Strategy Based On Chart Pattern

trading strategies and money management discussion, code, results

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fatdog1
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Postby fatdog1 » Fri Jun 23, 2006 10:08 pm

No knock on Crammer.
He thinks it real.
He just recommended FMD into a breakdown area.
I'll pass.


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rrobin
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Postby rrobin » Fri Jun 23, 2006 10:33 pm

RE FX_Gridiron

I tried to add the ELD as an attachment, but I got a rejection message.

On TS go TRO's trend page and down load the Motherload.

_Fx_Gridiron should be in there.

https://www.tradestation.com/Discussions/Topic.aspx?Result=1&Topic_ID=40776&Page=1

If this doesn't work we will try another way.

Good Luck

rr

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Postby TheRumpledOne » Fri Jun 23, 2006 10:48 pm

Is this close to where you would have drawn your lines?


fatdog1
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Postby fatdog1 » Fri Jun 23, 2006 11:50 pm

TheRumpledOne wrote:Is this close to where you would have drawn your lines?



Hey Avery,

Nice to talk to you again. Hope the ranch trip was a great trip.

This is amazing whatever it is when you combine it with Weinstein's 4 stages!!

The 20th bar high was a rally candle into the stage 4 breakdown line when the QQQQ started it's sell off this afternoon at 38.40.

The 5th, and 20th bar lines, are the top and bottom of the morning breakout line area if you look over to the area on the left.

The DarvasBox long strategy with the key reversal candle condition would have taken the original breakout trade based on the 50th bar being a key reversal candle near support.

The dark blue line which I can' t read at around 38.28 would be the new breakout line if QQQQ wants to rally next week.

This may or may not happen since we already had a pullback and a bounce today on the first pullback to my original higher breakout area.
Even if it does, the 38.32 breakdown line is new resistance.

Since we have a down flagpole before this trading range, I think that the next move is lower.

If we break below 38.14 which is the bottom of this new trading range we would continue the stage 4 downtrend next week. There is another breakout line at 38.09 which will cause a pullback bounce to the new 38.14 breakdown line before the sell off gets going.

Then we go down to test the 37.96 support area.

What is this anyway? This is as close to what I look for as can be.

I remember you still have the old version of Tradestation so I can't
send you a workspace. Can you send me one with the indicaor eld so I can look at this over the weekend?

I'll put up a screen shot of where I would put my lines and why

.

Thanks again,
FD1

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Postby fatdog1 » Fri Jun 23, 2006 11:53 pm

rrobin wrote:RE FX_Gridiron

I tried to add the ELD as an attachment, but I got a rejection message.

On TS go TRO's trend page and down load the Motherload.

_Fx_Gridiron should be in there.

https://www.tradestation.com/Discussions/Topic.aspx?Result=1&Topic_ID=40776&Page=1

If this doesn't work we will try another way.

Good Luck

rr


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Bipolar I guess.
Doesn't play well with children was what my 2nd grade teacher said.

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Ali Son
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Postby Ali Son » Sat Jun 24, 2006 2:17 am

FATDOG:

I was going to recommend the FX GridIron, but this new TRO indicator fits better. I asked TRO to write something similar for RS in the Trend thread.

Here is TRO's link: http://kreslik.com/forums/viewtopic.php?t=99

OPTIONSWINGS

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Postby fatdog1 » Sat Jun 24, 2006 3:54 am

Ali Son wrote:FATDOG:

I was going to recommend the FX GridIron, but this new TRO indicator fits better. I asked TRO to write something similar for RS in the Trend thread.

Here is TRO's link: http://kreslik.com/forums/viewtopic.php?t=99

OPTIONSWINGS


Hi Ali,

From what I see, the period highs and lows plot when the price trades near support and resistance as should be expected.
TRO has figured out a way to make money inside this area which is
masterful. I can see the S/R areas and can not make money in the middle because of that.

I am trained to react at the S/R areas only by buying the breakout and or pullback to the breakout of the congestion area in the direction of the prevailing trend at the time.

The prevailing trend is determined by the flagpole that preceeds the congestion area.

In fact, I can watch a 5 minute chart form the 4 stages just as if it was happening on a weekly chart like Mr. Weinstein use to watch, and I am able to react to the breakouts and breakdowns on these small time frames and make money without ever trading in the congestion area.

That is my talent. I doubt I will ever be able to become a good middle trader, but I will give it a try.

Every trader needs to find something that they can do over and over again and stick with it. They also need to learn new things in case their current system stops working. My advantage is that Mr. Weinstein's book was written in 1988 and I still see the 4 stages today just as he did when the book was published. I just look on smaller time frames than he did and I believe that stages 1 and 3 can be interchangable if the trend on the smaller time frames wants to continue. Sort of a straddle type strategy which is why the DarvasBox is helpful.

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Postby fatdog1 » Sat Jun 24, 2006 1:46 pm

This is another idea I had for a code based on the 4 stages.
It is going to be a poor picture since it is a full screen shot.
It is a type of channel that has the ability to plot horizontal trendlines when prices are in a trading range and switch to vertical trendlines once the price breaks out of the range and begins a vertical move.
As soon as the vertical move ends, the horizontal channel plots again until the next vertical move occurs.
I apologize for the poor job drawing these vertical trendlines lines.
I reset my trendline angle to 0 and I forgot to write down what the original angle was suppose to be.


Ali Son
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Postby Ali Son » Sat Jun 24, 2006 2:30 pm

TRO has become proficient with Trendlines, so he might be able to bang this part out.

In the mean time, I'm working on getting the bull/bear flag signal out of the Darvas box. Can you better describe that part in plain English. Visually, one can undertand it after looking at all your charts, but putting it into a 2-3 phrase of what price is actually doing in tha process, can help make the coding easer and more apparent.

Correct me if I am wrong but it goes something like this:

1) initial strong penetration of the Darvas congestion box lines of support or reesistance area with

2) retest: an immediate pullback to the congestion area's (trading zone)opposite pararell line (i.e. the line that was not penetrated) constitutes the initial flag pole; and,

3) upon this successful retest (bounce or containment in the congestion area) and subsequent repenetration of of the line that was penetrated with (confirmation of type of flag), GO LONG/SHORT accodringly in that direction as price will continue to move in that direction

4) (unless it is a stage 1 or 4, of course...but this Weinstein part of the code will have to be taken cared of separately.

So, is this flowchart of the Flag Pole/Darvas box entry trigger consistent with your vision? Modify and clarify as you see fit, and I'll go about making it happen.

BTW, looking at jyust our charts with the Darvas strategy boxes, it's not apparent precisely how the flagpole signal is firing.

-optionswings

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Postby TheRumpledOne » Sat Jun 24, 2006 4:14 pm

"TRO has become proficient with Trendlines, so he might be able to bang this part out. "

You want me to "white wash" your fence too? LOL! :lol:
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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