Trade Chart Patterns Like The Pros

Suri Duddella has recently published Trade Chart Patterns Like The Pros (Specific Trading Techniques).

Suri says that he'll be here on the forums so take this opportunity to ask him some questions.

I think that I probably first met Suri in one of the Othernet chat rooms (probably #emini) a few years ago and we've exchanged some trade ideas since then. If I remember correctly, Suri's vehicle of choice when it comes to index futures trading is the YM - the Dow Mini - correct me if I'm wrong Suri.

There's a 10 page interview with Suri in the book Bulls, Bears and Brains: Investing with the Best and Brightest of the Financial Internet pages 275-285 that you might have already read.

Congratulations on getting your book out Suri. I was wondering if you thought any particular patterns worked better than others in the index markets ?

Sixty five patterns is a ton of patterns and once you step away from daily bars you can have so many patterns forming across different time frames ( Tic, one minute, 3 , 5 ,10 30 minute etc). How would someone be able to monitor all these? I assume that some advanced software can find these for us but that is just a guess. Thanks!


Bruce

Hi BruceM,

Thanks for your post and comments.

Yes, 65 patterns is a lot of patterns to watch. I have about 10-12 patterns which I auto-detect in TS. I trade 610 tick charts across ER2, YM, ES eminis and watch them.... I also trade stocks with A single Workspace with 5m, 60m, Daily charts along with a linked RadarScreen during intraday.

I don't expect anyone to know all 65 patterns. But I think anyone could take few patterns (3-4) of their interest and master them first. Then if their trading demands they could move on to others...

For my style of trading, I found Harmonic patterns (ABC, Gartley, Butttefly, Bat, Crab) are my favorite in addition to trading FibZone Pivots, Opening Range Pivots with other popular Geometric patterns like triangles, channels...

Let me know if you have any questions...

Regards,
Suri Duddella
http://www.suriNotes.com

Thanks Suri,

I was trained by someone who used 4 main patterns for all time frames. They kept statistical "Runs" and could tell what the probability was of generating a reversal signal based on how far priced moved from a buy or sell signal. Say I had a 15 minute sell signal in the S&P and it traveled 20 points down and only 5 other times out of 100 ( for example) the S&P dropped 30 points before a BUY signal was generated then my mentor would say that there is a 95% chance of a reversal from this zone. It was cool stuff! The problem arises when volatility changes or in his case when they changed the point value in the Big S&P from $500 per point to $250. It changed his numbers.

I guess I was wondering if you keep any stats on your signals in that way or in a way that shows how much "Open equity" is generated per signal ? Thanks for your feedback. It looks like you have a very comprhensive body of work there.

Bruce

Hi Bruce,

The book is presented as Reference Guide on how to trade a pattern with Entries/Exits with Targets/Stops etc.. It doesn't have stats but I have provided 'Trade' analysis with how/where to place Targets/Stops..

See the book video


I also post intra-day charts on my website as I trade them....

regards,
suri

Thank you. Sounds like a good read.

Bruce

congratulations on the new book, Mr. Duddella. May I ask you how you are doing? (I'm referring to your trading results)