Technical pattern to recommend?

[lundy]

Quote from dan05:

Hi Lundy,

Do you scan with a automatic pattern recognition software? or you do it your self? If auto, can you recomend any soft?

I've always found partner recognition a very interesting approach to trading, but as I could never back tested it, I've switched to automatic trading based on system dynamics theories that for me where easier to back test.

Still I'm interested in any pattern recognition software you might suggest.

Thanks,

Dan

I dont use software to do the scanning. However, I have seen some interesting things with Neoticker's pattern scan. Also, if you can code, wealthlab has the ability. Funny thing is, I am using wealthlab for charts, and I can code pretty good, but I havent tried to automate the pattern recogonition. In my experience pattern recognition is much easier if you are analayzing a set of like 3-4 bars. It becomes increasingly difficult when it involves more bars.

I'll give it a shot tho, and let u know if I get anywhere.

 

[lundy]

here is something that I am in right now, hoping to see some potential upside.

ndaq daily chart

the green line is 68% something that I pay alot of attention to. If after the last circle, it closes above the 68% line, I think that gives it more credibility.


also, one big difference about my pattern and wolfewaves is that wolfe would have you enter trying to catch a falling knife. To me the reason I chose this pattern is that I usually enter above the 68% as I see this as a sign of confirmation.

 

[Tyren]

I took the Wolfe wave chart posted on this topic and did put on my stuff :
http://www.aksjeinfo.com/ubb/Forum1/HTML/000156.html

I studied Wolfe wave som years ago, but did find it hard to use. It might have a positive edge.

 

[nkhoi]

Quote from lundy:


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Attachment: ndaq.jpg
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look like 5 waves down and now a,b,c chop waves before a turn around.

 

[murray t turtle]

Quote from btu12345:

hi I'm a swing trader, ranging from 2 days to 1 to 3 weeks the most.

Have been up from 10k to 16k in 1 year. Till stupid June and July comes... Now down to 11k. Reducing my exposure now, no margin, all cash.

I have been using relatve strength to make from 10k to 16k, meaning if market fall, the stock hold well, i buy. So bull market is fine. But when Bear market comes, i see this stock holds well during bear market, so i buy. But when bear market goes up, my stock falls!

Unlike bull market, when stock falls, this stock with relative strength stays, if market up, it will go up.

So now using technical analysis instead to play swing, anyone want to recommend any good pattern to play?

==========
BTU;
Oil gas sector is nice persistant uptrend, most are NOT;
recommend you specialize in a few derivatives or stocks/sectors, rather than just one pattern.

Also learn to short if you dont know???;
DIA,SPY have spent most of time since mid May below 50 day moving averge, bear market or weak bull at best.

Dont really care whether it a bull or bear;
much rather figure if its short,med,long term uptrend or downtrend,
much more precise/helpful .
Hope this helps

 

[lundy]

Quote from nkhoi:

look like 5 waves down and now a,b,c chop waves before a turn around.

i dont know much about ewave but my problem with comparing waves in 2 seperate stages of a stock, ie trend and chop, are that the size of the waves are relative. Like if you look at that chop, its possible that the abc already ended and headed for more down, or if you zoom out a little bit, its only done a and b so far.

 

[nkhoi]

Quote from lundy:

i dont know much about ewave but my problem with comparing waves in 2 seperate stages of a stock, ie trend and chop, are that the size of the waves are relative. Like if you look at that chop, its possible that the abc already ended and headed for more down, or if you zoom out a little bit, its only done a and b so far.

if 30 hold, then it may b/o, fed cut start taking effect?
http://stockcharts.com/h-sc/ui?s=ndaq

 

[Li Ka Shing]

I think one of the good ones is the W.

Sometimes when patterns are developing midway, it's hard to tell whether they will become a certain pattern or fail and not materialize like the pattern you imagine.

For W, once the W has shown, then it's W already, wait for the pullback for the W handle then go long for the runup.

I think it's one of those patterns which give you more 'confidence' because the pattern recognition can be done after the full W letter is shown, and then the trade can be done on the aftermath pullback and runup. At least this is less dificult than trading on developing patterns.

 

[4re]

Check out this website. Thomas Bulkowski's book are great with a lot of research behind every chart pattern. I have traded the High Tight Flag several times as well as regular flags they do work well in Bull and Bear markets if you will wait for a definite breakout of the flag.

http://mysite.verizon.net/resppzq7/index.html

Hope this helps,
4re

 

[lundy]

Quote from nkhoi:

if 30 hold, then it may b/o, fed cut start taking effect?
http://stockcharts.com/h-sc/ui?s=ndaq

I think this is a great opportunity to buy this stock. I had bought the sep 32.5 calls for .20 and sold half of them at .65-.75

Now that they are back down, I think the same thing will happen where they triple.

I also got into LSI, which is the same pattern, I posted a pic of that on my journal. However, I will be much more comfortable holding LSI for a while if it pokes above 8.22 again.