Jeff Cooper is a professional trader. Certified Specialist New York University, he is also the author of "Trading on the rocket and the main line", "Trading on the jerk and the main line 2" and "Lectures on the rocket and the main lines, as well as a comprehensive video course" Jeff Cooper on dominance in the daily trade in the markets. "
Many readers are familiar with my books on the rocket and the main area, which explains my short-term method of trading. Most traders are surprised to discover that, despite my focus on short-term (from several hours to several days) time scales, I spend considerable time analyzing the big picture. From my experience, explosive movement of the price usually does not occur suddenly, often (though not always) there are some key signs that will inform us so that we can take advantage of the situation. Some of the key characters can be found in the study of price patterns, temporal patterns or cyclical analysis, study size, the identification of price octaves on the graph Hanna "Square of Nine", as well as the theory of Lines of trend.
The study of the variability may also offer some of the key marks on the likelihood of an imminent explosion in the price. Sometimes, of course, without some knowledge of the above basis the movement of market rates, the study of variability not only give you the key characters on the direction of slope variability. And, of course, as the saying goes "it is important to try to get into the train before they depart from the station." As one of my idols, the legendary trader Bernard Baruch, "Successful speculation in anticipation of similar events."
In the words of W. D. Gann, "Use all the tools all the time." Of course, if you do not know how to combine the technical parts together and agree on a connection between them, the more tools that you use, just destroy you. For the purpose of determining the state of the explosive in the chart below "DOX", we are going to focus on how to shift from big picture to the short-term scope and use of a few simple tools allowing one day to earn 10% of th profits. If you can do so many times, the magic combination of the proposed interim formats and technology tools will make you richer than you ever dreamed of.
As I have already referred to above, one of the key points for the identification of more than average, the movement of prices is not only the correct interpretation of a short-term price movements, but also information received from the big picture. In other words, the short scale does not exist separately - it comes from the vibrations generated and identified by a large picture of the market. Imagine yourself sitting on the edge of a tranquil lake, leaving their feet in the water. A small plane flying above, which in the middle of the lake is thrown a large rock. After ten minutes, the ripple on the surface reaches your feet. The initial force was brought into the movement and, ultimately, the result was obtained. But it took a certain amount of time.
Unfortunately, the markets always have two or two oscillations of the trend, which work simultaneously - the primary and secondary trend. Very similar to the main and lower chords in music, and the tug of war between these two trends determine the slope will be dominated, as the price moves from left to right on schedule. As in music, in the markets you have to catch the feeling of a part before you pay attention to it, whether it sounds, a separate melody. Only the feeling of a show pitch and rhythm of movement, whether on Wall Street or in Lincoln Hall. As traders, we are playing note for note, but only in the context of larger structures can be achieved harmony.
Encouraging moment for the traders may be that as in music, there is a pause in trade and patterns that are repeated. Often, but not always, there is symmetry in the markets and expectations that the repetition of market behavior will occur. Let's look at the example of transition from the big market picture for the short-term picture.
Please note, as a convincing break with GEPom down (a) below 50-day MA mirror reflected signal to buy, filed a convincing closing above the 50-day MA on November 15 (b).
14-June (a), "DOX" made a GEO-down, reaffirming the unsuccessful testing of peaks and in the process, breaking down the graphical model "triangle". The breakthrough gives us a point through which we can hold the lower side of the channel.
From my experience, often the first correction is a strong mid-motion. If you take the maximum price in June - 66.50 and a minimum price of 3 October - 24, you get a range of 42.50 points. Half of this range is 21.25 points. Subtracting this value from the peak at 66.50, you get the middle - 45.25. Take a look at the schedule and you will see that at 45.25 shows an increase of variability, which notes the mid-final reduction (d). Of course, there is no way that at this point to determine what actually will be a minimum. However, assuming that 45 might be the middle of traffic, you can get the projected minimum point. As has been said Gunn, "... both above and below." As well as testing of a maximum in June, which subsequently led to a breakthrough and the subsequent movement of the triangle to minimize the 3rd of October at 24, was successfully tested on 31 th October (paragraph (a) in the chart below).
It is important to draw attention to two items at this point in the chart: 1) by a maximum of 5 th June to minimize the 3rd October, nearly 120 days, one-third of the year and an important inflection point in the analysis of Hanna to find a potential turning point. This is a price designing and countdown placed "DOX" in the field of view. 2) It is important that the testing on October 31 comes after a breakthrough "DOX" above top-down parallel channel 11 th October (see first graph).
"As above, so below." The triangle at the bottom of the movement almost mirrors the triangle at the top. October 31, was the successful testing of a minimum (a), since the break down the channel. The key to successful improvement of the entrance was through a reference point on 15 November (b).
15 th November, "DOX" gives multiple signals of purchase. Not only is the price breaks above the triangle, but it also successfully overcomes the reference point (b), which serves as a signal of purchase, since it first rose above 50-day MA, starting with the breakthrough with GEPom down in June. As you know, multiple signals tend to provide a better return to risk and have to produce explosive movements.
Despite the fact that the market indices, led by the December S & P futures have in the first hour of the 16 th of November up to and basically after that develop the trend down in the morning session, "DOX" continued to grow. After the first rollback in 11:30 (paragraph (a) in the chart below) "DOX" showed a strong intra-day relative strength, or the correct interpretation of when the market-based instruments, despite the overall market sentiment continued to be a new intra-day peak . This set the day with a good trend, as "DOX" continued its upward movement, leading to strong profits.
(a) testing the morning range, representing about 50% of the first increment; (b) two-periodny roll formed micro-model "cup with handle"
Finally, as you can see an explosive move in "DOX" does not go out of the rising channel. Connecting parts together - finding a potential market-based instruments in the larger picture, then, turning to monitor intra-day picture - can be effectively used for a successful trade. But if market-based instruments is not in the field of view to focus on it, as you might expect his subsequent conduct in the crucial day, such as the 16 th of November? I believe that the establishment of a weekly list of coincidences "as well as the list of persecution" big picture is the only way to focus on a market-based instruments, to move to a smaller time scale.
In trade, the main concentration. The more you try to see the smaller, usually you see. Night study, which I do, looking at hundreds of charts, allow me to build both lists. These are the lists where candidates are introduced for trading on the movement and trade in the jerk and the afternoon trend. There are things that can be seen when viewing the manual many schedules each day, which can not be detected during normal computer viewing patterns. As I like to say, "speculation is the observation."
Many readers are familiar with my books on the rocket and the main area, which explains my short-term method of trading. Most traders are surprised to discover that, despite my focus on short-term (from several hours to several days) time scales, I spend considerable time analyzing the big picture. From my experience, explosive movement of the price usually does not occur suddenly, often (though not always) there are some key signs that will inform us so that we can take advantage of the situation. Some of the key characters can be found in the study of price patterns, temporal patterns or cyclical analysis, study size, the identification of price octaves on the graph Hanna "Square of Nine", as well as the theory of Lines of trend.
The study of the variability may also offer some of the key marks on the likelihood of an imminent explosion in the price. Sometimes, of course, without some knowledge of the above basis the movement of market rates, the study of variability not only give you the key characters on the direction of slope variability. And, of course, as the saying goes "it is important to try to get into the train before they depart from the station." As one of my idols, the legendary trader Bernard Baruch, "Successful speculation in anticipation of similar events."
In the words of W. D. Gann, "Use all the tools all the time." Of course, if you do not know how to combine the technical parts together and agree on a connection between them, the more tools that you use, just destroy you. For the purpose of determining the state of the explosive in the chart below "DOX", we are going to focus on how to shift from big picture to the short-term scope and use of a few simple tools allowing one day to earn 10% of th profits. If you can do so many times, the magic combination of the proposed interim formats and technology tools will make you richer than you ever dreamed of.
As I have already referred to above, one of the key points for the identification of more than average, the movement of prices is not only the correct interpretation of a short-term price movements, but also information received from the big picture. In other words, the short scale does not exist separately - it comes from the vibrations generated and identified by a large picture of the market. Imagine yourself sitting on the edge of a tranquil lake, leaving their feet in the water. A small plane flying above, which in the middle of the lake is thrown a large rock. After ten minutes, the ripple on the surface reaches your feet. The initial force was brought into the movement and, ultimately, the result was obtained. But it took a certain amount of time.
Unfortunately, the markets always have two or two oscillations of the trend, which work simultaneously - the primary and secondary trend. Very similar to the main and lower chords in music, and the tug of war between these two trends determine the slope will be dominated, as the price moves from left to right on schedule. As in music, in the markets you have to catch the feeling of a part before you pay attention to it, whether it sounds, a separate melody. Only the feeling of a show pitch and rhythm of movement, whether on Wall Street or in Lincoln Hall. As traders, we are playing note for note, but only in the context of larger structures can be achieved harmony.
Encouraging moment for the traders may be that as in music, there is a pause in trade and patterns that are repeated. Often, but not always, there is symmetry in the markets and expectations that the repetition of market behavior will occur. Let's look at the example of transition from the big market picture for the short-term picture.
Please note, as a convincing break with GEPom down (a) below 50-day MA mirror reflected signal to buy, filed a convincing closing above the 50-day MA on November 15 (b).14-June (a), "DOX" made a GEO-down, reaffirming the unsuccessful testing of peaks and in the process, breaking down the graphical model "triangle". The breakthrough gives us a point through which we can hold the lower side of the channel.
From my experience, often the first correction is a strong mid-motion. If you take the maximum price in June - 66.50 and a minimum price of 3 October - 24, you get a range of 42.50 points. Half of this range is 21.25 points. Subtracting this value from the peak at 66.50, you get the middle - 45.25. Take a look at the schedule and you will see that at 45.25 shows an increase of variability, which notes the mid-final reduction (d). Of course, there is no way that at this point to determine what actually will be a minimum. However, assuming that 45 might be the middle of traffic, you can get the projected minimum point. As has been said Gunn, "... both above and below." As well as testing of a maximum in June, which subsequently led to a breakthrough and the subsequent movement of the triangle to minimize the 3rd of October at 24, was successfully tested on 31 th October (paragraph (a) in the chart below).
It is important to draw attention to two items at this point in the chart: 1) by a maximum of 5 th June to minimize the 3rd October, nearly 120 days, one-third of the year and an important inflection point in the analysis of Hanna to find a potential turning point. This is a price designing and countdown placed "DOX" in the field of view. 2) It is important that the testing on October 31 comes after a breakthrough "DOX" above top-down parallel channel 11 th October (see first graph).
"As above, so below." The triangle at the bottom of the movement almost mirrors the triangle at the top. October 31, was the successful testing of a minimum (a), since the break down the channel. The key to successful improvement of the entrance was through a reference point on 15 November (b).15 th November, "DOX" gives multiple signals of purchase. Not only is the price breaks above the triangle, but it also successfully overcomes the reference point (b), which serves as a signal of purchase, since it first rose above 50-day MA, starting with the breakthrough with GEPom down in June. As you know, multiple signals tend to provide a better return to risk and have to produce explosive movements.
Despite the fact that the market indices, led by the December S & P futures have in the first hour of the 16 th of November up to and basically after that develop the trend down in the morning session, "DOX" continued to grow. After the first rollback in 11:30 (paragraph (a) in the chart below) "DOX" showed a strong intra-day relative strength, or the correct interpretation of when the market-based instruments, despite the overall market sentiment continued to be a new intra-day peak . This set the day with a good trend, as "DOX" continued its upward movement, leading to strong profits.
(a) testing the morning range, representing about 50% of the first increment; (b) two-periodny roll formed micro-model "cup with handle"Finally, as you can see an explosive move in "DOX" does not go out of the rising channel. Connecting parts together - finding a potential market-based instruments in the larger picture, then, turning to monitor intra-day picture - can be effectively used for a successful trade. But if market-based instruments is not in the field of view to focus on it, as you might expect his subsequent conduct in the crucial day, such as the 16 th of November? I believe that the establishment of a weekly list of coincidences "as well as the list of persecution" big picture is the only way to focus on a market-based instruments, to move to a smaller time scale.
In trade, the main concentration. The more you try to see the smaller, usually you see. Night study, which I do, looking at hundreds of charts, allow me to build both lists. These are the lists where candidates are introduced for trading on the movement and trade in the jerk and the afternoon trend. There are things that can be seen when viewing the manual many schedules each day, which can not be detected during normal computer viewing patterns. As I like to say, "speculation is the observation."
Forex Magazine
based on www.hardrightedge.com
based on www.hardrightedge.com
No comments:
Post a Comment