How to research and verify trading ideas

[talontrading]

Hey guys, no offense, but I don't see how this is relevant to this thread. In the absence of a significant amount of quantitative data on events like this, it's really impossible to backtest something like this... which is really kind of old fashioned stockpicking.

like i said, don't mean to be critical but this is not, to me, representative of what i would consider "best practices" in professional trading.

i know there are guys who make money doing this, but it's just not the kind of thing you can really nail down and expect to be consistent with (unless you're one of those old timers who has been consistent like this for a few decades )

Quote from HattieTheWitch:

Thank you for the link!

Understand that I was not questioning if the article existed, just stating that I couldn't find it - par for my course, unfortunately.

Back to my question though, 1) we are talking about SNT, right? and 2) noting that there is a reference to matters requiring court approval - where do things stand with those matters at the moment?

Thank you.

 

[TraderTactics]

Thanks for giving out these it's great tip man i've not thought of it before.

 

[talontrading]

See Jack, this is what people are talking about. You have taken something that is crystal clear and very simple and made it complicated and obtuse. For what it's worth, this setup works much more than 1 out of 4 times as you claim. My win is well over 90% with this play over a very large sample size, and it is extremely teachable. It has nothing to do with the arcane technical characteristics of volume and one needs neither a "dom / non dom" nor a "stretch / squeeze sentiment" indicator. All you need is to spend some time watching level 2 and do exactly what I said.

It also is really not backtestable unless you have recorded bid / ask and print data for a ton of stocks. Furthermore, you say the level II approach is "moot" because you have taken this very simple little setup (which by the way is probably the best and most simple level II play there is) and made it into a complicated technical setup. Don't do that. It is simple.

Unless you are a very specific kind of trader, and I see no evidence from your posts that you have experience trading like this, you do not understand a trade like this. This is pure old school tapereading.

Moderator, please clean this thread and close it. I will start another thread (probably tonight) on the risk management topic, but I think this thread has grown into what it was meant to be.

Thank you, everyone.

Quote from jack hershey:

The level II approach works approximately 1 out of four times when the "Wall" appears (comes into view) as price is trending. To back test it, you can consider the characteristics of each of the four contexts because each is knowable in advance. By disregarding the three that fail to do what is suggested, the best place to focus is on the one that works.

Once you have the ingredients to do this testing then the Level II suggested approach is moot.

Where the trading method works is anticipated by looking at the difference between a retrace and a reversal. Ignore retrace settings and focus on the very beginning of the reversal. As the reversal continues the volume is in decline and it reaches a trough defined as greatest disagreement of the potential buyers and sellers. there just beyond this point in the reversal is the Wall mentioned on the LEVEL II suggested approach. The wall is there for technical reasons (algos etc, as a consequence of geometry in price action).