Joe Ross
Active member
- Messages
- 192
- Likes
- 36
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.
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.
Last edited: