Yes, if I like the R/R of the trade. A trade can be counter trend to a higher tf as long as the corrective move has room.
Ross Hooks (or other patterns) entries based off of stop loss distance
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%%He's published several different ways of identifying trends, in various books, over the decades, and I can never remember which is which, now.
One of Jack Schwager's interviewees describes, in one of the Market Wizards books, a neat way of identifying a trend, the spirit of which - if not the exact technique - rather encapsulates my own attitude to them: print off the chart on your screen, pin it on your wall and stand ten feet away from it - if you can see a clear trend at that distance, then there is one; if you can't, there probably isn't.
(You can also identify trends for potential Ross-hook-entry purposes by indicators, if you wish. An example: bearing in mind that a trend exists only within a specific time-frame, and that it's normal for an instrument to be trending in one direction within any specified time-frame while either ranging or even trending in the opposite direction in a different time-frame, draw 15-period and 50-period simple moving averages - if the fast one is above the slow one and both are rising then there's an uptrend within that time-frame; if the fast one is below the slower one and both are falling then there's a downtrend within that time-frame; if neither applies, then there isn't a trend within that time-frame. And you can even substitute the addition of a "higher time-frame" by adding 60-period and 200-period averages and looking at those two as well, thereby taking only trades that are also in accordance with the "higher time-frame trend", but doing it all on one chart - that's a perfectly workable substitute for the method recommended by Marcel Link in his classic book High Probability Trading. Ultimately, though, one can take this too far: the more "confirmations" you require, of course, the lower your trading-frequency becomes, albeit with a higher overall strike-rate.)
I avoid trading hooks in congestion, certainly.
And I close trades that run into congestion (I can always re-open the position later, which I then think of as a Volman-style "box breakout").
I do - but not here: my copy is actually in another country at the moment, sorry!
I don't think it's necessary to follow Ross's (or anyone else's) definition of "congestion" to the letter, anyway (I know he describes it in accordance with numbers of bars, and differentiates between "congestion" and "consolidation" this way, too), as long as you know congestion/consolidation when you see them - but this isn't too difficult?
Sorry, probably not a particularly helpful response.
That still works,Xela; 10 feet= to id a trend.
I remember that Jack Schwager question;
it would work @ 7 feet, also, even though many charts like that would /could have some moving averages on them, which means plenty of lagging data
Everything on a chart is lagging, including price. People typically run into problems with derivatives because they use them as signals. Ken "Woodie" Wood and his followers are the extreme of this as they use the CCI exclusively in absence of price. Some of us use them to filter and support price action decisions. There are really only two ways to trade, the right way (profitable) and the wrong way (unprofitable).%%
That still works,Xela; 10 feet= to id a trend.
I remember that Jack Schwager question;
it would work @ 7 feet, also, even though many charts like that would /could have some moving averages on them, which means plenty of lagging data
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Never heard of ''CCI exclusively, in absence of price''; but that would not work anyway, no broker pays on CCI, they pay on price+ volume.I havent used all brokers,
but all of them want a price... or market order+ volume LOL. As far as using CCI, automatic or with discretion,more than price ,anything could work ,if one was determined to get out early+ was good with trends.I accidently got out late , later than i meant to,not to long ago, entered wrong limit order,CCI could have worked well then, but i was not using it then, so it may have worked well then ??NOT against CCI ;
LOLNeedless to say, they need a price level to enter and exit but the premise is the signal comes exclusively from CCI patterns and not from price action. I remember about 16 years ago or so, I had some curiosity about the CCI and spent a little time in Woodies chat room. It appeared to me as he didn't practice what he preached as while he noted the CCI pattern as reason for taking the trade, his explanations included PA rationale. In short, he told his students to avoid having a price chart but it certainly appeared as though he relied on one.%%
Never heard of ''CCI exclusively, in absence of price''; but that would not work anyway, no broker pays on CCI, they pay on price+ volume.I havent used all brokers,
I accidently got out late , later than i meant to,not to long ago, entered wrong limit order,CCI could have worked well then, but i was not using it then, so it may have worked well then ??NOT against CCI ;
I always thought of his approach akin to driving a car by avoiding looking out the windshield and relying exclusively on mirrors. If I recall correctly, they may have entered and exited on a price ladder based on the what the CCI was doing.
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LOL
I'm against driverless cars, even if they become common. BUT could be a good thing for insurance co, one had an accident , think it was a transfer truck with a sky colored truck/trailer.
Even though i dont use bar charts much @ all IBD does, so never say never, about something like that.Stopped clock could be used once a day or every 7 years LOL