I primarily trade using tape reading in highly liquid stocks for small amounts of money. However, I would like to start to learn how to transition my strategy where I can combine tape reading with chart patterns in order to make longer intraday trades. I was wondering if any successful traders have insight as to what are the most powerful chart patterns that occur on a daily basis. Perhaps next time I see them I can try to incorporate my knowledge from tape reading with this information to get good entries and exits. Thank you.
Combining Tape Reading with Charts
- Thread starter kmgilroy89
- Start date
Try this site @ http://thepatternsite.com/ by Thomas N. Bulkowski
Hopefully, your combining of tape reading with chart patterns will be more profitable than tape reading alone.
actually, wrbtrader is being quite modest...
you should look at http://www.thestrategylab.com/ .... the concept can be easily incorporated into one's own methods and allows for using "reading the tape" to support Price Action... little to do with chart patterns, but it can be applied to equities..
you should look at http://www.thestrategylab.com/ .... the concept can be easily incorporated into one's own methods and allows for using "reading the tape" to support Price Action... little to do with chart patterns, but it can be applied to equities..
If those results are real then they are amazing. Already over $500k. 162-11 in winning days to losing days. I'd be interested in the course if I could verify if the results are real. By the way, the computer is awesome. Fast and no problems.
Thanks for the link. I've seen his patterns before and I've emailed him about them. However, he refuses to say what axioms constitute these patterns and it's therefore impossible to simulate his results by back-testing unfortunately.
What kind of "axioms" are you looking for?
Bulkowski includes Identification Guidelines, performance stats, and other information for almost every pattern listed on the site. My personal gripe is that his bent is all about swing trading and/or investing. Day-trading the chart patterns is an ugly stepdaughter with no published stats.
What I mean is you can't look at a chart and definitively say what is and what isn't a particular pattern by his guidelines alone. His identification guidelines simply aren't strict enough. Therefore it's impossible to actually test his results. He won't give this information up either. I emailed him for it about a year ago.
tape reading itself is a pattern generator,which are the finite series of 11.So i do not understand your question.You want to combine what with what?
as for the most powerful out of those 11, i found the 'sideway' lateral formation.
Quote from Rorschach_test:
tape reading itself is a pattern generator,which are the finite series of 11.So i do not understand your question.You want to combine what with what?
as for the most powerful out of those 11, i found the 'sideway' lateral formation.
Finite series of 11? I'm not quite sure what this is referring to. Where is that from? I guess what I really want to do is find the proper setups via chart patterns. Then I'll use tape reading to decide if I want to enter and where to enter. Right now I'm spending a lot of time watching too much junk, hoping something comes up. I haven't seen anything on the tape worth watching since I shorted WIN at $8.00 on Friday morning. If you look at that chart you'll probably notice the resistance at $8.00 before going down to like $7.82. I'm particularly interested in S/R patterns where I can have a tight stop, but can potentially catch a big breakout.