David Waring

Hi ezambrandt,

Excited to see that you seem to have really followed the lessons well. Think you are definately moving in the right direction here.

Best Regards,
Dave

Thank

 

Petr

Hello, David! What do you think about gold? Do you think that if today gold will close more than 900-905 that its good chance for buynig?

Thank

 

David Waring

Hi Petr,

Glad to hear from you and thanks for posting the chart that makes it a lot easier for me to see the analysis.

I have been watching the triangle you have outlined in gold as well. It would be hard to argue that the longer term trend in gold is not still up and fundamentally I don't see anything near term that is going to change that. So with that in mind yes I think if the market breaks the top side of this triangle that it may potentially head higher and would therefore be a good opportunity to look at for a possible by.

Please remember that I am not a financial adviser and don't give trading recommendations that's just one traders opinion to another.

Best Regards,
Dave

Thank

 

Petr

I understood that person on the market have to make desicion for himself, in other way its impossible to win=))

So I didnt analyze gold as a technical analysys before this day and have waited for good day for open position because of fundamental factors: inflation, weak dolar, low gold to oil price, commodity boom... Only one thing its not for buyng gold now - COT (may be smth will change in tomorrow COT).

Thank

 

firewalker

Hi David,

I wonder how valid those patterns are. ? Which one is the number one in ranking…are ther statistical researches and do you know where to get them ??

As I learned from Tom Bulkowskis Homepage… there are 10 of the best candlestick patterns. Validity …
The number one is three stars in the south, three line strike, three white soldiers,
Identical three crows, engulfing bearish, morning star,three black crows,morning star doji,three outside up, evening star…

Now my intention is to look for formations lets say head and shoulder and then see, if the candle stick patterns confirm the trend direction..

Plus two or three indicators MACD ; RSI , ADX..

I think this procedure will increase the probability
It would be great if you know a ranking of chart formations

Yours truly

Firewalker

Thank

 

David Waring

Hey Firewalker,

Glad to hear from you.

No unfortunately I do not know anywhere that has the rankings of these patterns and I am not sure if it would be possible to program them in and backtest them like it is for some candlestick patterns.

Sorry I could not be of more help on this one.

Best Regards,
Dave

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Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

Thank

 

firewalker

Dear David,


thanks für prompt answering.

I put the same question to Tom Bulkoswski. Here his answer



The quizzes were written long ago when I didn't pay much attention to candles. And yes, I trade by using chart patterns. Candles are less successful entry and exit signals, as I found out when I researched material for my "Encyclopedia of Candlesticks Charts" book.

You can find pattern rank here: http://thepatternsite.com/rank.html


Hoestly I did not yet understand totally…
So I am looking forward to develop a ranking of the 10 best chart formations….

Head and shoulder, triangeles, flags, wedges and so on..

And then I intend to combine them with the candle patterns……


I know quite well that there are probabilities – no securities…

Wish you a great time –


Yours truly

Firewalker

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Swedish

I have one question concerning the symmetric triangle. In your example the symmetric triangle is shaped during a downtrend, and after the symmetric triangle is shaped the trend is still down, at least for a while.

Is this the most common scenario? If the symmetric triangle is shaped during an uptrend, we can assume the following trend to be up as well?

Best regards,

Fredrik

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CVD

David,

when do you call a triangle-line "broken"? When a 1-minute body closes outside the triangle? or a 5min (for daytrading of course). I assume that when a body's shadow goes through the supp/resis. line the triangle is NOT broken right..?

Thank

 

David Waring

Hi Fredrik,

Yes generally traders view triangle patterns which occur during a trend as a continuation pattern meaning that they expect the breakout to occur in the direction of the trend.

Hope that helps.

Best Regards,
Dave

__________________
InformedTrades University | IT Shopping Guide | Site Map


Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

Thank