Strategy Based On Chart Pattern

trading strategies and money management discussion, code, results

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funkyviking
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Postby funkyviking » Fri Jun 23, 2006 1:04 pm

Ali Son
There are 2 ways that Forex companys make money, commissions and the most lucrative but dangerous way is netting out all client trades and hoping that they lose money. all this small fx companys work with the second way. that is why most of them do price manipulation, they force the client to lose money. of course they make money on the spread, client buys another client sells at the same time, but for this to be profitable you need huge volumes. but anyway they need to keep all positions open, to net them out, and here comes the danger for them. they live from 1 rule, that 90% of the clients lose money. what is even worse, they can do with the client funds whatever they want, pay their bills, buy a new car........more and more companys if you ask them, after the refco skandal, for a big account offer you segregation possibility. I would recommend to everybody that they at least ask for it. If not, always try to trade with big fx companys, because the big volume they have, helps them not to get hurt too much on losses.

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fatdog1
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Postby fatdog1 » Fri Jun 23, 2006 1:33 pm

fatdog1 wrote:Here is a potential Nasdaq long on a 60 minute chart for this morning.
We are near old support and the breakout flag pattern is there.
It is sitting on top of a small breakout that has already had a pullback overnight.



Had to take a shower and missed the action.

Nasdaq and Russell did the same thing as the Euro this morning so long trade won't happen. I would be careful if I shorted the pullback to the breakout line since we are near support on all. Mini Dow has fresh support 11033.




cary
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Postby cary » Fri Jun 23, 2006 5:01 pm

Fatdog - I downloaded your files, but I am not getting the horizontal lines that appear on your chart. Was that indicator included?

fatdog1
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Postby fatdog1 » Fri Jun 23, 2006 5:17 pm

cary wrote:Fatdog - I downloaded your files, but I am not getting the horizontal lines that appear on your chart. Was that indicator included?


The horizontal lines come with Tradestaton as part of the drawing menu.
Anybody else not see horizontal lines on the workspace?

cary
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Postby cary » Fri Jun 23, 2006 5:52 pm

You drew the lines in yourself? I know they are in the drawing menu... does your indicator draw them for you, or not? Just trying to get clear on that point.

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fatdog1
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Postby fatdog1 » Fri Jun 23, 2006 6:41 pm

cary wrote:You drew the lines in yourself? I know they are in the drawing menu... does your indicator draw them for you, or not? Just trying to get clear on that point.


I put the lines on myself.
I don't use any indicators anymore.
I use to use MACD and RSI to indicate exhaustion.
Sometimes I look at volume for breakouts.

rrobin
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Postby rrobin » Fri Jun 23, 2006 8:24 pm

I put the lines on myself.
I don't use any indicators anymore.[img]



Try the Gridiron and see if you can change it to fit your needs.

rr

fatdog1
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Postby fatdog1 » Fri Jun 23, 2006 8:43 pm

rrobin wrote:I put the lines on myself.
I don't use any indicators anymore.[img]



Try the Gridiron and see if you can change it to fit your needs.

rr



Do you have a link for the Gridron?
What does it do?
I am a beginner with Easy Language so I can't change very much.
Thanks,
FD1
Last edited by fatdog1 on Fri Jun 23, 2006 8:47 pm, edited 1 time in total.

fatdog1
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Postby fatdog1 » Fri Jun 23, 2006 8:45 pm

I had a busy day being Mr. Mom.
I missed a nice rally and sell off.
The area of support at 1251 on the S & P's kicked off the rally.
It was the second time back to 1251 this week and is now my trading range bottom for the S & P's.

I was going to trade @NQ long this morning after the first breakdown trade reached support and the Nasdaq reversed.

As usually happens, the Nasdaq had a bull flag pole followed by a congestion area and a breakout when it was near support.

When it was near resistance, it had a straight breakdown trade, a pullback to the breakdown line, and then a
bear flag pole followed by a congestion area and then another breakdown trade giving you three chances to get short this afternoon.

It is not really necessary for you to learn everything I know about support and resistance and horizontal lines if you can help me add the condition to the DarvasBox code that bull flag breakouts are proceeded by a up flag pole and bear flag breakdown trades are proceeded by a down flag pole.
When the flag pole forms, you know you are near support and resistance :oops:

Does anyone think the code for a key reversal would work?
I guess that is a good explaination for a flag pole.

Hey Ali,
I just saw some commodity portfolio manager on CNBC talking about having his money tied up in the "whole Refco bankruptcy, fraud, disaster.
Smarter people than me got hurt.

I also read in this months Futures Magazine about some people who borrowed money against their houses to open a forex account with Refco.
They are headed for their own bankruptcy.
I would love to meet the Refco lawyer in a dark alley someday.
Did I mention I am bipolar? :evil:

Have a nice weekend all,
FD1


fatdog1
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Postby fatdog1 » Fri Jun 23, 2006 9:51 pm

I just noticed something on the Russell which should explain why I want the DarvasBox to extend the top and bottom of the box to the right to trade a pullback to the breakout line in the future.

Look at what happens when the Russell returns to the 694.50 breakout line from this morning later this afternoon.

The pullback to the breakdown line on the short happened right away but the pullback to the breakout line on the Russell and the Nasdaq also happened hours after the original breakout. For all I know neither might not have happened until next Thursday.

I'll take that long at the original breakout line if the strategy can be made to repeat the original trade conditions whenever it happens in the future.
I will need to add a exit strategy for a profit in case the bounce fails like it did on the Nasdaq.
The Russell closed close to the breakdown line so the bounce was better.

Who was it that said this stuff was random?
It is a big jigsaw puzzle.
Maybe I am autistic instead of bipolar.
I am drunk for sure. BlackEye_Smile


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