1-2-3-Formations and Ross Hooks

[Joe Ross]

The Ross Hook

Hi y'all,

I've been trying to relocate my password into T2W for about a month, or at least ever since this thread was created. I kept asking for it but it never came. Well it is here now.

I really don't have time to read through all the posts that were made in reference to the original.

My name is Joe Ross and I created the Ross Hook. In case you are wondering, umfowenu (also spelled umfowethu) is the Zulu word for brother. I was given that name by Africans who felt sufficiently pleased to call me that. I consider it a rare honor.

Definition in the picture at the beginning of the thread is incorrect. The Ross Hook is the bar preceding the one shown.

The definition of a Ross Hook is really simple: It is the first failure of prices to continue in the direction of the breakout from the #2 point of a 1-2-3 formation, a previous Ross Hook, or any type of consolidation--which includes a ledge, a congestion, or a trading range.

I did notice one post that said that prces often do not coninue beyond the point of the hook. That is true, and it is why we use the Traders Trick Entry.

The fact is that prices no longer trend as they did in the past. Instead they swiing up and down. There are many reasons for this but the main one is due to the use of computers in trading. In the past the Commercials knew how to keep a trend going and they milked the trend for all it was worth.

However these days the Commericals have stiff competition from the large pools of money traded in the form of hedge funds, and commodity pools of one sort or another.

These large pools of money tend to trade from tehnically based computer models as opposed to the Commericals who trade from knowledge of the fundamentals.

Since the large pools use technical analysis, they tend to be correlated--they all discover a trend within seconds of each other and therefore enter the trend with great force. Their buying shortens the length of an uptrend and also shortens the length of a downtrend. It all happens much too fast.

In addition, some of the computerized models are value based--they look at prices and determine whether they are overvalued or undervalued relative to where they have been in the past. If prices seem too high, the computer issues a sell signal. The selling by these large pools of money kill the uptrend, usually with some sort of consolidation taking place at the market highs. Ultimately, the selling starts to bring prices down and as prices fall, the trend-following computers pick up the fact that the prices are now trending down. They issue sell orders and again the market drops quickly. It drops until the value computers pick up the fact that prices are now too low, and the whole process begins again.

Of course, I am generalizing a bit. Real demand or far too much supply will create sufficient momentum to overpower the actions of the value computers.

These days it is more rare for a market to trend than it is for a market to swing. So, if you want to use the 1-2-3 formations and the Ross Hooks, learn to use the Traders Trick.

Wishing you all the best,

JR (umfowenu) your trading brother.

 

[DaveJB]

Cheers Joe.

 

[SOCRATES]

Hi y'all,

I've been trying to relocate my password into T2W for about a month, or at least ever since this thread was created. I kept asking for it but it never came. Well it is here now.

I really don't have time to read through all the posts that were made in reference to the original.

My name is Joe Ross and I created the Ross Hook. In case you are wondering, umfowenu (also spelled umfowethu) is the Zulu word for brother. I was given that name by Africans who felt sufficiently pleased to call me that. I consider it a rare honor.

Definition in the picture at the beginning of the thread is incorrect. The Ross Hook is the bar preceding the one shown.

The definition of a Ross Hook is really simple: It is the first failure of prices to continue in the direction of the breakout from the #2 point of a 1-2-3 formation, a previous Ross Hook, or any type of consolidation--which includes a ledge, a congestion, or a trading range.

I did notice one post that said that prces often do not coninue beyond the point of the hook. That is true, and it is why we use the Traders Trick Entry.

The fact is that prices no longer trend as they did in the past. Instead they swiing up and down. There are many reasons for this but the main was is due to the use of computers in trading. In the past the Commercials knew how to keep a trend going and they milked the trend for all it was worth.

However these days the Commericals have stiff competition from the large pools of money trade in the form of hedge funds, and commodity pools of one sort or another.

These large pools of money tend to trade from tehnically based computer models as opposed to the Commericals who trade from knowledge of the fundamentals.

Since the large pools use technical analysis, they tend to be correlated--the all discover a trend within seconds of each other and therefore enter the trend with great force. Their buying shortens the length of an uptrend and also shortens the length of a downtrend. It all happens much to fast.

In addition, some of the computerized models are value based--they look at prices and determine wether they are overvalued or undervalued relative to where they have been in the past. If prices seem to high, the computer issues a sell signal. The selling by these large pools of money kill the uptrend, usually with some sort of consolidation taking place at the market highs. Ultimately, the selling starts to bring prices down and as prices fall, the trend-following computers pick up the fact that the prices are now trending down. They issue sell orders and again the market drops quickly. It drops until the value computers pick up the fact that prices are now too low, and the whole process begins again.

Of course, I am generalizing a bit. Real demand or far too much supply will create sufficient momentum to overpower the actions of the value computers.

These days it is more rare for a market to trend than it is for a market to swing. So, if you want to use the 1-2-3 formations and the Ross Hooks, learn to use the Traders Trick.

Wishing you all the best,

JR (umfowenu) your trading brother.

I sympathise with you being a busy genlteman, as we are all ourselves also very busy too.

And because we are very busy, whereas you cannot afford the time to read through all the posts relevant to your creation, we are also individually and collectively also too busy to devote time in atttempting to solve riddles, whether inadvertent or intentional.

In your post above (line 8 and 9) you say, and I quote:~

" Definition in the picture at the beginning of the thread is incorrect. The Ross Hook is the bar preceding the one shown".

It stands to reason that if the bar preceding one the shown is the Ross Hook, then the Ross Hook as you call it, is nowhere to be seen, because it is not visible in the illustration as you describe it.

It would be helpful to members interested in your creation if the absent bar you define were illustrated.

In this connection, would you be so kind to illustrate the missing bar.

A chart showing an example of such a thing would helpful to interested members who are also overburdened with other considerations without the complication of having to strain to see what is not there in the first place.

Kind Regards To You.

 

[Joe Ross]

Socrates, if you had bothered to read the definition of a Ross Hook you would realize there is no missing bar. In the original chart posted by Roberto, he marked the Ross Hook using green letters. Anyone can take a look at that chart. The Ross Hook is the bar preceding the one he marked. Why was that so difficult for you?

 

[TheBramble]

Joe, don't take it to heart. Socrates just likes to play games.

Eveyone else understood.

 

[frugi]

:idea:

 

[SOCRATES]

Ah, thank you frugi.

 

[Roberto]

Thank you very much for posting here, Joe. As you rightly observe, we got off to a very inconvenient start because (as a couple of people promptly pointed out) I mislabelled the very first chart in the thread! In my haste to post I put "Ross-hook" (rh) on the reverse Ross-hook. However, overcoming the embarrassment, for the sake of complete clarity, I now attach the "corrected version" (which also shows a little more, I think, on a later bar, not completed when I originally posted). Sorry to have put you to the trouble of correcting, Joe; and as always, thanks for everything.

 

[SOCRATES]

Socrates, if you had bothered to read the definition of a Ross Hook you would realize there is no missing bar. In the original chart posted by Roberto, he marked the Ross Hook using green letters. Anyone can take a look at that chart. The Ross Hook is the bar preceding the one he marked. Why was that so difficult for you?

This is because I am following Bramble's lead, which is the consequence of not having any brains, either, sorry. But I am away for another two weeks, so there will be peace and quiet in my absence, I doubt it. <G>.

 

[frugi]

I could edit the thread so that the correct version of chart (above) lies at the top, but then I'd have to edit a few posts as well otherwise the thread will lose sense. Do people mind if I do this in the interests of (eventual) clarity or should I leave it be?

 

[Roberto]

I suggest you should leave it, probably. I ought to have posted a corrected version promptly as soon as people started pointing out my mislabelled chart! But I didn't, and now it would take a lot of editing to make it look better. Sorry!

 

[SOCRATES]

No, please Frugi, leave it as it is, because now it is really clear, thanks.

 

[Roberto]

I am away for another two weeks, so there will be peace and quiet in my absence, I doubt it. <G>.

I doubt it as well, somehow. But have a good trip anyway. Who knows what the mice will get up to while the cat's away?

 

[SOCRATES]

I doubt it as well, somehow. But have a good trip anyway. Who knows what the mice will get up to while the cat's away?

Hello Roberto, thanks for your good wishes. I think you ought to leave it as it is and not go to all the trouble of correcting it because it is perfectly alright as it is and everyone can follow and understand it clearly now.

Kind Regards.

 

[Joe Ross]

Now that I found this "quick reply" thing, I want to openly thank Frugi for correctly pointing out the proper place for the Rh and also to profusely thank Roberto for taking the time and trouble to correct the chart.

Being basically computer illiterate, I never could have figured out how to change the chart myself, let alone how to post a new chart on the forum.

Whenever you see a post by me on any forum, it is placed there by my personal assistant Susan, who is dilligent to regularly post from my writings onto a number of forums.

I am at that stage of life where I am more interested in helping others to trade successfully than I am about making piles of money. In June I will have been trading for 48 years and I'm still trading and still having fun with it.

Susan has not been posting to this forum. But I will ask her to start.

I have been requested to write an article (I assume about the Ross Hook) by someone named Daniel Jonas. But I have no idea who he is or how to submit an article. I would appreciate it if anyone here can tell me how to make contact.

Thanks for the help.

Joe Ross

 

[SOCRATES]

Now that I found this "quick reply" thing, I want to openly thank Frugi for correctly pointing out the proper place for the Rh and also to profusely thank Roberto for taking the time and trouble to correct the chart.

Being basically computer illiterate, I never could have figured out how to change the chart myself, let alone how to post a new chart on the forum.

Whenever you see a post by me on any forum, it is placed there by my personal assistant Susan, who is dilligent to regularly post from my writings onto a number of forums.

I am at that stage of life where I am more interested in helping others to trade successfully than I am about making piles of money. In June I will have been trading for 48 years and I'm still trading and still having fun with it.

Susan has not been posting to this forum. But I will ask her to start.

I have been requested to write an article (I assume about the Ross Hook) by someone named Daniel Jonas. But I have no idea who he is or how to submit an article. I would appreciate it if anyone here can tell me how to make contact.

Thanks for the help.

Joe Ross

If he sent you a Private Message, and from your post above it is implied that that is what it is,
at the bottom of the message you recieved you will see two buttons: FORWARD and REPLY.
Click on REPLY and type your message to him. Then click on SEND. The message will then be sent to him. It is that easy. If you write an article, there are lots of members on this website who surely will be very interested in your creation.

Kind Regards.

 

[Daniel]

Hi Joe, and thanks for joining the forum. I was hoping you'd contribute to this thread which is why I pointed it out to your colleague at Trading Educators. It would be great if you could stick around.

I also thought it might help if we hosted one of your pieces on the 123 and RH in the Lab as an easy point of reference for anyone reading the thread - I'll send you a private message about that.

 

[Bigbusiness]

1lot,

You might have to wait a while for a reply from Socrates becuause he said, in a post above, that he is away for two weeks. I don't think Socrates will change but you never know, a fortnigt in Butilins might do the trick

 

[DaveJB]

Butlitz, I'll be bound, training the attack Doberman's to savage anyone caught using the RSI <g>

 

[cj12]

socrates - you state that you do not know what instrument this is that you are talking about. yet you start to make observations about its volume (at a time which is clearly the open) and how that relates to the other proceeding (overnight) volume on the chart. you then state that the impact of this volume is obvious to you.

well, here is something that is obvious to me:

as you state to not having a clue as to what the instrument is, you would have no way of knowing if the volume on bar 15 is high, low or normal for the opening for that asset. therefore, without knowing what you are looking at, you have no basis to make your judgement upon - whether or not it is heavy or light accumilation. so, your observations MUST/ARE being made in hindsight. you then say that this is obvious to you, as if you are somehow gifted in some way! well, we are all gifted with the ability to make great market calls in hindsight, but that dont pay the bills.

i must admit that i was quite impressed by your posts when i first came across them on this thread. having looked into your past posts (especially the one where you claim to call the market in real time - which you commented on), well it would seem that again your skills seem to fall short. your calls are clearly incorrect and quite a way off. i can assure you, if you had traded your calls you would probably have lost money - unless used fairly wide risk parameters - something i believe you (wisely) dont agree with from previous posts. i have checked the historical dax tick data for the time in question on my cqg terminal (cqg is widely regarded to be the most accurate data source in the industry, for those who are unfamiliar with professional trading platforms)

i would appreciate it if you would stop being so aggressive to mr ross who has made the good attempt to help people on this thread. i appreciate you may not like him stealing your thunder so to speak, but mr ross seems to talk plain sense and does not make inaccurate claims of his ability.

sorry for making my first post a bit negative, but i hope something positive will come from it.

i am afraid that my trading activities take up most of my time, so i can not guarantee a reply. ( i am a professional scalper, not a professional poster)

martin Cole. is that your reply, it sure looks like you writing

sun