Strategy Based On Chart Pattern

trading strategies and money management discussion, code, results

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fatdog1
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Postby fatdog1 » Sun Jun 25, 2006 1:10 am

TheRumpledOne wrote:Using High[1]/Low[1] as inputs gives breakout lines.



Forgot that I can't use currentdate on the weekends!!


TRO,
That breakout would have happened for us about 8 dollars ago and would already be a big winner even though it is coming up on the breakdown line. There might be some profit taking here.
If you could, please try to add the code from the key reversal up candle to the DarvasBox as a condition to the ploting of the box for long trades.

Key reversal up candles indicate support is near.
It could be a major improvement.
BTW, when I scalp on 5 minute charts, I try to buy the key reversal candle because I know where the areas of support and resistance are.
After the first congestion area forms and the next breakout happens, I trail my stop to the back of the new congestion area.
The DarvasBox breakout is the next best place to get in if I miss the key reversal candle or if I can't watch the screen. I still need to manually turn the DarvasBox on after the key reversal candle or it would short me to the poor house.
Now I run the long on one chart and the short on another.

The Weinstein 4 stage code might be harder because of the vertical and horizontal channels. He also uses RSI and a 40 week MA cross as triggers and increasing volume also to confirm the breakout.

Have you ever read his book?

Man I wish I could come up with a better way to explain myself.

Last edited by fatdog1 on Sun Jun 25, 2006 8:21 am, edited 2 times in total.

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Ali Son
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Postby Ali Son » Sun Jun 25, 2006 1:10 am

"The bull flag breakout is the most successful pattern per Tom Bulkowski in this months Active Trader magazine."

Too bad he didn't give a rudimentary code to develop.

-OS

fatdog1
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Postby fatdog1 » Sun Jun 25, 2006 1:14 am

fatdog1 wrote:
TheRumpledOne wrote:Using High[1]/Low[1] as inputs gives breakout lines.



Forgot that I can't use currentdate on the weekends!!


TRO,

That breakout would have happened for us about 8 dollars ago and would already be a big winner even though it is coming up on the breakdown line. There might be some profit taking here.
If you could, please try to add the code from the key reversal up candle to the DarvasBox as a condition to the ploting of the box for long trades.

Key reversal up candles indicate support is near.
It could be a major improvement.
BTW, when I scalp on 5 minute charts, I try to buy the key reversal candle because I know where the areas of support and resistance are.
After the first congestion area forms and the next breakout happens, I trail my stop to the back of the new congestion area.
The DarvasBox breakout is the next best place to get in if I miss the key reversal candle or if I can't watch the screen.
The Weinstein code would be harder because of the vertical and horizontal channels. He also uses RSI and a 40 week MA cross as triggers for his breakouts.

Have you ever read his book?


How does this scalper determine support and resistance?
Last edited by fatdog1 on Sun Jun 25, 2006 1:26 am, edited 1 time in total.

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TheRumpledOne
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Postby TheRumpledOne » Sun Jun 25, 2006 1:19 am

"The Weinstein code would be harder because of the vertical and horizontal channels. He also uses RSI and a 40 week MA cross as triggers.
Have you ever read his book? "

I have read so much, I really don't know.

All that matters is taking profit.

I keep it simple.
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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TheRumpledOne
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Postby TheRumpledOne » Sun Jun 25, 2006 1:21 am

"If you could, please try to add the code from the key reversal up candle to the DarvasBox as a condition to the ploting of the box for long trades. "

Next time I mess with the box, I'll take a look.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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fatdog1
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Postby fatdog1 » Sun Jun 25, 2006 1:24 am

TheRumpledOne wrote:"The Weinstein code would be harder because of the vertical and horizontal channels. He also uses RSI and a 40 week MA cross as triggers.
Have you ever read his book? "

I have read so much, I really don't know.

All that matters is taking profit.

I keep it simple.


For sure.
As simple as possible.
I want to paint and remodel and let the strategy handle it. :lol:

fatdog1
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Postby fatdog1 » Sun Jun 25, 2006 1:28 am

TheRumpledOne wrote:"If you could, please try to add the code from the key reversal up candle to the DarvasBox as a condition to the ploting of the box for long trades. "

Next time I mess with the box, I'll take a look.


Thanks TRO,
Your the best

Ali Son
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Postby Ali Son » Sun Jun 25, 2006 2:24 am

Now that I have the precise particulars, I will also go ahead and enlist the support of coders on the TS forums as well.

https://www.tradestation.com/Discussion ... c_ID=53491

FatDog1, I'll let you know when I get answer to my post with a working modified Darvas code.

-OS

fatdog1
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Postby fatdog1 » Sun Jun 25, 2006 8:51 am

Ali Son wrote:Now that I have the precise particulars, I will also go ahead and enlist the support of coders on the TS forums as well.

https://www.tradestation.com/Discussion ... c_ID=53491

FatDog1, I'll let you know when I get answer to my post with a working modified Darvas code.

-OS


Ali,
Sounds good. TRO said he would look at it too.
I will look at the charts with DarvasBox on it to find examples of bull and bear flags to post pictures of for a visual clue.
I found one sort of picture where the flag pole is inside the box for a long example and one good looking bear flag.




FD1

fatdog1
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Postby fatdog1 » Sun Jun 25, 2006 9:18 am

fatdog1 wrote:
Ali Son wrote:Now that I have the precise particulars, I will also go ahead and enlist the support of coders on the TS forums as well.

https://www.tradestation.com/Discussion ... c_ID=53491

FatDog1, I'll let you know when I get answer to my post with a working modified Darvas code.

-OS


Ali,
Sounds good. TRO said he would look at it too.
I will look at the charts with DarvasBox on it to find examples of bull and bear flags to post pictures of for a visual clue.
I found one sort of picture where the flag pole is inside the box for a long example and one good looking bear flag.




FD1


Ok, I changed the time frame on the EURUSD to 30 minutes and I found a
good looking bull flag breakout.

The flagpole is outside the first box and is a big key reversal candle or up flag pole candle.

The congestion area is not one DarvasBox, but several side by side in about the same range.

You can see what happens a lot of times the way the DarvasBox is currently coded. There are lots of little long and short trades inside the DarvasBoxes which should not happen but that can be reduced by changing the stop loss and profit target settings in the inputs.

There is finally a breakout of the last DarvasBox which is the bull flag breakout trade that I am looking for.

I am hoping that if the key reversal condition was added, there would only be one DarvasBox around the congestion area and one long breakout trade.

In the next picture and next post, I will simulate the extend box top and box bottom to the right feature I am looking for by using hand drawn trend lines for the box top and box bottom.

Then I will scroll to the right on the chart to see what happens when the price trades back to the hand drawn trendlines.


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