average line to determine the existing trend or rate of change in the trend. Then Fisher covers exit strategies. He explains the rolling pivot range (RPR) which typically spans 3 to 6 trading days. This is the reference point for entry of the trade. The RPR lets you keep your winning position longer and gets you out of your losing positions in a more profitable manner. Fisher also calculates the price momentum of todays close compared to 8 days ago to determine the trend. He then discusses his use of the "reversal" trade set-up to exploit the market failures. Other subjects covered include the two-way swing, trend reversal trade and sushi roll (change in the direction of the market), and outside reversal week. Fisher illustrates the effectiveness of using the ACD system using charts from the 1929 crash. It would have worked well in 1929 at the top and in 1932 at the market bottom in keeping the trader on the right side of the market.
No, that's not what I mean by the word "manipulation". But I suspect that you're the only person who doesn't understand what I'm talking about, so I'll leave it there. As for "nonsense", I wasn't referring to pivot levels per se. Everyone knows these originated on the floor. What I'm suggesting is that there aren't "tons" of floor traders who arm themselves with multiple MAs over multiple timeframes using multiple bar intervals and repeating all that with Fib and whatever else you drag around with you, particularly since none of it works very well unless the S/R one finds is coincident with price S/R. But you don't understand that either. I notice you didn't respond to my question about stochastics or the 40MA you are so fond of. Whenever you're ready.
Db, I really don't see the point in continuing this discussion. You appear to change your "tune" after every one of my posts and quite clearly have a pretty bizarre understanding of the word "manipulation". . . I don't find any value in it whatsoever, especially since you are not interested in doing anything other than for the sake of argument. As for floor traders "dragging" around a small sheet of paper that includes some simple moving averages, pivots and their respective S/R, not too mention significant fibonacci's, I stand by what I said before . . . You are very ignorant of the tools that floor traders use and have obviously never set foot on a commodity exhange. Enough said. Good Luck.
Nor do I. However, since you still don't understand how an MA is a manipulation of price, ask one of your children to explain it to you.