Here is the way my charts look lately, with the one trade I took this morning. +2.75 pts. This chart is built around a primary setup, and the rules for this setup are pretty simple. First, price needs to be near (1) the yellow dots (2) the dashed yellow line and (3) the CMA. Second, the beads and paintbars need to agree with the price. Third, there needs to be a current or very recent PattyB entry signal. Looking over some recent data makes this setup look promising, and whenever I get a chance I will backtest over months of data to be more sure that it “works.”
Exits are managed like I’ve been managing all my trades lately. Combination of trailing stops and “magenta” fib extensions (you can see the fib extensions getting me out of this trade, as they are the red clover-shaped dots in the panel just under price action).
Notice that I’ve modified and cut down on the number of beads I’m looking at. I had mentioned in a recent video that I was planning on evaluating everything and getting down to just the essentials. I think I’m closer now. Although the top line of beads represents the eotpro GVolume Oscillator, I have added the actual oscillator back on top of the PattyB as well. It’s such an important indicator that I’ve decided I want all the nuances of it available to me, should I want it.
Sorry, no video today… I’m out of town and without my headset (again!).
I’m not sure I’ll be able to trade Wednesday, but I’ll definitely be around Thursday and Friday.
December 24th, 2007 at 8:36 pm
nice trade…i never understood how u can get the fib. extensions to plot w/o drawing a fib. grid…the indicator automatically defines the price range for the ext., or do u do that? if its an automatic deal, i need to try and copy that
December 25th, 2007 at 12:27 am
Yeah, the indicator has inputs for which extensions to use, and what strength of swing highs and lows to use to calculate them. Further, my custom version weeds out all the extensions that are not within the eotpro.com’s “profit-taking” zone, based on their end-of-trend indicator.