Joe Ross Methods

[snp500]

Quote from marxdhr:

Has anyone out there learned Joe Ross's trading methods and traded with them successfully? I keep testing out his methods, mainly Ross Hooks and ledges, and the various filters he discusses in the books (although he does not necessarily recommend them), and the patterns still seem difficult to apply in a profitable trading scheme and can at times have high failure rates. Any comments, tips, filters, etc. for trading with his methods would be appreciated

Not to take this too far off-topic, but the key is to understand the basic concept of Brownian Motion.

The underlying that 'perturbs' prices -- that are seemingly chaotic -- is volume and order flow. Understand this and you'll understand why prices do as they do.

Don't believe me? Step a random number generator in Excel and create a graph. Notice how similar it is to actual market charts. There is a major difference in the markets though and that is the existence of volume.

 

[cgeorgan]

Quote from snp500:

Not to take this too far off-topic, but the key is to understand the basic concept of Brownian Motion.

The key to what?

 

[snp500]

Quote from cgeorgan:

The key to what?

The original poster is looking for answers regarding successful trading methodologies. I made a suggestion for the OP to look one-step further than standard price patterns.

Everyone is different, but in my personal experience, most successful traders that I have come across over the past decade have a very strong understanding of volume. Thus, I suggest it is key to understand Brownian Motion because it provides an academic framework and its models are applicable to the markets.