StockFetcher Forums · Filter Exchange · Range Contraction/Expansion Filter<< 1 ... 7 8 9 10 11 ... 12 >>Post Follow-up
johnpaulca
11,312 posts
msg #69751
Ignore johnpaulca
12/10/2008 1:23:32 PM

Thanks Alf.... I am still waiting for a shark....when was the last time you this pattern???

johnpaulca
11,312 posts
msg #69752
Ignore johnpaulca
12/10/2008 1:27:27 PM

Found one DTV...had an error in the filter...fixed.

alf44
2,025 posts
msg #69753
Ignore alf44
modified
12/10/2008 1:38:38 PM

johnpaul...funny you should mention "sharks"...

...first of all...they're pretty rare !

But...right now...as we speak...SPY has a "shark" pattern on the daily chart.

Of course, that WON'T be "official"...till after the Close today...so remains to be seen if it will hold up !

As I'm sure you know (according to the filter) ... a "shark" ...is... 2 consecutive Inside Days ! fwiw


Regards,

alf44


johnpaulca
11,312 posts
msg #69754
Ignore johnpaulca
12/10/2008 2:15:58 PM

Like this:

Image and video hosting by TinyPic

alf44
2,025 posts
msg #69755
Ignore alf44
modified
12/10/2008 2:27:53 PM

SHARK !!! :8^)


alf44
2,025 posts
msg #69756
Ignore alf44
modified
12/10/2008 3:08:46 PM

FYI: Windups

Windups are a 2 day pattern ---> an Outside Day...followed...by an Inside Day !

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These are also fairly rare...but a pattern I like to watch for.

Today...there are numerous "Windups" being printed.

Of course, again...won't be "official" until the Close (so remains to be seen) !


Regards,

alf44


johnpaulca
11,312 posts
msg #69760
Ignore johnpaulca
12/10/2008 3:56:43 PM

How do you trade them windups? Like the shark pattern?. I will use a MACD to see short term momo, I will be looking for the faster ema above slower ema and the slower ema above zero preferably. I will set my stop just below the higher low (for long entry). DTV is a little tricky because of the ema(100) right above it. My best guess is it will pop if the market moves up.

alf44
2,025 posts
msg #69764
Ignore alf44
modified
12/10/2008 6:20:28 PM

johnpaul...

...I trade ALL of these "Contraction Patterns" pretty much the same way.

I'm speaking about Sharks, Inside Days, NR4s, NR7s, Windups...even (narrow range) Dojis !


"Sharks" and "Windups" (though different) ...are just "2 day patterns"...with an Inside Day on day 2 !

---------------------------------------------------------

The thing to keep in mind with these patterns is...there isn't necessarily any "directional predictability"...with ANY of them. They are neither Bullish or Bearish !

They are events on a chart...

...where Range Contraction has occurred...

...where Range Expansion is to be expected...

...and...where Low-Risk Entrys are possible !

This does NOT mean however...that YOU can't approach them with your OWN "directional bias"...based on your own chart interpretation...and WHERE on the chart these patterns appear !

And, of course...any good trader and technician should do exactly that !

----------------------------------------------------------

Now...as to the entry technique(s) I like to use...

Since (as I said) these patterns are neither "Bull" or "Bear"...you need to be prepared to "go either way" (as it were).

So...

Plan A :

If price breaks ABOVE the HIGH of the preceding (Inside) Day...GO LONG with a Stop at the LOW of that preceding (Inside) Day !

If price breaks BELOW the LOW of the preceding (Inside) Day...GO SHORT with a Stop at the HIGH of that preceding (Inside) Day !


Plan B :

In this approach I use the "Stretch" number...it appears in the far right column of the Range Contraction/Expansion Filter ! This stretch number changes daily and is based on an average of the extremes in the daily ranges of the particular symbol. The "Stretch" number is added AND subtracted to the OPEN to give LONG or SHORT entry price levels. This is something that Toby Crabel wrote about in his book and is a method called ... Opening Range Breakout (ORB) ! (look at the filter to see exactly HOW it is calculated)

If price breaks ABOVE the "OPEN plus Stretch"...GO LONG with a Stop at the LOW of that preceding (Inside) Day !

If price breaks BELOW the "OPEN minus Stretch"...GO SHORT with a Stop at the HIGH of that preceding (Inside) Day !

----------------------------------------------------------

That's it !

Two different (but similar) entry methods !

The point here is...you are trying to catch a potential "Trend Day"...that is...a day where the OPEN and CLOSE...are at opposite extremes. You are hoping to enter on a breakout of the Opening Range...hopefully early in the trading day. You are hoping to participate in a Wide Range Day !

Good Luck !!!


Regards,

alf44


tdavisfn
13 posts
msg #69767
Ignore tdavisfn
12/11/2008 12:14:08 AM

LOL, aren't the DOW and the S&P Sharks?

alf44
2,025 posts
msg #69768
Ignore alf44
modified
12/11/2008 12:38:19 AM

tdavisfn,

The S&P 500 Index AND the NYSE Composite Index BOTH formed "Shark Patterns" today !

The DOW 30 Index did NOT !

It came close... but the DOW 30 didn't technically meet the "2 consecutive inside days" requirement ! fwiw

--------------------------------------------------------

Regards,

alf44


PS. Obviously, there's nothing magical about a "Shark" or a "Windup" ! The fact that the DOW 30 didn't precisely print a "Shark" doesn't really mean that much. The DOW 30 DID print both an NR4 and an NR7 which displays Range Contraction...so...the implications for possible Range Expansion are still very likely !!!


StockFetcher Forums · Filter Exchange · Range Contraction/Expansion Filter<< 1 ... 7 8 9 10 11 ... 12 >>Post Follow-up

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