Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Recommended Posts

Over the years, I've seen many TV commentators, newsletter writers, self-proclaimed market gurus, chat room moderators and of course, traders call a bottom. Most of them being early on their call and/or entry are caught on the wrong side of the trend. However, they always have follow up calls to get long in hopes of catching the elusive bottom. I'll show you how elusive - it isn't.

 

What is baffling is, bottoms are one the easiest patterns to spot, so why not wait for it to setup? Of course that would take some trading education, which most people resist spending money on until they have lost some money - or a lot it. But how senseless is it to be calling and risking money on a reversal without any evidence of one? Don't expect this to ever change and we don't want it to. The bottoming pattern happens not only because of accumulation, it is also because of the early buyers capitulating.

 

Let's review some examples.

 

GetChart.aspx?PlayID=67583

 

In the charts above are various tradable instruments. I chose bottoming patterns in stocks, commodities, currencies and the broader markets indices. It does not matter what you trade, this happens the same way in all tradable instruments.

 

As prices move lower within a downtrend they will begin to accelerate lower near its end. This is seen through multiple bars moving down with little overlap between them and/or wide range bars. At some point, the move lower will be rejected and prices will spring back up. The spring up typically is shallow and does not violate the trend by overcoming Major Resistance (MR).

 

What follows is a consolidation and pullback that will retest the original low. At times, the original low point of the move will be violated; however, all moves higher that initiated from the retest should have multiple bars moving higher into MR or above it and may have bullish Wide Range Bars (+WRB) as well. Pristine Tip: Multiple bars moving in one direction with little overlap between them are a Wide Range Bar in a higher time frame.

 

The bottoming process can go on for a relatively long period of time depending on the time frame being viewed. Longer time frames will form bottoms over a longer period of time and vice versa for shorter. That being said, the Pristine Trained Trader (PTT) knows that the odds of the bottoming pattern having high odds of making a significant move depends on the alignment of multiple time frames and where the bottom sets up. Let's look at an example of a stock that should form a bottoming pattern soon.

 

GetChart.aspx?PlayID=67584

 

In the chart above, I have displayed multiple time frames of ROSS Stores (ROST). The monthly time frame is in a strong uptrend and pulling back where buyers will show up. That pullback is coming into first price support (green area), which may be hard to see to the untrained eye in this time frame.

 

What I have marked on the monthly as price support is the overlapping candles in the $50 dollar area. Pristine Tip: Overlapping candles in a higher time frame are a base in a lower time frame. See the base in the weekly time frame at the left. Notice the increase in volume last week as current prices neared the base of price support. That pick up in volume is exactly what we want to see when prices enter into a price support area.

 

The daily time frame of ROST is clearly in a downtrend and has not formed a bottom. However, Thursday's gap lower on increased volume that resulted in the formation of a Bottoming Tail (BT) is a typical exhaustion gap. This gap lower and BT could be the start of the bottoming process; time will tell. Exhaustion gaps come after a period of declining prices and signal that the last of the traders/investors hoping that prices would hold and turn higher have given up hope and are dumping their shares.

 

With the current correction in the broader markets ongoing, I hope this Chart of the Week will help you what to look for. There may be stocks that have shown relative strength and have started the bottoming process already. You will have to scan for them, but now you know what to look for!

 

Many new to trading the markets are lured into thinking that one market is a better market to trade than another. Those trying to sell you their services related to a specific market will guide you to that faulty thinking. For example, FOREX is a better or easier market to trade than individual stocks or equity e-minis.

 

This is completely false. Any market can be difficult at times because of uncertainty related to that market resulting in choppy price action. Or, any market can be relatively easy to trade when multiple technical concepts are in alignment.

 

With the right trading education - you can trade any market or stock you want with the same method.

 

Remember, the examples of bottoming patterns above were from Stocks, Commodities and Currencies. There is no difference. Yes, different instruments have basic foundational information related to them, but that information is not what you will trade. It's the patterns within the trends at the time that you will trade.

 

Happy Thanksgiving to All!

 

Greg Capra

President & CEO

Pristine Capital Holdings, Inc.

pristine-logo-small.jpg

Share this post


Link to post
Share on other sites

There is only one bottom for stocks, and I've bought a couple over the years that got there. It is when the stock hit's Zero. That is "the" bottom. Other than that it can always go lower.

Share this post


Link to post
Share on other sites

Greg Capra, Pristine, and Oscar Velez - that is all you need to know to run the other way.

 

If any trader, new or otherwise, is out there looking for the holy grail in the form of trader education, Pristine is the last place you should look.

 

Do your due diligence, search the trading forums, and do not allow you and your money to be parted by these dudes!

 

Best Wishes,

 

Thales

Share this post


Link to post
Share on other sites
Greg Capra, Pristine, and Oscar Velez - that is all you need to know to run the other way.

 

If any trader, new or otherwise, is out there looking for the holy grail in the form of trader education, Pristine is the last place you should look.

 

Do your due diligence, search the trading forums, and do not allow you and your money to be parted by these dudes!

 

Best Wishes,

 

Thales

 

I disagree. While I don't always agree with the particulars, I've found their charts and lessons to be very useful. And they have far more material available for free than just about anybody. In addition, it's concrete and practical, unlike the usual philosophical and psychological piffle.

 

Db

Share this post


Link to post
Share on other sites

Originally Posted by thalestrader »

Greg Capra, Pristine, and Oscar Velez - that is all you need to know to run the other way.

 

If any trader, new or otherwise, is out there looking for the holy grail in the form of trader education, Pristine is the last place you should look.

 

Do your due diligence, search the trading forums, and do not allow you and your money to be parted by these dudes!

 

Best Wishes,

 

Thales

 

Thalestrader,

 

First, let me correct you on my X-partner’s name. It’s Oliver Velez, not Oscar. There are those and I assume that you are one of them that don’t like Oliver. That’s okay; you’re entitled to your opinion. Some didn’t care for him because they felt he was too much of a salesman. There are salesmen in every field and many that cannot succeed as well as those selling often dislike that salesperson. If Oliver rubs you the wrong way, I think you know where to find him and can tell him. If not e-mail me.

 

As someone posting at this site, I assume that you are looking for education in some form and have tried to find the Holy Grail of education about the markets yourself, as most have at the start. I was not different. I studied and used many indicators. I wrote my own and tried many trading styles.

 

Everyone or most everyone goes through that process. Most then realize there is no such thing as the perfect trading system or style of trading. In time, they settle on a trading plan based on a method of trading that they have tested or traded for a period of time. Or they give up.

 

Now, if you have taken Pristine courses and were dissatisfied with them, I would like to hear from you about that. We have never had anyone in 18-years complain and ask for a refund. That does not mean everyone that takes a Pristine course makes money. As I believe you know, someone can make money with the same method another cannot make money with. I doubt I need to tell you why.

 

Thales, if you have not taken a course with us your opinion is baseless. Regardless, why you would try to bad-mouth me? Have you ever met me? Have I or Pristine not delivered something promised to you?

 

I have personally traded live with real money at many traders’ expos and won most of those trading events with the same trading method taught in our courses. Not many that teach are willing to do that as you know. What Pristine teaches is traded every trading day in our trading rooms for anyone to see in real-time. Most days are winners, but not all.

 

I don’t know if you are one, but it’s not uncommon for competitors to hind behind fake names and make such posts. Thales, if you are not and for whatever reason you hold a dislike for me or Pristine, I hope my reply helps give you some insights that you didn’t have before

 

All the best,

 

Greg Capra

greg@pristine.com

President and CEO

Pristine

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Similar Content

    • By AdrianaLowe
      The theme over this last trading week has been one of remarkable resilience. After breaking down from key resistance levels, it seemed that a period of consolidation would follow. But, globally, markets instead rallied with conviction to retest their highs.
      I have been sceptical about the sustainability of the rally this year. But one of the most fundamental axioms of surviving the markets is to trade what you see, not what you believe. And what I am seeing is markets that seem to want to push higher across the board, with individual stocks holding up well even when faced with bearish news.
      S&P 500

      (credit: chart from Sigma by Hydra X)
      The S&P closed the week strongly at 2,822.48, up 0.5% on high volume, and on the back of its biggest weekly gain since November 2018. US markets seem insistent on forging a path higher despite the overhang of earnings, macro economy news, North Korea, and ongoing China trade talks. I still wait for price to break and close clear of the congestion zone around 2,800 before entering longs, but this looks increasingly like a environment where the only rational positions to take are either to be flat or long.
      MICROSOFT

      (credit: chart from Sigma by Hydra X)
      Gains this week were led by tech, with the sector surging 4.9%, and also becoming the best performing sector of 2019. I find MSFT interesting, having completed a bullish inverse head and shoulders pattern, rallying in a tight rising channel, and strongly testing resistance (and also its all-time highs) on high volume. But a spinning top candlestick in the midst of overhead resistance, and a bearish stochastic crossover which in overbought territory could translate into a pullback, which could provide interesting entries for longs.
      TESLA

      (credit: chart from Sigma by Hydra X)
      A good litmus test for market sentiment is how stocks behave on news. Tesla has held on to $275 support despite its Model Y unveiling event underwhelming analysts; BAML, CFRA Research and Canaccord Genuity all issued cautionary notes. If it gets there, $260 looks to be strong support for a countertrend rally.

      BOEING

      (credit: chart from Sigma by Hydra X)
      Boeing continued to suffer the aftermath of the latest tragedy, ultimately having to suspend its entire fleet of 737 MAX planes when the FAA finally followed the lead of global aviation authorities in grounding the plane. Deliveries of the 737 MAX have also been paused. The beleaguered company faces an indeterminate outcome from investigations, bills from airlines affected by the grounding of the plane, as well as potential suits from the families of victims. On Thursday, the US Air Force joined the party. It launched a blistering attack on Boeing, saying that the company has a ‘severe situation’ after flawed inspections of their KC-46 air refuelling tanker aircraft, and questioning the company’s ‘culture of discipline for safety’. [https://www.cnn.com/2019/03/14/politics/air-force-boeing-refueling-plane/index.html] Despite all this, the stock has proven remarkably well supported at $370, repeatedly rallying from those levels on high volume.
      FACEBOOK

      (credit: chart from Sigma by Hydra X)
      No company has had a worse week than FB, even within the context of its bad year. The week started with a proposal by Senator Elizabeth Warren to break up FB, was followed by a network outage affecting its Facebook, WhatsApp and Instagram services, and then announcements of a widening federal criminal probe into its data sharing practices. Two key executives, Chris Cox and Chris Daniels also announced their departures from the company. A nadir was reached when its Facebook application was used to livestream the hate-driven massacre of 49 people in New Zealand.
      Technically, the stock has broken below the bottom of its ascending channel, and key overhead resistance in the $170-173 region looks daunting. There is also a huge gap from Feb 2019 waiting to be closed.
      Yet in spite of the weak technical picture and the deluge of negative news, FB closed just 2.13% down for the week, and ended the trading session on Friday well above the lows of the day, forming a bullish hammer. While I have been waiting for a clear break in one direction or the other for a while, as rising channel met overhead resistance, I choose to stay as interested spectators for now.

      EUR/USD

      (credit: chart from Sigma by Hydra X)

      Finally, last week I noted the technical breakdown of key support levels in the EURUSD, in conjunction with fundamentally bearish news in the form of Draghi’s dovish speech. However, I was keen to stay on the sidelines, given past experience of how crowded trades tend to turn out. EURUSD didn’t disappoint, as it promptly rose in a stop-hunting rally, which would have trapped any short entries in a very uncomfortable position.




    • By trading4life
      Hello, My name is trading4life.
      I just joined this forum.
  • Topics

  • Posts

    • In the US , is this the most “important” election ever or the least important election ever? Donald, is this what happens when you don’t keep your promises - like to drain the swamp? And  https://www.theamericanconservative.com/articles/the-adults-in-the-room-with-trump-werent-adults-at-all/ and he declassifies all kinds of stuff and they still won't let it out... and ... ...  swamp ain't drained     Of course, if he did drain the swamp, then would we get to see the deep state dirt below it in action ?... like a mostly fake plandemic engineered a to accelerate plans to remake the world economy by burning it down... while up here on TL it seems we quietly don’t care who’s behind all that...   Have a great weekend all
    • Ruthless plagiarisms just for you  We do have a pandemic, but it’a plandemic  of fear - based on ginned up pseudo-science masquerading as unbiased fact. Here’s a list of equally valid ‘factualizations’ , with many items from the CDC itself, that paint a very different picture from the fear and dread being relentlessly drummed into the brains of unsuspecting citizens. 1) The PCR test is practically useless 2) A positive test is NOT a CASE 3) The Centers for Disease Control dramatically lowered the Covid-19 Death Count 4) CDC reports Covid-19 Survival Rate over 99% 5) CDC reveals 85% of Positive Covid cases wore face masks Always or Often 6) There are inexpensive, proven therapies for Covid-19 7) The US Death Rate is NOT spiking 😎 Most Covid-19 Deaths Occur at the End of a normal Lifespan 9) CDC Data Shows Minimal Covid Risk to Children and Young Adults In other words - wake the fuck up people!  
    • Long long ago I worked in the brokerage business and for a time was a principle in a brokerage where I networked with and recruited  from brokerage firms of all sizes and types... I can categorically state that if you trust your broker you are a rube at best.  If you have all you funds at one broker or even two diff brokers, you're an idiot.  Brokerages and the people they attract from the top to the bottom are everything fiduciary is not.   While it's perfectly fine to be satisfied with the costs, fills, and service you receive from a brokerage... it is not perfectly fine to let that cross the line into 'trust'.  As a client, you need to stay vigilant and ALWAYS be ready to jerk your money at the very first hint of trouble.     as vaguely as possible, zdo
    • "The whole point is that the press loses its way when it cares more about who benefits from information than whether it's true." https://greenwald.substack.com/p/article-on-joe-and-hunter-biden-censored  
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.