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October, 2015

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Weapons hot

The following chart is pretty busy – but don’t go crazy with all the lines. Just follow the numbers. What’s happening here is that I’m looking back in order to look forward. The indicators have been used to better see what happened and how I may approach similar setups in the future. I’ve basically combined various ‘weapons’ from my arsenal to attack the chart. [click chart for much larger view]     DISCLAIMER: The informationRead More

What people want – and why they won’t get it.

The more I study the true experts at financial trading the more I discover some common themes: 1.They struggled initially. 2.They failed repeatedly. 3.They never gave up. 4. They learned from painful mistakes. 5. They put in crazy hours over many years training their brains. 6. In summary they shared some ‘core psychological characteristics’. Warning  – this is a long one, so if you need to bathe a dog please do that first. Look, ifRead More

What about Binary Options?

Binary Options (BO) trading is another way of making a few quid. It’s far simpler than spreadbetting in that you don’t need to set stop-losses or work out risk to reward ratios etc. [Please note our SYP.] The basics of one type of BO trading is this: 1. You decide if you’re going to bet if price on whatever instrument will end higher or lower than your entry point. 2. You place your bet. 3. YouRead More

Skill acquisition and training

It has been on my mind for some time, how new traders develop in their acquisition of skill. There are several different models out there on the net, not specific to traders but quite applicable. In the diagram below I present the Dreyfus Model of Skill Acquisition (adapted from Wikipedia) I think this is important for the following reasons: New traders can benefit by self-reflection by placing themselves at various stages of development. They seeRead More

Harmonic trade – practical aspects

The trade in the annotated chart below shows how a Cypher pattern was spotted and trade taken to successful completion. Full credit is given to Alexander Nikitin from Tradingview. Big thanks is given to Alexander for his fine and generous work. This trade was live earlier in the day. I had questioned whether the D point met the Cypher criteria. Alexander explained the situation very clearly – and the relevance of the D point isRead More

Harmonic Pattern Sifting

Harmonic patterns are often referred to as ‘advance patterns’. This article does not go into the historical basis or evidence for the foundations of their use. There have been numerous statistical analyses of how these patterns can predict price action. No evidence is supplied for the latter. It is for traders to direct themselves to find these things. In this post the Harmonic Pattern Sifter is presented (without warranty). This tool is an algorithm thatRead More

The so-called Fearless State

Mark Douglas is commonly credited for coining the term ‘the fearless state’ in his book Trading in the Zone. Lots of other people have probably talked about this state of mind. But what is it exactly? I explore but I disagree with some of what he has said – or the meanings put on what he has said. For the avoidance of doubt, I’ve written this not to win a point or score a point.Read More

Revisiting the Williams Vix Fix

In May 2015 I had briefly visited the Williams Vix Fix (WVF) when I was ‘Rethinking indicators’. On and off since then I had explored various setups on the WVF. Like most things in trading the importance of some aspect doesn’t quite hit you until later on. In the last few weeks I had been backtesting the WVF and came up with some conclusions that it is a workable strategy for delivering overall profits. InRead More

The ABCD harmonic

The ABCD harmonic is one of the simplest, yet most fundamental and profitable patterns to trade (says Scott Carney). Carney’s criteria are freely available on various internet sources and on YouTube. Importantly, finding the pattern and ensuring it is accurate is only the first phase of any potential trade setup. There are several other steps to follow after the pattern is identified for deciding if to enter and pre-programming exit points. This is not aRead More