RO
roofer
Rep: 3,689
Posts: 3,574
craft- i have been posting my best work here. i guess this is my cave! i am sure you noticed that all three charts showed what is now my highest probability setup.draw a simple line connecting 3 pivots that ends in fib box. anchor medianline set on that line. price will go to medianline 90% of time....
MR
mreiserer
Rep: 110
Posts: 2,220
Thanks for sharing Roofer. I've been studying this. Can you explain what you mean by "anchor medianline set on that line" ?
RO
roofer
Rep: 3,689
Posts: 3,574
m- most of my charts as of late have been filled with simple red lines connecting 3 pivots...i have not gone public with my rules for the time being... but let this suffice.. though euclid ( inside joke jim) started with the point( that which has no part) i start with a line(breadthless length) that connects three pivots( i have one rule about the middle pivot that i have not gone public with)..... if that line terminates at key fib or in fib box then it carries a frequency such that a medianline set anchored on the first and 3rd pivot will have price go to the medianline 90 % of time.look closely at the green sets on these charts... they are driven soley by those rules...
Click image for original size
Click image for original size
Click image for original size
RO
roofer
Rep: 3,689
Posts: 3,574
think this through with me.. you know i like to trade at extremes.. you know i like to trade with a tight stop based on 1/5th the distance to the closest line..here i have a setup that through exhaustive testing shows a 90% success rate while AT THE SAME TIME generates a flatter medianline set than other techniques thus giving me a closer line thus a closer stop.you will find that using this technique you will get alot fewer retests to get on board.. it is the nature of setup...obviously skilled traders have been pounding this all along.. just had to find it for myself..
RO
roofer
Rep: 3,689
Posts: 3,574
now take what i am showing to the logical conclusion...if these sets carry with them a special frequency.... then the coming together of lines from these special sets must offer good trade location ... you decide
Click image for original size
RO
roofer
Rep: 3,689
Posts: 3,574
thus in the DXO, skilled traders were calmly sitting on the confluence given by the standard and simple line sets i am showing.. trading with confidence, knowing 90% of time price would go to the medianline of the green set.again , i personally had just not thought this through until about a year ago to the point i created for myself a few simple rules...
Click image for original size
RO
roofer
Rep: 3,689
Posts: 3,574
chart...less and less i care about theory... more and more i simply want to know what is working in the markets....
Click image for original size
MR
mreiserer
Rep: 110
Posts: 2,220
Awesome! Thanks Roofer. As far as your statement "you will find that using this technique you will get a lot fewer retests to get on board.." if you don't get a retest do you let the trade go or do you find other means to get in such as a small wave 2 pattern before it takes off or an MA cross?
RO
roofer
Rep: 3,689
Posts: 3,574
no because the setup itself is a trade entry, if everything is in place that i look for in a trade i trade at the extreme.if my other tools are not optimal, i will look for retrace...what i am showing is a setup that is a break from other work...
TO
TonyC
Rep: 99
Posts: 471
Roofer, this is pretty amazing technique. Thanks .
M, I think u could approach it as if the third contact point was a tradable PTA, depending on what u r looking for as far as context ,setup and synergies there, but the Kane "line-cross' entry techniques may be ok. Obviously u wouldn't use a pullback entry techniques if u know ur chance for getting a pullback are low.And fm Roofer's work he says retests are rare.
Generally speaking, I think an adaptive approach is best.If the swing leg going into the PTA is linear then a TL cross is fine.And if it looks sinusoidal then maybe u can opt for the MA entry techniques etc.The entry part is quite easy IMO, but u have to trust that ur PTA is valid in the first place, then ur trade management plan takes over. The fact that u get 90% ML reach is a tremendous edge.That's helpful to know that as far as managing ur exits.Another way u could play this,may i suggest, is to go down on lower time frames to look for setups to get on board before the ML is reached and ride the swings down there.Again u have to assume and trust the pt3 area in this context is valid.
T
M, I think u could approach it as if the third contact point was a tradable PTA, depending on what u r looking for as far as context ,setup and synergies there, but the Kane "line-cross' entry techniques may be ok. Obviously u wouldn't use a pullback entry techniques if u know ur chance for getting a pullback are low.And fm Roofer's work he says retests are rare.
Generally speaking, I think an adaptive approach is best.If the swing leg going into the PTA is linear then a TL cross is fine.And if it looks sinusoidal then maybe u can opt for the MA entry techniques etc.The entry part is quite easy IMO, but u have to trust that ur PTA is valid in the first place, then ur trade management plan takes over. The fact that u get 90% ML reach is a tremendous edge.That's helpful to know that as far as managing ur exits.Another way u could play this,may i suggest, is to go down on lower time frames to look for setups to get on board before the ML is reached and ride the swings down there.Again u have to assume and trust the pt3 area in this context is valid.
T
