[Soultrader]

This is a transcript from October 24, 2008 with Suri Duddella, author of "Trade Chart Patterns Like The Pros".

[16:10:40] suriNotes: Thanks all for attending my presentation/chat session
[16:10:41] Soultrader: http://www.traderslaboratory.com/web...TL_Oct2408.pdf
[16:10:44] Tasuki: pity
[16:11:07] suriNotes: I'll be typing some of my presentation... so pl. bear with me w/spellings etc
[16:11:20] Tasuki: s'OK, suri
[16:11:25] suriNotes: The presentation is about 60 slides and I'll try to be fast
[16:11:32] suriNotes: we will cover in 45-60m
[16:11:40] suriNotes: and then I'll answer any questions you may have
[16:12:03] angelaktariel: sounds great Suri
[16:12:04] suriNotes: Some of you know me form my book and other presentations
[16:12:14] suriNotes: but I'll give a brief introduction in the presentation
[16:12:34] suriNotes: I'll be calling for the SLIDE page []
[16:12:44] suriNotes: and then go on presenting
[16:12:54] suriNotes: Do all of you have the Presentation?
[16:12:58] suriNotes: http://www.traderslaboratory.com/web...TL_Oct2408.pdf
[16:13:02] simb11: yes
[16:13:07] suriNotes: gr8
[16:13:07] stanlyd: y
[16:13:08] myrtleturtle: y
[16:13:14] Tasuki: y
[16:13:16] quintadocedro1: y
[16:13:21] dona: y
[16:13:23] suriNotes: I'll be answering your questions in the end since it may be reading/answering
[16:13:24] theman: y
[16:13:26] angelaktariel: yes
[16:13:28] innovation: y
[16:13:33] simtrader: y
[16:13:39] Chriseberly: yes
[16:13:51] suriNotes: Before I move further, pl. read the disclaimer
[16:13:54] mdhanafi68: yes.
[16:13:57] suriNotes: slide [2]
[16:14:09] angelaktariel: y
[16:14:16] Tasuki: y
[16:14:17] theman: u
[16:14:19] theman: y
[16:14:22] suriNotes: Slide[3]
[16:14:27] suriNotes: Agenda
[16:14:47] suriNotes: Briefly, I'll introduce myself, My Trading Methodolgy, research
[16:15:04] suriNotes: Then I present Overview of Entries/Exits in Pattern trading
[16:15:12] suriNotes: I'll list TOp 10 Patterns
[16:15:26] suriNotes: And then I present two of the TOP 10 patterns
[16:15:39] suriNotes: I will conclude my presnetaiton with Book Review
[16:15:44] suriNotes: my book review
[16:15:58] suriNotes: Slide[5]
[16:16:19] suriNotes: I am sure most of you know.. I am a Chart Pattern Based trader..
[16:16:28] suriNotes: Have been trading for about 13+ years Full time
[16:16:46] suriNotes: Slide [6]
[16:16:57] suriNotes: I have listed all presentations/articles etc
[16:17:07] suriNotes: I'll skip this slide but
[16:17:22] suriNotes: pl. take a note of my interview in S&C (sept. 08)
[16:17:32] suriNotes: it does cover two of the patterns I am going to discuss today
[16:17:44] suriNotes: Slide[7]
[16:17:48] suriNotes: Slide[8]
[16:18:09] suriNotes: I trade EminiFutures, @ES, @YM, @NQ...
[16:18:17] suriNotes: I am a short-term trader in Eminis
[16:18:32] suriNotes: I use 610Tick, 5m and Daily charts to identify my patterns
[16:18:33] suriNotes: and trade
[16:18:39] suriNotes: I also Trade Equities
[16:18:52] suriNotes: Mostly Swing Trading.. Overnight positions to few days
[16:19:06] suriNotes: Slide[9]
[16:19:19] suriNotes: My trading is discretionary
[16:19:28] suriNotes: I have strategys in TS
[16:19:47] suriNotes: But all of it is based on Technical Analysis
[16:20:02] suriNotes: I use Bar Charts, Renko/Range Bars
[16:20:12] suriNotes: Purely Price-Action/Patterns
[16:20:41] suriNotes: Also all of my theories are self-buit, tested
[16:21:00] suriNotes: Slide[10]
[16:21:27] suriNotes: I spend about 12 hrs daily building trading plans, writing journals and Trading
[16:21:41] suriNotes: I also post all my trade setups, ideas to my website
[16:21:53] suriNotes: my trading platform: tradestation
[16:22:01] suriNotes: Slide[11]
[16:22:20] suriNotes: Here is how my Trading Day looks
[16:22:33] suriNotes: just briefly...
[16:22:41] suriNotes: I do not trade Equities Intraday
[16:22:53] suriNotes: I only trade Futures from 9-3pm
[16:23:05] suriNotes: I stop trading 3pm ET Futures...
[16:23:22] suriNotes: then I start looking at equities for potential Setups/Trades
[16:23:30] suriNotes: to keep Overnight to few days
[16:24:08] suriNotes: Also, after 3pm.. I never trade Eminis
[16:24:27] suriNotes: Historically my biggest losses came after 3pm in Emins.. hence I avoid
[16:24:38] suriNotes: Most losses also came after 3pm in SHORTS
[16:25:06] suriNotes: IN equities, I take New Positions from 3pm..
[16:25:18] suriNotes: Recently I avoided most days
[16:25:26] suriNotes: equities
[16:25:39] suriNotes: Slide[12][13]
[16:25:52] Soultrader: http://www.traderslaboratory.com/web...TL_Oct2408.pdf
[16:25:54] suriNotes: Overview of Entries/Exits...
[16:26:01] suriNotes: Thanks James
[16:26:33] suriNotes: I think every trade should have these 4 Key concepts..
[16:27:00] suriNotes: Before any trade is taken, you must know your Framework
[16:27:22] suriNotes: Frmae Work consists of your Time-Frame, Your Trading Time Zones
[16:27:48] suriNotes: For example.. My Best Trading is in the first few hours from the open
[16:27:56] suriNotes: my worst trading is hte Last hour
[16:28:28] suriNotes: Once you know your trading time zone.. You should stick to it
[16:28:42] suriNotes: @ REASON to TRADE
[16:28:49] suriNotes: You must have a reason to trade..
[16:28:57] Tasuki: why is last hour worst?
[16:28:58] suriNotes: A Setup, Pattern or Indication
[16:29:31] suriNotes: Many traders trade because of some momentum or Hunch, News or Random twitch of hand
[16:29:48] suriNotes: Boredom is NOT a reason to trade
[16:30:02] suriNotes: Trading tests everyone's patience
[16:30:11] suriNotes: @Execution
[16:30:34] suriNotes: you must plan your trade well
[16:30:52] suriNotes: Trade entries based some trigger conditions and exits based on targets/stops
[16:31:14] suriNotes: Know your platform and nuances very well..
[16:31:20] suriNotes: must have a backup plan
[16:31:29] suriNotes: @@ Management
[16:31:48] suriNotes: Know your Limits with your SIZE, STOPs, Targets
[16:32:12] suriNotes: it is a much larger topic and varies for everyone
[16:32:45] suriNotes: Slide[14] .. skipped
[16:32:58] suriNotes: Slide[15].. A Planned Entry Leads to A Planned Exit
[16:33:11] suriNotes: Slide[16]..
[16:33:23] suriNotes: Here I am going to present some of key Entries/Exits I use
[16:33:36] suriNotes: And then I will present each in detail
[16:33:56] suriNotes: Slide[17]
[16:34:14] suriNotes: Most of patterns present great entry techniques
[16:34:24] suriNotes: Here I present how I use a 2-Bar High
[16:34:26] suriNotes: as Entry
[16:34:38] suriNotes: See the pattern on left
[16:35:04] suriNotes: once hte pattern is complete, I look to enter few ticks above 2-Bar High
[16:35:15] suriNotes: I'll explain [few-ticks] soon
[16:35:27] suriNotes: Also on the right
[16:35:46] suriNotes: a 2-Bar Low - fewTicks for bearish pattern
[16:36:00] suriNotes: Slide[18]
[16:36:21] suriNotes: Swing High/Swing Lows as the entry techique
[16:36:31] suriNotes: again I use [few-ticks] above SH/SL
[16:36:43] suriNotes: Slide[19]
[16:37:08] suriNotes: Entry is based on Breakout/BD bar's High/Low
[16:37:17] suriNotes: See the Green Bar .. Breakout bar
[16:37:28] suriNotes: Most traders try to enter on this bar
[16:37:41] suriNotes: this bar could be a *Fake Bar*
[16:37:52] mong: does that keep you out of false breakouts?
[16:37:58] suriNotes: so, wait for price to trade above the B/O bar + [few-ticks]
[16:38:07] suriNotes: yes. mong
[16:38:17] suriNotes: Slide[20]
[16:38:30] suriNotes: Entry.. Certain patterns require
[16:38:36] mong: nice example. tx.
[16:38:39] suriNotes: confirmation that the pattern is Complete
[16:38:56] suriNotes: for example.. Here the X5 or Gartley type patterns
[16:39:11] suriNotes: Confirmation comes when price start displaying Wide-range bars
[16:39:28] suriNotes: When price trades WR bar High or Low
[16:39:39] suriNotes: that would be entry
[16:39:55] suriNotes: Slide [21]
[16:40:14] suriNotes: the concept of [few-ticks]
[16:40:33] suriNotes: it is popularized by Toby Crabel in his book
[16:40:54] suriNotes: I compute a 10 period RangeBreakout value
[16:41:09] suriNotes: the Minimum distance of Open to High and Open to Low
[16:41:19] suriNotes: 10 period average of it
[16:41:35] mong: nice.
[16:41:37] suriNotes: usually for Emini Futures it is 1-2 ticks
[16:41:46] suriNotes: so, I use High + ORB to enter to trade
[16:41:50] suriNotes: or Low - ORB
[16:41:55] suriNotes: it is a simple math
[16:42:09] suriNotes: Slide [22]
[16:42:12] suriNotes: Exits
[16:42:21] suriNotes: Exits also MUST be planned
[16:42:40] suriNotes: Usually you have plenty of time before [ENTRY]
[16:42:53] suriNotes: once you are in a trade.. You have less time to plan [EXIT]
[16:43:04] suriNotes: hence, both needs to be planned ahead of the trade
[16:43:11] suriNotes: easy to say than done
[16:43:30] suriNotes: But use Fib. Levels, ATR levels, Bar Sizes to exits
[16:43:39] suriNotes: Slide [23]
[16:43:48] suriNotes: Key supp , levels...
[16:43:54] bakrob99: do you consider the Risk-Reward before taking the trade?
[16:43:55] suriNotes: I use 21, 89 XMAs
[16:44:02] suriNotes: not in scalps
[16:44:08] suriNotes: for Equities yes
[16:44:20] suriNotes: Also use SH/SL, TrendLines
[16:44:25] suriNotes: For Eminsi
[16:44:35] bakrob99: do you base your stop then on ... say an ATR?
[16:44:38] suriNotes: Pre. Day High/Lows, GBX Lows/Highs
[16:44:50] suriNotes: do act as S/R
[16:45:06] suriNotes: bak.. some setups have ATR based..
[16:45:25] suriNotes: Slide [24]
[16:45:25] bakrob99: k .. thks
[16:45:30] suriNotes: I use Fib. Numbers
[16:45:38] suriNotes: Fib Levels
[16:46:00] suriNotes: more in the pres.
[16:46:09] suriNotes: Slide [26]
[16:46:21] suriNotes: has a small video on Tools I built
[16:46:35] suriNotes: we can see after presentation
[16:46:49] suriNotes: Slide [27][28]
[16:46:58] suriNotes: Here is a List of Top10 Favorite patterns
[16:47:13] suriNotes: My book covers 65 patterns with detailed Entry/Exits and Stops/Targets
[16:47:22] suriNotes: I'll give a brief overview at the end
[16:47:30] suriNotes: Slide [28]
[16:47:35] suriNotes: Pattern Trading
[16:47:58] suriNotes: atterns MUST be Mastered before TRADED. If you do not know the RULES of a PATTERN formation (Location, Type, Size) and ENTRY/STOPS and TARGETS, you have NOT mastered it and do not attempt to trade it just because you have seen somewhere...
[16:48:10] suriNotes: P
[16:48:28] suriNotes: Pattern TRADING =============== ** There are NO Perfect Patterns ** All Patterns FAIL, Key is to KNOW when to trade them and when to 'Avoid' them ** There is NO single pattern which is a HOLY GRAIL ** Patterns must be CLEARLY visible... DO NOT GUESS or FORCE a Pattern
[16:49:05] suriNotes: Slide [29]
[16:49:16] suriNotes: My favorite Top 10 Patterns
[16:49:27] suriNotes: 1. ABC 2. Trader Vic's 2B 3. Gartleys (all 5 point Harmonic Patterns) 4. Pivot Trading (OpenRange and FibZone Pivots are my favs) 5. Fib. Bands 6. Flags/Pennants/Wedges 7. Triangles 8. Fib Clusters (Only Trends) 9. Double Bottoms/Tops 10. Dragon
[16:49:49] suriNotes: I'll present TOP 2 patterns now
[16:49:59] suriNotes: Slide [30]
[16:50:07] suriNotes: Slide [31]
[16:50:23] suriNotes: Trader Vic's 2B
[16:50:38] suriNotes: This pattern is one of most favorite pattern
[16:50:54] OAC: Walter's
[16:50:58] OAC: m, W
[16:51:10] suriNotes: It is presented in Trader Vic's (Vicotor Sperandeo)
[16:51:13] suriNotes: 's Book
[16:51:24] suriNotes: Principles of Professional Speculation
[16:51:36] suriNotes: Yes, it is a Double Top/Double bottom
[16:51:43] suriNotes: Irregular
[16:51:51] suriNotes: But most DT/DBs are irregular..
[16:51:58] suriNotes: very rarely Bottoms/Tops match
[16:52:11] suriNotes: Slide [33]
[16:52:22] suriNotes: 2B Top
[16:52:39] suriNotes: On left you see a steep uptrend a make a New High
[16:52:54] suriNotes: followed by some retracement [needs 6-8 bars]
[16:53:04] suriNotes: then an attempt to breakout of the new high
[16:53:19] suriNotes: Mark the Bar Which tries to breakout
[16:53:26] suriNotes: Mark the Low of the Bar
[16:53:29] quintadocedro1: 5 min or 610 tick chart
[16:53:40] suriNotes: any tf
[16:53:53] suriNotes: when there is NO follow thro'
[16:54:08] suriNotes: and price reverses and close below the Marked Low
[16:54:16] suriNotes: That is the SHORT trigger
[16:54:30] suriNotes: Short LOW - [ORB] explained before
[16:54:34] suriNotes: [few-ticks] concept
[16:54:56] suriNotes: Place a Stop abvoe the SH + [few-ticks]
[16:55:09] suriNotes: Target the the Swing Low prior to New-High
[16:55:10] jbtrades: new high RTH or GBX?
[16:55:34] suriNotes: I don't trade GBX .. but RTH
[16:55:51] suriNotes: Slide [34]
[16:55:52] bakrob99: do you have automated strategies to trade these patterns?
[16:55:59] suriNotes: See the example
[16:56:02] suriNotes: yes
[16:56:19] suriNotes: 1. ) NH
[16:56:29] suriNotes: 2 Bar trying to breakout
[16:56:34] suriNotes: no follow thro
[16:56:49] suriNotes: 3. Bar Closed below the 2's Low
[16:56:54] suriNotes: Short trigger
[16:57:05] suriNotes: Place a Stop abvoe 2+ few-ticks
[16:57:26] suriNotes: Slide[35]
[16:57:32] bakrob99: you are my hero ...
[16:57:39] suriNotes: 2B Auto
[16:57:43] suriNotes: :
[16:57:45] suriNotes:
[16:58:38] suriNotes: word of caution on 2BS
[16:58:44] suriNotes: 2Bs
[16:58:50] suriNotes: In short-time frames
[16:58:57] suriNotes: you will see plenty of 2B Tops/Bottoms
[16:59:19] suriNotes: You need to make sure the First New High is really a longer-term NH
[16:59:24] suriNotes: or NL
[16:59:46] suriNotes: They work very well in defined trends.. where it really establishes NH/NLs
[16:59:57] suriNotes: Slide [36]
[17:00:10] suriNotes: Current @ES in trouble
[17:00:14] suriNotes: 2B Top Signal
[17:00:28] Soultrader: http://www.traderslaboratory.com/web...TL_Oct2408.pdf
[17:00:37] suriNotes: Slide [37]
[17:00:42] suriNotes: 2B Bottom
[17:00:51] suriNotes: It is reverse of the logic of 2B Top
[17:01:11] suriNotes: [left] Market needs to be in Steep sell off or down-trend
[17:01:16] suriNotes: New Low
[17:01:25] suriNotes: Folloowed by retracement..
[17:01:39] suriNotes: then an attempt to close below the new-low
[17:01:46] suriNotes: no follow-through
[17:02:13] suriNotes: Mark the High of the B/D Bar
[17:02:24] OAC: Do you look at Dinapoli's Repo ?
[17:02:29] suriNotes: When prices retrace and close above the high of B/D bar
[17:02:35] suriNotes: OAC.. no
[17:03:01] suriNotes: Enter Long above BD High + [Few-ticks]
[17:03:12] BlowFish: Hi, just came to apologise for not making it earlier... ac ouple of things came up that needed attention
[17:03:17] suriNotes: stop below the low of Swing Low - [fewticks]
[17:03:21] suriNotes: ok
[17:03:43] suriNotes: Target the Swing High prior to First New LOw
[17:03:52] suriNotes: Slide [38]
[17:03:57] Soultrader: http://www.traderslaboratory.com/web...TL_Oct2408.pdf
[17:03:57] suriNotes: Examples
[17:04:08] suriNotes: Market in down-trend
[17:04:13] suriNotes: 1. New Low
[17:04:26] suriNotes: 2. Attempted New Low after retracement
[17:04:41] suriNotes: 3. Price Closed above Bar2's High
[17:04:56] suriNotes: Slide [39]
[17:05:14] suriNotes: Slide [40]
[17:05:35] suriNotes: Slide[41-42]
[17:05:51] suriNotes: These videos are posted on Youtube..
[17:05:56] suriNotes: search for surinotes
[17:06:10] suriNotes: Slide [43]
[17:06:13] suriNotes: ABC Patterns
[17:06:27] suriNotes: This is my favorite pattern
[17:06:47] suriNotes: any market, any time-frame, the chart is always in a ABC pattern
[17:06:55] suriNotes: either bullish or bearish ABCs
[17:07:10] suriNotes: Markets always Trend, Reverse and Continue its Trend
[17:07:13] scottybythelake: http://www.youtube.com/user/surinotes
[17:07:19] suriNotes: Slide[44]
[17:07:29] bakrob99: Do you always use LIMIT orders .. or do you sometimes enter with a market if the pattern completes and you are not aboard...
[17:07:33] suriNotes: ABC Patterns.. First written in HM Gartleys
[17:07:44] suriNotes: Always Limit Orders Only
[17:08:04] suriNotes: It is also called 3-Pivot pattern looks like Lightening Bolt
[17:08:19] suriNotes: I only trade in the Direction of the TREND in ABC
[17:08:27] suriNotes: Not the Retracement
[17:08:37] suriNotes: Slide [45]
[17:08:45] suriNotes: Type of AB=CD structures
[17:09:03] suriNotes: there are two types.. ABCs are either Retracement or Extensions
[17:09:25] suriNotes: Look at 'C' point to determine if it is Retr. or Extension
[17:09:42] suriNotes: Slide [46]
[17:09:47] suriNotes: ABC Bullish example
[17:09:56] myrtleturtle: how do you know when "C" is in place?
[17:09:59] suriNotes: All these patterns are AUTO-detected in Real-Time and EOD
[17:10:00] suriNotes: in TS
[17:10:17] suriNotes: ABC Bullish
[17:10:26] suriNotes: Now my ABCs have Entry, Stops
[17:10:30] suriNotes: not part of this chart
[17:10:43] suriNotes: Once ABC is complete..
[17:10:54] suriNotes: Look for one of the Entry Technique presented before
[17:11:01] suriNotes: 2-Bar High + [few-ticks]
[17:11:09] suriNotes: Place a Stop below [c]
[17:11:15] suriNotes: [c] - few-ticks
[17:11:27] suriNotes: Targets are also auto placed
[17:11:42] suriNotes: I trade mostly until 100% of AB size
[17:11:53] suriNotes: Slide [47]
[17:12:00] suriNotes: Another example
[17:12:15] suriNotes: On My website I post all my ABC Trades in Real-Time
[17:12:21] suriNotes: you can see my Archives
[17:12:28] suriNotes: http://www.surinotes.com/
[17:12:44] suriNotes: Slide [48]
[17:12:47] suriNotes: ABC Bearish
[17:13:03] suriNotes: Same Entry Technique.. 2-Bar Low - [few-ticks]
[17:13:23] suriNotes: Slide[49] Another ABC
[17:13:33] suriNotes: Slide [50]
[17:13:44] suriNotes: Here is one of my favorite ABC type to trade
[17:14:08] suriNotes: I plot a Fib. Grid .. Consists of FIb. Zone Pivots, Bands
[17:14:37] suriNotes: This is the example I talked about in My interview in Stocks and Commodities (Sep. 08) issue
[17:14:53] suriNotes: This type of example
[17:15:00] suriNotes: James..
[17:15:02] suriNotes: ?
[17:15:09] suriNotes: I see a latency notice?
[17:15:26] suriNotes: can u guys see me??
[17:15:33] Head2k: y
[17:15:33] BlowFish: yes
[17:15:35] angelaktariel: y
[17:15:37] scottybythelake: y
[17:15:37] xracer: yes
[17:15:37] stanlyd: y
[17:15:37] Soultrader: y
[17:15:39] simb11: y
[17:15:42] quintadocedro1: y
[17:15:45] mdhanafi68: yes.
[17:15:51] simtrader: y
[17:15:51] suriNotes: thx.. i thought i am talking to my self
[17:15:54] myrtleturtle: y
[17:16:01] suriNotes: Slide [51]
[17:16:10] suriNotes: ABC Scans in RS (on Youtube)
[17:16:22] suriNotes: Slide [52]
[17:16:33] suriNotes: videos on Youtube.. under my id: suriNotes
[17:16:48] scottybythelake: http://www.youtube.com/user/surinotes
[17:16:49] suriNotes: Slide [53-54]
[17:17:08] suriNotes: Here I present my Book "Trade Chart Patterns Like The Pros"
[17:17:13] suriNotes: Thanks scotty
[17:17:27] suriNotes: Book video on Youtube
[17:17:40] suriNotes: Slide [56]
[17:17:56] suriNotes: Book took over 4+ years to write/compile
[17:18:04] suriNotes: It is written for Traders
[17:18:15] simb11: Suri, do you sell your TS indicators?
[17:18:17] suriNotes: Purely frm Practical perspective
[17:18:22] Soultrader: great book by the way i highly recommend it
[17:18:22] suriNotes: some simb
[17:18:43] simb11: How do we get in touch?
[17:18:50] suriNotes: It presents 65 patterns on 300 pages of 250+ large illustrated charts
[17:18:55] suriNotes: http://www.surinotes.com/
[17:19:00] simb11: thks
[17:19:15] suriNotes: Each pattern is presented with Entry/Exit and CLear Examples of Stops/Targets etc
[17:19:30] suriNotes: No Oscillators or other indicators presented.. Just Patterns and How to trade them
[17:19:30] lylo: how do you tell the difference between an ABC, which may actually be a 2B pattern?
[17:19:50] suriNotes: lylo.. give me a min
[17:19:59] lylo: sure
[17:20:00] suriNotes: Slide [57]
[17:20:10] suriNotes: Here I present the various patterns in various groups
[17:20:23] suriNotes: Slide [58]
[17:20:46] suriNotes: Pick few patterns of your interest and Study them
[17:20:48] myrtleturtle: can you give any stats regarding average risk:reward per pattern, and how often patterns appear?
[17:21:02] suriNotes: Master these patterns with your own setups, time-frames
[17:21:23] myrtleturtle: it seems they are generally 1:1 or 1:1.5 or so. is that fair?
[17:21:28] suriNotes: Slide [59]
[17:21:39] suriNotes: For TL Members.. I have a Discount offer
[17:21:45] suriNotes: $10 off the current price
[17:21:56] suriNotes: http://www.surinotes.com/TL/
[17:22:12] suriNotes: Slide [60]
[17:22:25] suriNotes: My email and my website: http://www.surinotes.com
[17:22:39] suriNotes: Thanks all .. I'll answer some of your questions
[17:22:48] suriNotes: Lylo:
[17:23:07] suriNotes: They probably look the same..But 2B is identified by a SIngle bar
[17:23:09] lylo: yes
[17:23:25] suriNotes: where as ABCs are group of bar and requires retracements, pivot strengths to compute
[17:23:43] suriNotes: also ABCs are Continuation trade-setup
[17:23:49] suriNotes: where as 2B is a Reversal
[17:23:54] suriNotes: setup
[17:23:59] lylo: which is why I asked
[17:24:00] suriNotes: myrtle..
[17:24:06] suriNotes: I have some patterns Stats..
[17:24:20] mong: i'm heading off. ty suri and soul. GTA!
[17:24:21] suriNotes: they vary in diff. time-frames
[17:24:40] bakrob99: I have just ordered the book ... Thanks You Suri !
[17:24:43] BlowFish: pre-empted my question (pattern stats)
[17:24:54] xracer: ty
[17:24:59] suriNotes: thnx bakrob
[17:25:17] lylo: if you think you are in an ABC pattern, couldn't you enter, then find out it is reversing shortly after, and is really a double top?
[17:25:22] scottybythelake: which pattern in which time-frame has the best stats?
[17:25:31] BlowFish: have you found that your stats have improved with experience and 'filtering' the patterns? By a lot or not?
[17:25:50] bakrob99: James - Will the history of this chat be available on the website?
[17:26:06] Soultrader: yes of course
[17:26:15] Soultrader: the transcript will be up right after this session
[17:26:34] suriNotes: scotty.. The best pattern for me is 2B in 610T
[17:26:39] suriNotes: also ABCs, Gartley etc
[17:27:05] suriNotes: Blow.. I think I use Patterns with a Context
[17:27:09] suriNotes: Fib. Grid..
[17:27:49] suriNotes: So, ABCs appear many .. but I take certain ABCs using criteria
[17:28:02] suriNotes: same as 2Bs
[17:28:18] suriNotes: The Context is Fib. Grid.. It is the size, location of the pattern and time-frame etc
[17:28:25] lylo: and the criteria and stats are in your book?
[17:28:53] suriNotes: All the criteria.. No stats in the book
[17:29:02] suriNotes: Entry, Exits
[17:29:10] suriNotes: Stops and Targets for each pattern
[17:29:36] suriNotes: Stats should be useful to the reader..
[17:29:36] lylo: how do I weight the probability of success (without testing it myself;- )
[17:29:48] OAC: Do you trade pttern failures ?
[17:30:07] suriNotes: you have to make these patterns your -own lylo
[17:30:10] suriNotes: yes OAC
[17:30:21] BlowFish: do you have a limit (ticks or number of bars) that a 2b has before returning above/below previous swing?
[17:30:28] suriNotes: some Pattern failures have higher success than the pattern itself
[17:30:31] myrtleturtle: I suppose, with ABC, the entry is within the AB pattern, and target is AB, then risk:reward is just over 1:1
[17:30:36] BlowFish: before its 'invalidated'
[17:30:43] myrtleturtle: \length ofAB
[17:30:43] suriNotes: Number of Bars.. It is a variable
[17:30:44] suriNotes: yes
[17:31:02] suriNotes: yes myrl?
[17:31:32] OAC: I trade Woodie's CCI pattern failures
[17:31:51] suriNotes: I bet he won't like it.. if you tell him
[17:32:15] suriNotes: i don't CCI or any Momentum indicators..
[17:33:13] suriNotes: any other qs?
[17:33:18] angelaktariel: how important is volume with any of these patterns?
[17:33:23] TraderDog: Do you ever use tick/trin... market internals to filter trades?
[17:33:40] suriNotes: i think Volume is important.. But i don't use ..
[17:33:48] myrtleturtle: do you use volume in any context as filters?
[17:34:01] angelaktariel: thanks
[17:34:03] suriNotes: myrl.. No
[17:34:10] suriNotes: TraderDog
[17:34:19] suriNotes: yes.. I use TICK/TRIN in Market internal
[17:34:24] Soultrader: angel.. good question im actually considering incorporating volume into some of Suris patterns
[17:34:33] suriNotes: I recently built a Combined Market Internal (CMI) indicator
[17:34:35] Soultrader: as i am big on volume
[17:34:38] suriNotes: which works great
[17:34:43] angelaktariel: cool James, would love to hear more on that
[17:35:08] suriNotes: CMI from yest
[17:35:10] suriNotes: http://www.surinotes.com/index.cfm?pDate=20081023& CSEL=1001
[17:35:13] TraderDog: Do you include uvol/dvol, premium (futures-cash)?
[17:35:19] suriNotes: along with my intraday posts
[17:35:22] suriNotes: yes
[17:35:24] suriNotes: TD
[17:35:41] TraderDog: Thanks.
[17:36:39] Soultrader: suri i have a question
[17:36:52] Soultrader: how disadvantage is one who does not have programming skills
[17:37:00] suriNotes: sure
[17:37:15] suriNotes: some patterns require you to know to identify
[17:37:20] suriNotes: some are very simple
[17:37:24] suriNotes: for example
[17:37:40] suriNotes: Triangles, Rectangles, 2B, some price-reversal pattenrs
[17:37:43] suriNotes: you do not need
[17:38:09] suriNotes: but for Gartleys, Auto ABCs or some complex bar-relationships
[17:38:18] suriNotes: you do need to identify them in RT
[17:38:20] suriNotes: or EOD
[17:38:54] Soultrader: okay
[17:39:00] suriNotes: did I answer you Q, james?
[17:39:06] Soultrader: yes thank you
[17:39:20] suriNotes: any other Qs?
[17:39:51] angelaktariel: Thank you Suri, this was great!
[17:40:03] TraderDog: Are your pattern recognition algorithms hand coded or do you use neural nets, parsers, ... or other techniques?
[17:40:04] Soultrader: yes thank you very much Suri
[17:40:05] stanlyd: thanks
[17:40:05] suriNotes: Thanks Anglela
[17:40:08] scottybythelake: thx : )
[17:40:19] xracer: thanks
[17:40:20] suriNotes: No Neural nets..
[17:40:33] mdhanafi68: just wonder, if in future need to ask.. how?
[17:40:37] TraderDog: Hand coded bar patterns?? in E/L?
[17:40:48] suriNotes: yes
[17:40:54] Soultrader: guys im going to open a thread to discuss this session
[17:40:58] Soultrader: will post a link shortly
[17:41:07] suriNotes: md... surinotes@gmail.com
[17:41:12] TraderDog: Thx... looking at using parsers...
[17:41:30] suriNotes: ok
[17:41:52] mdhanafi68: thanks suri, and soul i'm looking forward for the thread too.
[17:41:55] Soultrader: everyone good?
[17:42:04] myrtleturtle: thanks suri and Soul for taking the time for this. excellent stuff. have a good weekend.
[17:42:04] angelaktariel: me too James...thanks
[17:42:08] xracer: y
[17:42:25] Head2k: Thabk you very much for this session.
[17:42:33] suriNotes: Thanks Guys.. I enjoyed presenting too
[17:42:34] Soultrader: i thank you all for attending and many thanks to Suri for hosting this session