No, no stocks. Early in my career I traded stocks, but they're very much manipulated by the market makers. Futures are less manipulated and I prefer to trade them. And yes, I'm keeping my trades aligned with the trend. I've always been the revolutionary guy, going against the heard, and I have to admit that I still like it, but I've learned over the years that one has to be careful with that and balance the "going against the heard" thing in a proper way. The heard can turn into a beast on crack!
I got run over 1 too many times trying counter trend trades. So currently I am only going with the trend. I use 60 minute on day trades for trend ID and weekly charts for trend ID for swing trades off daily charts. I like 3 and 13 minute charts for day trade entry and I trade from 60 minute charts for what I call short swings 3-5 days and daily charts for 5-15 days.
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Fwiw, another excellent resource for harmonic trading is "Trade Chart Patterns Like the Pros," self-published by Suri Duddella and can be found at www.surinotes.com. In addition to a preview of his book, you will also see numerious screen captures of him placing trades using these techniques on both equities and futures.
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I agree. I've owned this book for a while, it's a great resource.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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All markets are manipulated, and due to the cointegration between markets even the ones which are hard to manipulate will be manipulated indirectly. You are right that stocks are usually the easiest for operators to manipulate due to the rules of specialists/market making on the various exchanges but manipulation is rampant everywhere.
Just open up some charts of obviously related forex pairs and observe for a while if you don't believe me. Operators on the forex market love to 'make the rounds' by handling one set of currencies while holding other related ones still, then they usually switch it up and push the ones that were being held against the direction you would intuitively expect to knock traders out of their positions (stop hunt) and/or trap them into bad positions before rapidly bringing it back into alignment with the related crosses.
Such manipulations are routine and blatantly obvious when you know what to look for. That is why understanding how the operators work is the most powerful tool you can have on your belt. Note that there is no one set formula, different markets will be manipulated in different ways due to differences in exchange trading rules or differences in volume, transaction costs, etc.. hence why screen time closely inspecting the action of various markets is invaluable.
Understand the market dynamics, find the important signals to look for.. then go about looking for or designing an indicator to isolate and detect those signals. That is a crucial mistake most people make, trying to go about it the other way around.
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Leonardo de Fibonacci was one of the greatest mathematicians of the Middle Ages. He's the one that introduced the Arabic art of Algebra to the Roman civilization, meaning that he introduced the numbers we use in the world today. Till then we used the roman numerals (I = 1, II = 2, III = 3, IV = 4, V = 5 and so on). He also studied the Pyramids of Egypt.
Thanks to that he discovered the Golden Ratio.
The sequence of the Fibonnaci numbers is quite simple:
The ,618 and the 1,618 are two of the four Fibonacci -related numbers that are used to consider price action harmonic. The two other numbers that derives from the series (0,786 and the 1,27 ) are the square root of the 0,618 and the 1,618.
These four numbers have been found to exist in many natural and man-made phenomena. The ,618 and the 1,618 constants from the series are found in the Great Pyramids. We find this on the human body. It's out in nature. And they're even present in the markets. They frequently occur in price charts on all time frames. So, the primary concept to grasp is that these numbers exist for a reason. As you begin to incorporate these numbers into your existing chart analysis, you will realize that these measurement techniques are effective tools in gauging price action.
Last edited by George; October 15th, 2009 at 07:54 AM.