Trading the Pivots
- Thread starter JimmyJam
- Start date
Does it? I've never seen much value in those kinds of japanese candlestick patterns in an intraday context. They need a real open and a real close, a time when the rice merchants have to actually close shop and go home with existing positions. one day candles can tell me something, weekly candles even more so. Intraday I still display candlesticks when I look at charts, but just because they are easy to read - not because I expect a "three black crows" pattern to mean anything.
Taking a trade that is based, just because there is a certain candle is inappropriate, I agree with you, especially intraday, but their presence can add to other indications that one might be seeing, therefore it is a Yes and a No, depending on how you treat them. I did say "adds" to your signal, also that was on a 240 min TF.
Observation: just because you don't see the value doesn't mean it is not there.
I can assure you there is value and many traders benefit from it. If you want to learn more I suggest you read some Nihab threads. The "ET Master of Candlestick Analysis" IMHO.
Perhaps people get too hung up on the pattern rather than the underlying 'sentiment' that the pattern represents. Its just another way of looking at price action.
What I see in romiks chart is price in a small boxy range the top is tested and that price is quickly rejected. I guess some people might call it a hanging man doji or something.
Cheers,
nick.
What I see in romiks chart is price in a small boxy range the top is tested and that price is quickly rejected. I guess some people might call it a hanging man doji or something.
Cheers,
nick.
A couple of points:
1. Just because a technique or tool may not work for you doesn't mean it doesn't work for someone else. Most traders who have tried something and can't get it to work for themselves assume incorrectly that it doesn't work.
2. All tools or techniques are essentially meaningless if you don't understand the price action. Develop you thinking abilities first and foremost. You want to think deeply about what the price action on the chart means:
Who is winning, who is losing and why?
At what point are they likely to switch sides on each other?
Who is confused?
What will cause them to change their minds?
When will they quit?
Cheers.
The Week in Review
While our results last week were certainly less than stellar, the trading model is still net positive, and we've learned a few things from our experiences, eh?
While the actually methodology that I'm using to enter trades will require some modification (don't like consistent losers, period)
, the Pivot Trend model correctly called the downturn in the markets (shifting from Bullish, then to Neural, then to Bearish).
Hope you're keeping track of the most salient points of this excersie folks, I know I am.
Current Pofit/(Loss): 13.50 pts. over a two week period. Not bad, but can do better.
Best Regards,
Jimmy Jam
While our results last week were certainly less than stellar, the trading model is still net positive, and we've learned a few things from our experiences, eh?
While the actually methodology that I'm using to enter trades will require some modification (don't like consistent losers, period)
, the Pivot Trend model correctly called the downturn in the markets (shifting from Bullish, then to Neural, then to Bearish).Hope you're keeping track of the most salient points of this excersie folks, I know I am.
Current Pofit/(Loss): 13.50 pts. over a two week period. Not bad, but can do better.
Best Regards,
Jimmy Jam