[walterw]

Originally Posted by Jakew »

The question of trading in momentum vs. non-momentum conditions, also known as trading in trending vs. sideways/whipsaw markets seems quite central to improving trading results. However there are few satisfying answers to this question. As mentioned above - indicators lag. Eye observations lag as well because only after some passage of time a trader is able to discern that he is in a whipsaw market... and still will not know when non-momentum conditions change into momentum conditions until after the fact. Channel breakouts are supposed to free those who use them from participating in a whipsaw market, but then again - there are false breakouts. Livermore and Seykota both advise to avoid whipsaw markets, but when I asked Seykota how it is posible to discern that a trend signal is not to be taken because there are whipsaw conditions now, he did not clarify the issue. John Carter in his book states that he is able to classify days of trading (and appriopriate methods to follow on such days) as trending and sideways, but I am not sure if he is really able to that before the open or only after some market action - or inaction.

I would say that trends and whispaws are largely unpredictable, but some gut feel based on experience and concentration may improve the odds in that matter a bit.

Jakew : nobody can tell whats gona happen, you only have areas with the most odds on your favor, then you have to manage small stops vs large trails... thats what this bussiness is all about... otherwise there is no way to place a trade because the market is completely relative on its output BUT it has clear areas where he normaly shows his cards... cheers Walter.

[BlowFish]

A little side question....Walter have you studied Drummonds stuff? Im not trading point and line but it is a remarkable body of work. The multiple time frame stuff is mind blowing.

[walterw]

Originally Posted by BlowFish »

A little side question....Walter have you studied Drummonds stuff? Im not trading point and line but it is a remarkable body of work. The multiple time frame stuff is mind blowing.

Yes Fish, I did study the complete system, it is a very instructive material for the new trader and gives you an excellent base to build your own... His multiple time frame aproach helped me to open my mind in terms of "aerial views" of the trend... also from there on I started to play a lot with smaller time frames charts using indicators from larger time frames...

for example on "flip" I am using a 55T chart with indicators from 110 T and I also use a 11 T (never posted) for some specific timing purposes... all concepts from Drummond multitimeframe analisis... cheers Walter.

Pd : also push and refresh concepts...