looking forward to it...
Let's hear it!
Always great to have a willing teacher - I will be reviewing this thread regularly.
Simba - will you be incorporating what you learned on digital filters as well? I am not a programmer and the discussion on digital filters (last time I checked....) was a bit over my head. Still, I am always willing to learn if results pan out from specific uses of those indicators.
Always interested in what good ole Simba has to say:-)
Will be watching this with interest. In the meantime will buy the book as well.
Thank you very much for the info. I looked through the contents and it really has all the info(and more) that I am interested in. I ordered the book, but it will take probably a week to get it.
Anyways, it will be interesting to see how we can apply those to FX.
Thanks Simba for your information ...most profitable system is pattern recognition like Suri did ..I think one of his indicator is ZUP ...
Forex Indicators Collection
1-mpower and prasxz:Thanks for your kind comments and for your kind words,hope that you can be interested enough in the patterns to contribute your usual trading wisdom.
What constitutes a Dragon?..check pic,a Dragon is basically defined by 1,2,3,4...very similar to a w bottom or to a double bottom with different trading rules and targets
Rules for a Dragon:
A-SECOND LEG..34 can be anything between 0.618 to 1.27 of first leg 23..THOUGH IT IS BETTER IF THERE IS NO MORE THAN 10% DIFFERENCE between the legs
B-HUMP height 23 MUST be 0.38 to 0.5 of distance from head to first leg 12
So,first thing we do when we think we have a Dragon is to draw fib retracements for 12 and see if 23 is between 38% and 50% of 12..and then we check that 34 is between 0.618 and 1.27 of 23...once we have a Dragon we go to our rulebook(next post) to check how to trade it
Dragons work in all timeframes and in all types of trading instruments.
ENTRY1:ONCE second leg is confirmed(4)...DRAW TRENDLINE from head(1) to Hump(3)..I prefer to draw it as neat as possible,with no outside points until 4 is formed,but really there isn`t much difference if we draw it straight trough the hump..remember,until 4 is not formed we don`t have the pattern...ENTRY is done when prices CLOSE above the trend line.
ENTRY2:when prices CLOSE above the HUMP level(3)
STOP:a few ticks below the lowest of the 2 legs,in this case,below 2
TARGETS:1-127% OF the second leg range
2-A previous swing high point
3-at or near the head level 1
You can chose,entry1,2 or both ,splitting your order size in 2...though I personally prefer 1
You can chose any of the targets,by themselves (close 100% of the position at a target level)or as a combo...though I personally use my common sense and if there is a previous swing high located near the 127% point..I chose that area as target area and,when there,I micromanage.
Will try to pick some Dragon in a smaller tf so that I can show you actual trades and my reasoning behind them..or if you find any please feel free to post it here.