There's that pattern again
- Thread starter PoundTheRock
- Start date
Hi Cathy and inandlong:
I had a few too many margaritas tonight (that's what happens when you make 87K in one day), so I'm feeling loose and relaxed and want to explain this pattern more for you since you seem so overwhelmed by it, but please... I beg you, try not to miss it again because it happened today. Yup, it did (see attached).
What are we looking for? Well, one of the more astute posters already mentioned it, but here's a little more detail. You're looking for a test of a previous bottom (usually a couple of hours later and in the afternoon), usually accompanied by a higher reading of the $TICK reading (you can look that up in Street Smarts). As illustrated by the highlighted circles, you're looking for a reversal bar back above the horizontal line. Trail the buy with Wilder's Parabolic or something where you can protect your profits, or hell, just hold to the close. Seems like a pretty good reward/risk, no?
I might also point out those dotted horizontal lines: think opening range and sell/cover targets. Those numbers you see at the close of each day? Well, that's just pure magic, but it can be figured out... unless of course you're distracted by other things such as a high post count or proving that a woman really can trade (funny I haven't met a woman that runs a hedge fund yet). But of course, you'll always hear that "women make better traders". What a crock!
I had a few too many margaritas tonight (that's what happens when you make 87K in one day), so I'm feeling loose and relaxed and want to explain this pattern more for you since you seem so overwhelmed by it, but please... I beg you, try not to miss it again because it happened today. Yup, it did (see attached).
What are we looking for? Well, one of the more astute posters already mentioned it, but here's a little more detail. You're looking for a test of a previous bottom (usually a couple of hours later and in the afternoon), usually accompanied by a higher reading of the $TICK reading (you can look that up in Street Smarts). As illustrated by the highlighted circles, you're looking for a reversal bar back above the horizontal line. Trail the buy with Wilder's Parabolic or something where you can protect your profits, or hell, just hold to the close. Seems like a pretty good reward/risk, no?
I might also point out those dotted horizontal lines: think opening range and sell/cover targets. Those numbers you see at the close of each day? Well, that's just pure magic, but it can be figured out... unless of course you're distracted by other things such as a high post count or proving that a woman really can trade (funny I haven't met a woman that runs a hedge fund yet). But of course, you'll always hear that "women make better traders". What a crock!
Kicking got it.
Average volume and 1-minute chart.
Very sophisticated!
Quote from axeman:
Gee... and I thought it was just a simple double bottom
with a good risk to reward ratio
peace
axeman
You're right axe - I went a little overboard. You know that book Investment Secrets of a Hedge Fund Manager? Well, the authors didn't mention the biggest one. Find a good manager, and get him drunk so he spills the beans. Recommended especially for savvy female trading assistants.
Continued good trading to you, and let's circle back after the next round. Some parting thoughts:
1. A system can't see what we see. Teach your systems to see what you see.
2. Your experience in the market will converge towards the actual behavior of the market.
3. I get a funny feeling in my stomach when the market turns. Physical symptoms are turning points (e.g., Soros's aching back), and these symptoms translate into trading rules / behavior.
4. I can show you a pattern that's worked every time, exactly 6 times, in the past 8 trading days. Show someone that pattern, and I'll show you a numbskull that didn't trade the pattern after seeing it every time.
PTR
