Discussion from Suri Duddella's Chat Session on Pattern Based Trading

[Soultrader 12]

This section is for discussion related to Suri's live chat session from October 24, 2008. Please feel free to discuss Suri's book and patterns covered in the chat session.

 

The official transcript can be found here.

[bakrob99 11]

Suri's discussion really got me more interested in formalizing some of these patterns which I have traded using rather different rules - still effective.

 

I am going to concentrate on 2 of then for now ... as I currently have AutoTraded Strategies trading breakouts and breakdowns; I don't need to do those on a discretionary basis.

 

I like the 2B and the A-B-C patterns... but I find the 610 tick chart a little quick for my liking so I am increasing the frequency a bit.

 

For A-B-C pattern recognition, put a PIVOT HIGH and PIVOT LOW showme with strength of 5 on the chart and get the pivots marked for you. Have the FIB tool ready... take the trade... hold for 100% for target 1 and try for 127% for target 2.

 

Once a TOP or BOTTOM is evident and you perhaps have managed to capture it using the 2B method, then trade in the trend direction for the A-B-C's

 

Good luck.