OAC

Yes, Waveslider, I am one paranoid nut I guess. The lower the time frame the more difficult it gets, and extremely competitive like the Indy 500 race I am watching now on this nice memorial weekend. Definitely not for the fainthearted.:o Also just beause I trade the short-term doesn't mean I don't trade longer term. Far from it, but my tiny drawdown on my long-term positions would be the envy of many large hedgefund managers.

I am afraid it is, but people will keep on hoping ........

Tim Morge, one of the top currency traders in the world for more then 20 years. Even back in the 80s, the Finance Minister of Germany and Japan would visit his office regularly , as descrbied in a recent article. Now he gives occasional seminars, and in between seminars and to this day, he would still practice trading on his simulators. Now I get the impression that some of you guys are taking the day off or playing video games during your downtime. Where is your work ethics ? Have you reached a plateau already ?

Any chance of doing a stop and reverse ?

Waveslider, I don't really trade the Wolfe Waves either. I do look at them among other things. I do look at tick pattern on the lower timeframe. I am somewhat secretive about what I do because it is too easy to find this site by doing a google. and you know how many hedge funds are out there . BTW, didn't you previousely mentioned you are related to a hedge fund of some sort? See what I mean /:haha: As far as the adrenaline of short-term trading goes, yes on somedays I am like a Top Gun pilot, give them everything but the kitchen sink. On other days i can simply choose to relax and just pick the low-hanging fruits.

There is a lot of Wolfe Waves on the intraday tick charts, sometimes 3 or 4 in a single day ! Lets say you only look at 60 minute charts or higher. You are lucky to see a handful in a month. So in the course of a year, guess who is going to be more proficient ?

I guess you don't look at the intrady tick charts. Like 200 ticks or less ?

Everyone was eager because the Fed came out at 2pm EST and spooked the market by hinting no more rate cut and possible rate hike is coming soon due to dramatic pickup in inflation

Can I make the assumption that you are not going to shell out $3000.00 USD for his course of instructions ?

If you extend line 2-4 and 1-3 into the future, they will intersect. Sorry for the confusion, but it is right out of Bill Wolfe's book. Think of it as two drunken sailors running into each other.

My opinion is you are much better off getting an excellent piece of software like FibonacciTrader by Robert Krausz and develop your own strategy. There IS nothing like having your own.

Additional Example of Three Little Indians:

As I have posted yesterday in the Live Trade section: http://www.traderslaboratory.com/forums/130/live-trades-3845-17.html and brought attention to the fact we were very close to the 200-day moving average of the S&P 500, a yardstick widely watched by the institutions. As you can see from the attached chart, we have problem closing significantly above it. If you do your homework every night, you would expect a tug of war around the 200ma and not be surprise by the price action yesterday.

OK, here is some candlestick analysis. In the attached5-min chart, it shows that if you missed the first move down yesterday, there was a wide range red candle where the top of the candle created massive resistance as indicated by the yellow horizontal line. Subsequently the market had big trouble going above it, then you could have shorted into the bear flag that is being formed.

Ahah ! I didn't realize it but you are the same guy who was spreading the crash rumors on the other thread. :o Yesterday's price action prior to the "2 pm crash" that you were addressing was a "three Little Indian" formation. Have you read Linda Rasche's book on this pattern ?

I have read both Crane's and Stevenson's work. BTW, this Stevenson guy is an electrical engineer. I don't recall them talking about "Inversion". Is this your own observation or is this part of the methodology that you are trying to described that is used by many technical traders ?

Spare time? How I envy you. :\

Waveslider: I understand (1) to (4) with no problem. It is a lot like John Crane's reversal Day Phenominum. However I am a little unclear about (5), can you go into more details ? Do you mean with an inversion that we can expect a textbook AB=CD pattern where the total length is increase by 50%?

Legendary commodity trader, Larry Williams said: "Dopes Hope and Winners are Spinners"

Sorry, some of the stuff are in the Premium section. Try this: http://www.traderslaboratory.com/forums/f6/trading-with-market-statistics-i-volume-1962.html Just to let you know that I do my own stuff and don't exactly follow the methodology as laid out by Jperl..

Yeah, 200 SMA on the S&P, a widely watched one by institutions.

Hey, we got a celebrity here ! HPT, you should check out Jperl's thread: http://www.traderslaboratory.com/forums/f67/jperls-trading-with-market-statistics-summary-3326.html And consider using the Standard Deviation Bands with the VWAP. You can get NinjaTrader which is free to hook up with your IB feed. And there is the code for the VWAP SD bands somewhere on the Ninja forum.(PM me if you can't find it) Fading at the 3rd SD band confirmed by other internals is a High-Probability Trade.

Firewalker: We don't have too many traders from Europe at the moment.. It looks like you can have the chatroom all to yourselves early in the morning. Just make sure that there is no spamming from commercial advertisers. Thanks

Hey guys, just in case you didn't know. We also have a chatroom here. Look on top of the page.

Actually I would be really surprised if you can get good results with back-testing of any of the patterns, which does not mean they can't be used as good tools by a discretionary trader. A lot has to do with the CONTEXT in which they are being used.