http://www.elitetrader.com/vb/showt...4965&perpage=6&highlight=ammo&pagenumber=1647 bottom of this page and then the following page
ES chart patterns
- Thread starter billsafari
- Start date
When I was really green I started a thread in this forum about ES chart patterns. There may be one or two patterns that you find useful there, although I may not be looking that much at that stuff these days. There are different ways to view the market. I will say this though. When I started trading the ES, prematurely of course, I was biased against believing in the classical market patterns because of an author I had some respect for.
I then slowly became aware that regardless of the inflated ego of this author, patterns do in fact exist in the ES market and awareness off them can lead to profit. The ones I have observed time and again is triangles, wedges, bull/bear flags, head and shoulders (inverse as well), double tops, double bottoms. There are several others, but these are a start.
Whether you find them to be useful in your trading is a different question, but they do exist.
If there is one characteristic or pattern if you will in the ES market, that would be fake breakouts and a lot of retracement/backfill even during a strong move. Because of this characteristic, it is often not wise to buy a breakout, but instead fade it or enter on the retracement. Context is of course important. Gap fills are also useful to be aware of, although one should never trust them blindly as some seem to do at times.
Happy hunting!
I then slowly became aware that regardless of the inflated ego of this author, patterns do in fact exist in the ES market and awareness off them can lead to profit. The ones I have observed time and again is triangles, wedges, bull/bear flags, head and shoulders (inverse as well), double tops, double bottoms. There are several others, but these are a start.
Whether you find them to be useful in your trading is a different question, but they do exist.
If there is one characteristic or pattern if you will in the ES market, that would be fake breakouts and a lot of retracement/backfill even during a strong move. Because of this characteristic, it is often not wise to buy a breakout, but instead fade it or enter on the retracement. Context is of course important. Gap fills are also useful to be aware of, although one should never trust them blindly as some seem to do at times.
Happy hunting!
There are two types of patterns: (A) Classical chart patterns and (B) Price Patterns.
(A) Includes h&S tops, wedges, triangles, etc. These are not timing signals. They all need confirmation for placing trades. These are better viewed by some as indicators of possible market scenarios.
The man in charge of this department is Thomas Bulkowski. He has done extensive research, written books, has a website filled with free information and statistics and he has developed a pattern recognition program he offers for free but it will only run under Win XP.
http://thepatternsite.com/
(B) Includes things like inside and outside days, key reversals, gapping patterns, usually of a few bars in length. These are timing signals. They only indicate very short-term direction. Candlesticks are a small subset of these patterns, actually very small.
The man in charge of this department is Michael Harris. He has written books about price patterns, methods for their identification and has developed a program he sells that searches for them. He also maintains a blog with good information about (B) but also with topics from (A).
http://www.priceactionlab.com/
(A) Includes h&S tops, wedges, triangles, etc. These are not timing signals. They all need confirmation for placing trades. These are better viewed by some as indicators of possible market scenarios.
The man in charge of this department is Thomas Bulkowski. He has done extensive research, written books, has a website filled with free information and statistics and he has developed a pattern recognition program he offers for free but it will only run under Win XP.
http://thepatternsite.com/
(B) Includes things like inside and outside days, key reversals, gapping patterns, usually of a few bars in length. These are timing signals. They only indicate very short-term direction. Candlesticks are a small subset of these patterns, actually very small.
The man in charge of this department is Michael Harris. He has written books about price patterns, methods for their identification and has developed a program he sells that searches for them. He also maintains a blog with good information about (B) but also with topics from (A).
http://www.priceactionlab.com/
You might get "Trade Chart Patterns Like the Pros" by Suri Duddella. He has a website where you can review his products. He's an expert in chart patterns. But you still need to develop a robust entry/exist system.