DayRaider Upgrade examples
Damn....I thought he was all gaseous and all that but he does make valid points, PitBull's chart does infact throw out patterns that are usually symmetrical, at least on that one.----------
Shouldn't you be able to add entry/exit paint bars when such conditions coincide as well for idiots like (well like me....for example) that can't recognize patterns half the time....?
sorry, my initial answer was a little on the theoretical side; below are two screen shots of
DayRaider Upgrade that mechanically (objective, no emotion, just facts & figures & time rules) measures when
- Downtrends should continue to be sold
[*]Positions are covered when the Downtrend ends
[*]Long Positions are taken after the Downtrend Ends
[*]Uptrend continues via time rules and a second Long Entry is taken
[*]Uptrend goes into a Negative Deviation HS, long entries exited & new short taken
Paintbar matrix:
Orange = market top (look for overbought conditions/ exit longs, initiate shorts if Negative Deviation, time rule/ price rule apply ; if these bars do NOT occur at the cycle high, ignore
Green = Uptrend (look for oversold condition ending / exit shorts, initiate longs if Positive Deviation, time rule/ price rule apply; if these bars do NOT occur at cycle low, ignore
Magenta = Downtrend (look for lower lows to occur, if these plot on cycle lows, aggressively short cycle highs at time, price rules at descending Green/dotted Red.
Horizontal lines matrix:
Dotted Red - This is one of the 3 causes of all reversals taught in Fundamentals of Futures Trading course - Uptrends will honor this support and must create higher highs; Downtrends will honor this or a previous higher level and must create lower lows;
Green This outlines the two chart patterns that cause reversals up as taught in Fundamentals course; simply put, when the line goes up or is coequal and you have time / price rules hit, close shorts, enter long. This indicator works with the big white circles that find the lowest low of the market, where shorts should be closed and possible longs initiated.
Powder Blue This outlines the two chart patterns that cause reversals down as taught in Fundamentals course; This indicator works with the big yellow cirles that find the highest high of the market, where longs should be closed and possible shorts initiated. HS, DT and price climaxes are clearly caught with this indicator using the time / price rules of the Dow.
Other Logic
Stop losses are never outside the yellow or white dots when initiating a position. As support indicators rise, additional long entries can be entered with tight stops below. If the market is not honoring Uptrend rules then no more long entries are entered.
As resistance indicators descend, additional short entries can be entered with tight stops above. If the market is not honoring Downtrend rules, then no more short entries are entered.
ummm..yeah...the Deviation indicator is NEVER wrong [red & green horizontal lines of this indicator]..the HISTOGRAM at the bottom is merely a guide to measure the buy or sell formation and to confirm low risk entries as trends continue. That's how you really pile up the points and limit risk - you can keep selling during long downtrends and keep buying during long uptrends...the indicators rule, it's their field of battle - they take no prisoners, just check the One Minute Methodology chart (not shown) then click the mouse.
The Mechanical Day Trader
