What Really Works for Technical Traders

[darvasfan 10]

Today the volume is so much higher ,the system is difficult to apply.

Unless you work for Trade Guiders.

Do you trade like Darvas?

Do you make a living?

And if Mighty Mouse reads this, he will ask for your trading statement.

Kind regards

bobc

 

Bob,

 

I would say that the heart of CANSLIM, as it relates to volume analysis, is exactly what Darvas was looking at. So, for swing or longer term trading, I don't believe that today's volume would make it any different than in the past. It's all relative.

 

I only wish I traded like Darvas. He was very profitable. I'm not. My "system" is a synthesis. I do trade breakouts on occasion using the box system, but I prefer trading pullbacks in an uptrend. Darvas' system does not work well in a non-trending or weak trending environment and he readily admitted such. His expertise was that when those trending markets came along, he exploited the heck out of it.

 

Best,

 

Darvasfan

[bobcollett 10]

Sounds like the Ross hook, also the 3 day ringed high/low breakout system.

 

This is the basis of many a fund manager, very technically sound in a trending market.

 

A little trickier in day trading...

 

Thanks to you for the input!

 

 

Luv,

Phantom

 

Dear Phantom

I have traded the Ross hook for 5 years and the only time I made money was late Friday, in the after hours market, and I had tasted my first bottle of Dry White.

Kind regards

bobc

[phantom 16]

Dear Phantom

I have traded the Ross hook for 5 years and the only time I made money was late Friday, in the after hours market, and I had tasted my first bottle of Dry White.

Kind regards

bobc

 

Luv that Dry White!

 

Yeah, it depends on the market selection and time of day, for sure...

 

I like it on 150-250 or so tic charts off the bean opening following an early morning channel breakout...

 

No more than a 3 cent stop...

 

Locking in profits swiftly...

 

But that's just me.

 

I'm a gunslinger!

 

 

Luv,

Phantom

[phantom 16]

Dear Readers,

 

 

I just read an email from one of my readers who made $3000 in the CL yesterday trading a single contract with the "anti" pattern...

 

This makes me feel great!

 

I already knew this stuff worked, but to see it manifest in another trader's life, well, its beyond words...

 

Its time to remove all your excuses and "make it happen" in your trading, too!

 

 

Luv,

Phantom

[phantom 16]

Dear Phantom

I have traded the Ross hook for 5 years and the only time I made money was late Friday, in the after hours market.

 

Question: why did you trade it for 5 years if you weren't making money at it???

 

 

Luv,

Phantom

[phantom 16]

Question: why did you trade it for 5 years if you weren't making money at it???

 

Never mind Bob, its more of a rhetorical question...

 

Folks, there are methods that consistently work, as long as you can learn how to adapt to the constantly changing market conditions...

 

Its a lot like surfing. No two waves will be alike, but if you've got board balance, you can handle most anything...

 

Learn how to discern price action. The market is always testing-testing-testing. Impulse moves occur only about 5-15% of the time while tests are relentless...

 

Learn how to cover your a#% and don't let your losses get out of control...

 

Learn how to integrate multiple time frames so that you don't get mesmerized by the micro charts...

 

Take plenty of time away from the virtual pit. Don't let your trading obsession ruin your personal life.

 

 

I've had a very fulfilling time coaching you guys/gals. Some of the friendships I've developed over the last three months will last forever...

 

I've reached my personal goals with this thread and its time for me to move on to other things. I'll check back from time to time to see what folks are up to and to read my PMs, but I will not be active on this thread any more.

 

I do hope that the fodder that I've provided will bring you the trading success that is elusive to so many... I know for a fact that it already has for some...

 

Take good care and may God bless you and yours.

 

 

All My Luv,

Phantom

[pat15 10]

many Thanks phantom for sharing your setup and explaining the nuances and posting your charts. It has been of some help to me. Still need to work on my end - recognizing it real time and taking the setup.

 

I plan to post charts when I take the setup especially ANTY and the original setup phantom explained. Hopefully others who have been here and follow this setup can comment. Many times I make mistakes in recognizing it or jumping the gun. However, the methdology phantom showed works but need patience to see it as it sets up.

 

I hope we can continue this thread and post our setups and share our trades beased on this methdology.

 

Best wishes phantom and thank you for starting this thread and taking the time to show us your setups.

 

Regards

 

Pat

[NoodlyJames 10]

 

 

Here we go again!

 

Let's take a look at this morning's natural gas market.

 

The bar at 6 am tests the high from yesterday afternoon and forms a hammer. The market then traverses the entire channel range in a single bar and closes near the low. The next bar tests the 20 period moving average. The bar signaled by the red arrow breaks above the test bar high and reverses all the way to the low, signifying PRICE REJECTION (my favorite two words), closing on the low. At 7 am sharp the market plummets...

 

Anyone else make any money on this breakout?

 

Start tracking some of these setups and at the very least paper trade them!

(Your bank account will love you for it).

 

 

Luv,

Phantom

 

Thanks for the info! I'm new to TA so this is great. If people would like a chart game there is chartgame.com which allows you to try to beat a "buy and hold" strategy.

[bobcollett 10]

Question: why did you trade it for 5 years if you weren't making money at it???

 

 

Luv,

Phantom

 

Hi Phantom

Looking for some info in your thread I came across the above question. I dont quite know how I overlooked it, probably because you never addressed it to me.But it needs an answer. I cant remember why I said what I said.

More likely in jest.

I have always admired Joe Ross ,,and his Ross hook is the same as Al Brooks H1 pattern,a good price action pattern.

Mayby I should scrap my price action and add some indicators.

HEAVEN FORBID

bobc

[phantom 16]

Thanks for the info! I'm new to TA so this is great. If people would like a chart game there is chartgame.com which allows you to try to beat a "buy and hold" strategy.

 

Your welcome NJ.

I'll take channel breakouts with price rejection any day over any other strategy I've ever come across, and I've been doing this for a long time...

 

Luv,

Phantom

[phantom 16]

Hi Phantom

Looking for some info in your thread I came across the above question. I dont quite know how I overlooked it, probably because you never addressed it to me.But it needs an answer. I cant remember why I said what I said.

More likely in jest.

I have always admired Joe Ross ,,and his Ross hook is the same as Al Brooks H1 pattern,a good price action pattern.

Mayby I should scrap my price action and add some indicators.

HEAVEN FORBID

bobc

 

In Joe's book Trading The Ross Hook, he said that at one point in his trading life, he only traded the Ross hook for an entire year...

Sounds like a pretty robust method to me...

 

The only reason that I don't trade it is because my method reduces my risk per trade to the absolute minimum that I can achieve while still having a consistent chance at success...

 

Luv,

Phantom

[kuokam 10]

Hi Phantom, you described the price rejection very well, thank you. But I seem to miss where you talked of the acceptance thereof. Are there good signs of price acceptance, or is it just that non rejection is acceptance?

Again, my apologies if the question has already been answered, you know I am still working on my English.

 

Kuokam

 

Still there, my Phantom friend? Still all ears here.

 

Kuokam

[phantom 16]

Still there, my Phantom friend? Still all ears here.

 

Kuokam

 

Hi Kuokam,

 

I'm here sometimes and not at other times.

I've been busy negotiating these hyper-volatile CL and GC markets.

 

At some point, you'll have to put away the ears and take some action...

Have you applied any of the knowledge I've placed before you and made any money with it?

 

I certainly hope so...

Class was dismissed some time ago.

 

But if you have any specific questions, folks have been sending me private messages, and I do respond to those when I have time.

 

Anyway, I appreciate all of my readers. You people are great!

 

 

Luv,

Phantom

[kuokam 10]

Hi Kuokam,

 

I'm here sometimes and not at other times.

I've been busy negotiating these hyper-volatile CL and GC markets.

 

At some point, you'll have to put away the ears and take some action...

Have you applied any of the knowledge I've placed before you and made any money with it?

 

I certainly hope so...

Class was dismissed some time ago.

 

But if you have any specific questions, folks have been sending me private messages, and I do respond to those when I have time.

 

Anyway, I appreciate all of my readers. You people are great!

 

 

Luv,

Phantom

 

Well, this lazy holy grail seeker succeeded in not blowing up account once more. Thank you, I accept your congrats:)

 

In the meantime, I also took some research action and learned that there is no such a thing as a sure fire breakout, since at least half will fail and those that won't fail will require too large stops.

Therefore, the effective way of trading a breakout is to wait for it to happen, retreat , test the breakout zone and restart to go the side of the breakout. Only then have we not only the minimum stop possible, but also the assurance as to where the trade is headed by the time being.

You just need a bit (more) of patience and discipline.

 

Best,

Kuokam

[phantom 16]

Well, this lazy holy grail seeker succeeded in not blowing up account once more. Thank you, I accept your congrats:)

 

In the meantime, I also took some research action and learned that there is no such a thing as a sure fire breakout, since at least half will fail and those that won't fail will require too large stops.

Therefore, the effective way of trading a breakout is to wait for it to happen, retreat , test the breakout zone and restart to go the side of the breakout. Only then have we not only the minimum stop possible, but also the assurance as to where the trade is headed by the time being.

You just need a bit (more) of patience and discipline.

 

Best,

Kuokam

 

K,

 

Guess I'm not sure what you mean by succeeding in not blowing up an account. Does it mean you're not trading? Trading is not a spectator sport!

 

Anyway, what you said about trading breakouts effectively is exactly what I've been telling you all along; breakout>test>price rejection>continuation. I'm glad you are beginning to see the light. I've always had hope for you...

 

Patience and discipline are the hallmarks of successful traders everywhere.

 

Now can you go out there and make it happen in your trading?

 

 

Luv,

Phantom

[steve46 12]

Hi Phantom

Looking for some info in your thread I came across the above question. I dont quite know how I overlooked it, probably because you never addressed it to me.But it needs an answer. I cant remember why I said what I said.

More likely in jest.

I have always admired Joe Ross ,,and his Ross hook is the same as Al Brooks H1 pattern,a good price action pattern.

Mayby I should scrap my price action and add some indicators.

HEAVEN FORBID

bobc

 

You know Bob, I would bet that the gentleman had a few drinks and slipped up, telling us the truth of his experience....now in the light of day so to speak...he prefers not to elaborate.

 

The problem with all indicator based systems is twofold....one is lag....indicators have to process data and then represent it, then you have to take in the data and make the decision to enter (or not).....the result is that the trader is ALWAYS late to enter... and the other is that the only predictive value an indicator has is based on the idea (the hope) that participants trading size will act on that same indicator.....the result is sometimes it works....sometimes not...in fact as you can guess there can be long periods where it just doesn't work at all....not interested in slamming the gentleman however traders putting their money at risk should have some idea of the REAL risks associated with indicator based systems,

Best of luck

Steve

Edited October 22, 2011 by steve46

[kuokam 10]

K,

 

Guess I'm not sure what you mean by succeeding in not blowing up an account. Does it mean you're not trading? Trading is not a spectator sport!

 

Anyway, what you said about trading breakouts effectively is exactly what I've been telling you all along; breakout>test>price rejection>continuation. I'm glad you are beginning to see the light. I've always had hope for you...

 

Patience and discipline are the hallmarks of successful traders everywhere.

 

Now can you go out there and make it happen in your trading?

 

 

Luv,

Phantom

 

What I meant is: I am not winning yet, but haven't blown up either.

[phantom 16]

You know Bob, I would bet that the gentleman had a few drinks and slipped up, telling us the truth of his experience....now in the light of day so to speak...he prefers not to elaborate.

 

The problem with all indicator based systems is twofold....one is lag....indicators have to process data and then represent it, then you have to take in the data and make the decision to enter (or not).....the result is that the trader is ALWAYS late to enter... and the other is that the only predictive value an indicator has is based on the idea (the hope) that participants trading size will act on that same indicator.....the result is sometimes it works....sometimes not...in fact as you can guess there can be long periods where it just doesn't work at all....not interested in slamming the gentleman however traders putting their money at risk should have some idea of the REAL risks associated with indicator based systems,

Best of luck

Steve

 

 

Ya know Steve, in context to your remark, Bob and I were talking about the Ross hook, which has absolutely NOTHING to do with indicators whatsoever.

 

Would it be asking too much for you to have just a modicum of understanding before you try to invade other people's conversations?

 

Best of luck,

Phantom

[steve46 12]

Yeah your correct...my mistake...however its an open forum, so when you post your comments all members are permitted to respond. If you want to have a "private conversation" send the other person a PM....

 

My other comment is similar to Bob Collett''s. Like others, I am interested as to why you would trade a "pattern" that proved unprofitable for several years.

Edited October 24, 2011 by steve46

[phantom 16]

Yeah your correct...my mistake...however its an open forum, so when you post your comments all members are permitted to respond. If you want to have a "private conversation" send the other person a PM....

 

My other comment is similar to Bob Collett''s. Like others, I am interested as to why you would trade a "pattern" that proved unprofitable for several years.

 

 

I didn't trade it, Bob did.

[Guest Passion]

The real challenge in technical analysis is to read into the charts correctly. A permutation of a couple of indicators, external factors and the stocks fundamentals affect the short term moves. But technical charts do predict in advance the direction a particular chart is going to take.

 

In my quest to get near to this kind of predictions i worked on my own charts.

 

In the next few posting i shall post in such charts which have predicted great falls or great up moves.

 

 

[kuokam 10]

I see almost all main indicators present here. How do you cope with all when trading, Sir ?

 

 

The real challenge in technical analysis is to read into the charts correctly. A permutation of a couple of indicators, external factors and the stocks fundamentals affect the short term moves. But technical charts do predict in advance the direction a particular chart is going to take.

 

In my quest to get near to this kind of predictions i worked on my own charts.

 

In the next few posting i shall post in such charts which have predicted great falls or great up moves.

 

 

[pat15 10]

Thks passion for posting charts. Also pl explain your setup and how you read the setup on the chart based on indicators or price action. Refer to the setup Phantom provided. He showed what he looks for and how he reads it. Many others have also provided some insight into reading the setup on the chart.

Is there some kind of software that charts uses to put those markers? Is this a properitary software?

 

Cheers

 

 

Pat

[Guest Passion]

Yes i have programmed for those indicators.

 

I have selected volumes based, volume price based indicators with oscillators.

 

In a trending market a combination of both gives best results.

 

So i look out for the buy and sell calls and their strength.

 

In a non trending market oscillators work best for short term.

 

So if u look into the chart it gives a total of thats days total buy and sell.

 

Further below it shows no of buy and sell in the past 4 days.

 

If the strength is increasing buys shall increase .

 

II have programmed this to a great length and have tested it.

 

Yes i have developed the programming in it.

 

I also have made candles identifier which i shall incorporate in this.

 

Even thought i have developed it , i have no intentions of commercializing it.

 

GOD BLESS

[Itm707 10]

hi,

Prasal analytics charts look quite interesting .Where can I find out more about them?