I'm not a fan of "Head and Shoulder" formations... but this might be one...

[Scataphagos]

Wannabe technical analysts seem to see "H&S all over the place", when they rarely work out as envisioned.

However, this might be a genuine one... IF the neck line breaks and holds as resistance, it's likely negative for the market. FWIW...

 

[murray t turtle]

Wannabe technical analysts seem to see "H&S all over the place", when they rarely work out as envisioned.

However, this might be a genuine one... If the neck line breaks and holds as resistance, it's likely negative for the market. FWIW...

View attachment 323132

%%
NEVER could make all that subjectiVe junk work;
put a lot of curve trend line$ [aka moving averages ];
may help some.
Actually i never spotted a cup withy a handle in real time LOL;
in tradin ' /investing books when named sure, LOL +true, no disrespect intended for IBD + thier newspaper + website.......

 

[Scataphagos]

%%
NEVER could make all that subjectiVe junk work;
put a lot of curve trend line$ [aka moving averages ];
may help some.
Actually i never spotted a cup withy a handle in real time LOL;
in tradin ' /investing books when named sure, LOL +true, no disrespect intended for IBD + thier newspaper + website.......

The notion of moving averages has some merit... even though few produce valuable signals.

1. EVERYBODY (and therefore YOU too should) tracks 50 and 200 day MAs... both simple and exponential..

2. For a given time period, SOME MA is likely to track highs/lows well... you have to try various ones to see which fits best.* If you find one, it likely will fit for only a limited time and then you'll have to find another.

* I recall years back when the 400 day (can't remember whether simple or log) nailed the highs and lows PERFECTLY... trouble was there were only like 3 signals in 4 years... but they were good/big ones!

 

[Scataphagos]

Actually i never spotted a cup withy a handle in real time LOL;

Same here. Good thing that Price TA doesn't rely upon such complex foolishness.

KISS*, Baby!

*(Chinese proverb.... "A man who chases two rabbits catches neither". IOW... if it ain't KISS, it ain't squat!)

 

[VSTscalper]

The following shows what I call a - Range Condition. This is on a 7 Tick Range Bar - which I have been using for many years now. While I mostly trade with my Algos - I will still trade the following setup - one reason being - it feels like seeing an old friend.

This may sound crazy - but when trading on this setup - I actually look forward to seeing the Market start going Sideways. In my early trading days - I would lose money - when Price went Sideways. I would think - "this is a Breakout" - Up or Down - I would Enter the trade - and more than likely - LOSE. I started to focus on finding a way to initially - PREVENT - getting suckered into a trade. During the process - I started to notice - the same thing happening many times. So I started Drawing - what I call a Range Box - then kept extending it to the Right - as Price kept going Sideways - until I saw the Breakout. I then added a Centerline. I noticed that when Price was Below the Centerline - and started to turn Up - I could Scalp it for a couple of Ticks and Short when Price was Above the Centerline - SAFELY - with a very High Winning Percentage. Then - I noticed some Potential - Head & Shoulder Setups.

Sometimes the Range Condition could last for an Hour or MORE. By the way - I have some Strict Rules that I follow - whether it is trading the Range Condition - or in Developing my Algos. I have said this in the past - if you have good Rules - and you Break you Rules - by NOT following them - what the hell good are the Rules.

Here are some pictures of a Range Condition that happened on 09-12-23. Quite often - you can see Range Conditions - at least a few times each day. I only trade for a Maximum of 2 hours each day - when I do trade. But - I turned what used to be something where I would often lose money - into something that I - WANTED TO SEE - as I now knew I had a great chance to make some money - instead of Losing Money.

This is more that I could explain here - but if you are interested - contact me. There is Potential - to make Money - in a Range Condition - but a trader really MUST - FOLLOW THE RULES - if NOT - then it is best not to try trading a Sideways move - just my opinion.

Maybe I will do a Webinar on Range Conditions. If anyone is interested - send me a message. I will NOT try to sell you anything - Totally FREE. If you are having a problem with a Sideways Market - maybe this can help. I only do this on a 7 Tick Range Bar - so if you trade on some other type of chart or size of chart - you would have to figure some things out for yourself. The main problem that you may have - is just listening to me - as I do tend to talk too much - as my lady keeps telling me.

I wish all traders much success.

 

[SimpleMeLike]

The following shows what I call a - Range Condition. This is on a 7 Tick Range Bar - which I have been using for many years now. While I mostly trade with my Algos - I will still trade the following setup - one reason being - it feels like seeing an old friend.

This may sound crazy - but when trading on this setup - I actually look forward to seeing the Market start going Sideways. In my early trading days - I would lose money - when Price went Sideways. I would think - "this is a Breakout" - Up or Down - I would Enter the trade - and more than likely - LOSE. I started to focus on finding a way to initially - PREVENT - getting suckered into a trade. During the process - I started to notice - the same thing happening many times. So I started Drawing - what I call a Range Box - then kept extending it to the Right - as Price kept going Sideways - until I saw the Breakout. I then added a Centerline. I noticed that when Price was Below the Centerline - and started to turn Up - I could Scalp it for a couple of Ticks and Short when Price was Above the Centerline - SAFELY - with a very High Winning Percentage. Then - I noticed some Potential - Head & Shoulder Setups.

Sometimes the Range Condition could last for an Hour or MORE. By the way - I have some Strict Rules that I follow - whether it is trading the Range Condition - or in Developing my Algos. I have said this in the past - if you have good Rules - and you Break you Rules - by NOT following them - what the hell good are the Rules.

Here are some pictures of a Range Condition that happened on 09-12-23. Quite often - you can see Range Conditions - at least a few times each day. I only trade for a Maximum of 2 hours each day - when I do trade. But - I turned what used to be something where I would often lose money - into something that I - WANTED TO SEE - as I now new I had a great chance to make some money - instead of Losing Money.

This is more that I could explain here - but if you are interested - contact me. There is Potential - to make Money - in a Range Condition - but a trader really MUST - FOLLOW THE RULES - if NOT - then it is best not to try trading a Sideways move - just my opinion.

Maybe I will do a Webinar on Range Conditions. If anyone is interested - send me a message. I will NOT try to sell you anything - Totally FREE. If you are having a problem with a Sideways Market - maybe this can help. I only do this on a 7 Tick Range Bar - so if you trade on some other type of chart or size of chart - you would have to figure some things out for yourself. The main problem that you may have - is just listening to me - as I do tend to talk too much - as my lady keeps telling me.

I wish all traders much success.

Hello VSTscalper,

Thank you for the post. Very informative.

Thank you

 

[mikeriley]

Hi there VSTscalper,

I no longer use tick charts, but I'd use tick ranges between 2000 to 10000.
How can you keep up with a 7 tick bar? It would be flying across the screen.

I can't imagine that size in Nasdaq or S&P Futures. What do you trade?

 

[VSTscalper]

Hi there VSTscalper,

I no longer use tick charts, but I'd use tick ranges between 2000 to 10000.
How can you keep up with a 7 tick bar? It would be flying across the screen.

I can't imagine that size in Nasdaq or S&P Futures. What do you trade?

I do NOT use Tick charts either - this is a Range Bar. A 7 Tick - Tick Chart - would be way too fast - and it is NOT the same as a Range Bar. A "Tick" on a Tick Chart - is a "Transaction". With a Range Bar - a "Tick" - is a Price Increase or Decrease - a One Tick Price move - so they are TOTALLY different. On MultiCharts - which I use - they call a Range Bar - a Point Bar.

RangeBar on Top
TickBar on Bottom

Edit: Both are 7 Tick - but totally different - as I mentioned above. Look at the Trading Time on the bottom of each chart - it really shows how FAST - a "Tick" chart is - compared to a Range Bar.

 

[mikeriley]

I do NOT use Tick charts either - this is a Range Bar. A 7 Tick - Tick Chart - would be way too fast - and it is NOT the same as a Range Bar. A "Tick" on a Tick Chart - is a "Transaction". A Range Bar - a "Tick" - is a Price Increase or Decrease - a One Tick Price move - so they are TOTALLY different. On MultiCharts - which I use - they call a Range Bar - a Point Bar.

Appreciate your answer. I only played around with range bars, but
no serious structure to learn how they function.

I'm addicted to volume based bars. (Large volume)

 

[VSTscalper]

Appreciate your answer. I only played around with range bars, but
no serious structure to learn how they function.

I'm addicted to volume based bars. (Large volume)

See above - I attached a picture. I just took another picture - made the Candles brighter.

The Range Bars - are all the Same Size - except when the Market closes - a Bar may be smaller.

Edit: I just looked at my chart - and there were 2 - Head & Shoulder setups - in approximately 4 and 1/2 minutes - shortly before the close. See the Green Lines - that is the Potential Ticks available - although I only go for Two Ticks. This happens more often than you might think. Depending on how many Contracts you are Scalping - money - can be made. Of course - money can be LOST also. It is NOT as scary to trade this as a trader might think. It is all about having Strict Rules - on how to trade a Setup - and then actually - FOLLOW THE RULES. By the way - I look at Head and Shoulder setups - much different that the textbook way.

The Red and Green Dots - One Tick - Range Bar increments.