The Chart Pattern Trader

Ron Walker Has Had Over 200 FollowersHas Been a Top Public ChartList for Over 1 MonthPrevious "Hall of Fame" ChartList Author Rank: 8 Followers: 255 Votes: 276 Years Member: 10 Last Update: 6 February 2016, 3:08 Categories: Trend Analysis
Chart Patterns
Swing Trading


Sunday, January 31, 2016 Update:

My trading system has produced a profit of 724 % since May as of the close on Jan 29.

My Trading System has produced a profit of 115 % since the January bottom on Jan 20

Since the November high my trading system is up 346 %. Just with the last two trades using Future contracts.

My indicators have nailed the turns in this market..

Shorting at the November high, I locked in gains of 208 % and 231 %, which is 10,500 per contract and 11,700 per futures Contract.

Since the May Highs:

SPX Long Term Short Position UP 175 % as of Friday's Close

SPX Swing Trade Position Up approximately 724 % with new long position as of Friday's Close


Update: Jan 31

We Compeltely Finished Our Exit Strategy for Swing Trades

Downsizing Positions, Tightening Up Stops, and Looking for a Reversal

Converting paper profits to cash on SPX and NDX of over 200 %. Winning!!!!!

I've locked in gains at key support on short positions and went long.

I have been very successful with recently locking in 208 % and a 231 % gain near support levels.

I went long at key support on January 20.



The Extreme Point Rule

The directional movement indicator is a powerful tool for spotting shifts in market momentum. A buy signal is given when the positive directional indicator ( DI) crosses above the negative directional indicator (-DI), and conversely, when negative directional indicator crosses above the positive directional indicator a sell signal is generated. When the market is trendless the DI lines crisscross back and forth, which can generate false signals.

Solely following the DI and -DI cross signals by themselves can lead to whipsaws and overtrading. Steven Achelis offers a solution to this problem using the 'extreme point rule' in his marvelous book, Technical Analysis From A To Z. Achelis points to the creator of the directional movement system J. Welles Wilder, and his simple trading rule, to help prevent whipsaws and reduce the number of signals that a trader acts upon.

The extreme point rule requires a trader to mark the extreme price point the day in which the DI and -DI cross. According to Achelis, the extreme point is highest of point of a session when DI crosses above -DI and is the lowest point of the session when -DI crosses above DI. Buy or sell signals are triggered when prices move beyond the extreme point.










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