waveslider

here're the rules: 1. draw a line from the bottom of the trend to the top of the trend. (uptrend example) 2. shift line horizontally so that the bottom of the line aligns to the date (time) of the price peak. 3. This line gives the support, and also tells you when time has run out for the trend to continue. 4. If price exceeds the previous peak you used for the top of the trend, the the trend is still active and a new line will be necessary when a pullback begins. This idea is probably from Michael Jenkins - an incredible mind with charts - though I've never seen any of his ideas quantified. If they have been you can bet that the trades are not shared!

There is a method that I know of that uses this. They are used - but not how you are using them. There is value to what you did, you showed the price destination according to the "normal" retracement in a down trend. My x-y lines were just channel lines, that have a timing aspect. This is not my original idea either, I think JR stevenson wrote a book about it. I'll send an example of what something using the lines as you described them taz, to show support/resistance. In the mean time -this market has hit its target area. There is a chance a major rally could ignite from here - and the andrews line would have pointed to the halfway mark. So next stop is the upper fork line. That remains to be proven. I'm still looking at inter market relationships to give the clues - especially the russell vs. s&p

This is too perfect - -where is the fakeout, or was it the gap on friday? Try the fork out that I posted on the SPY a week ago - its just too perfect. If we shoot above the fork there could be a great momentum long trade, but for now, this thing is headed south.

maybe you could do a counter and have it stop plotting after 10 bars.. that or you could use an array, which would have been the proper way to do this indicator in the first place - I didn't know how to do arrays then - now I do thanks to blueray..

I have had this one on SPY for a while. I find it significant that the center line acts as support on one side, then shoots through the gap. On the other side the first peak fell short. I am expecting price to somewhat overshoot and hit the channel line (gold on this chart). Monday should be watched carefully, I expect the potential for a short to show up in the next 3 days. Best clues will be divergence in market internals, and particularly the participation of the nasdaq which has shown much more strength than any other (probably due to financials). I think the pitchfork on the Russell will be hit right on - in an area of critical resistance. Then we should have a nice ride back down to fill the gap created on Thursday...

Leo Kottke is one of my guitar heroes - demonstrating that the rest of the band is unnecessary.

Excellent post, thanks Dr. Lo

All of this "in charge" is related to your trading time frame and the trend of the time frame you are looking at. I found this product, which seems to be a much superior way of expressing the concept that Urmablume is working toward. http://codefortraders.com/Tradestation/Indicators/BidAskDelta.htm opinions?

Hi David, You are correct, the larger pattern is and was the pattern we were discussing / trading. The one you noted is not a correct WW pattern. Go back and study the pattern to get it right, and just keep looking at charts. For a bearish pattern, the pt #3 and #5 should be above pt #1. Feel free to post any chart you aren't sure about and we can discuss..

Sorry for the low humility on the last post, I was having a good day.. Thanks Suri, I especially like the momentum on the move from pt. 4 to pt. 5. Also, if you zoom out you see that pt #1 is at the 50% level of the total down move. I've noticed that's important. Look how the 1 - 4 line is touched 3 times on both side, on the far side just perfectly.. That's a nice one. This market is not a mean reverting market, meaning, it trends hard on the daily charts - will stay overbought/sold for a while. The trick would be finding a low risk entry, which you'd have to try for on the intraday charts.. Nice chart Suri - thanks.

Thanks DB, I like to collect chanterelle and other mushys on the island, and its always a little tough to get the nice crispy texture in these mush. because there is so much moisture in them. I agree about starting out dry. I will normally cook these at a medium high temp till it looks like I have cooked out the water. Then I put a little vinegar, nothing too strong - red wine vinegar is good for those portabello. Add some garlic here. No oil yet - you want the mushys to soak up the good stuff now that they don't have water in them. Fry them on high heat with some oil. I'm always looking for good constructive criticism/suggestions (as with trading)..

I think OAC (who is normally - healthily - skeptical) might have been turned off by your use of "we". Maybe also by so many buzz words back to back - harmonic trade flow Is that the "royal" we? Are you just the bagman (Lebowski quotes, sorry)? How is "trade intensity" any different from using a simple tick or volume share chart? We are all welcome to new ideas, especially on this forum, if they are not accompanied by hints of vending (proprietary formulas, etc.). Most traders here are past looking for the holy grail, so we are talking about concepts - not specifics. For example - most of us don't care if you are smoothing with Jurik or Buckwheat's hyper adaptive fractal diffusion index - it's immaterial. "... This confirms that indicators with price as their only input have a natural lag and that it is buying and selling that motivates price. Our experience tells us that the best indicators of price usually don't have price as any part of their calculation." these are valid ideas. can you bring something to the table to further explain or quantify reasons why your method is valid?

oh yeah, I had 5 on. If it takes out this 885 area then it could go all the way down to the lower tine line at 840 area...

So does think or swim allow you to backtest options strategies? I went to their site and it doesn't look like it. Does anyone have any recommendations for this? I am looking at Optionvue, haven't found much better...

That 2nd chart looks more dangerous because at that pt the market is starting to trend. Point #2 should be a major low. We're looking for a quick move back into the range on this one -else a trend could develop. The pitchfork I was talking about is on the half hour chart or higher.

I've been watching that too. The higher time frames have an andrew's target a bit lower so it looks like it would take out today's lows. I was thinking this sort of thing might happen as they started rallying it this p.m. Look at how the 1-4 line is touched 2x on both sides of the pattern. You can see it on bubba's chart, but even better on the 1 or 2 min.

Play guitar! or read, play with my daughter, garden, fix surfboards, chop wood...

Each time frame should have a function for the trader. Otherwise the trader will drive himself crazy with info overload and second guessing. I use 3. The highest is for general direction and to gauge what "type" of trade - breakout or pullback - depending on trend vs. range. The middle is for reference as to where we are in the larger trend. Here is where I look for patterns that confirm the higher time frame. the lowest is for precise trade entry - and where stops would go - in order to keep risk low. hope that is on topic, and helps someone.. ws

The level of maturity that women bring to the markets is much needed, Susana is a good example. It seems to me that many qualities innate to women are essential to trading, including intuition. Not arguing with the market either.

Good answers - and I agree that you can't trade purely off of internals. They are to be used for confirmation. You can't manipulate 2000 stocks at once, and that is why it is difficult to hide action in the internals - hence their value. Here is a look at my internals page from yesterday. The afternoon rally was a dead give away, it put the cream on my month. 1st pane is A/D for the russell 2nd is ES 3rd is ES vs. $Rut 4th is adv volume vs. decl volume in russell 5th is russell tick personally I made $ off of SPY calls on the fade at 12pm (pacific), also long positions in ES. You may want to investigate calls as a vehicle, I think as a reversal trader they would work well for you, but then again I don't have too much experience with options. Notice how the a/d was breaking to new levels as the Es was hitting the bottom of the channel. Positive volume was rising. Russell outperforming. Tick advancing.

I'm the one of the ones stopping you out of your reversal pattern (had to say it). "For what is worth I have found the following to be useless. * - Market Internals * - Indicators or its respective divergence * - Other e-mini correlation " Inter-market relationships happen all the time and if you stick with one or a few, you get to know them pretty well. If you trade ES, it is a good idea to watch the bond market - they are normally inversely correlated. Lately they have been out of step. Personally I use the internals for the Russell 2000 because, obviously, there are 2000 stocks there, also because small caps are more sensitive to market environment. Don't write off the internals (or anything for that matter - closed minds are like parachutes). I suspect that the answer to your question lies in money management and trade management mostly. Maybe you don't take enough break even trades? They're my favorite.

Multiple time frames, and usage of tick or share volume charts can revolutionize your trading.

I see WW as more of a set-up than an actual trade. If I see the bigger pattern then I will trade around that pattern. If you were using tick charts, small intervals, that would be different.

I see things I designed years ago (that don't work very well) that people are still trading and posting. This business is sleazy and unfortunate... Ropulos is the lowest of the low. PS anyone looking for the magic indicator - it doesn't exist.

I get it so you are looking for confirmation of a ww with a gartley pattern as target for point 5, right?