• sharpshorts
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  • Birthday January 30,1954 (63 years)
  • Gender: Male
  • Location: Lyman SC
  • About Me: E-mini Futures Day trader - Trade bum - been at it since before discount brokers were the norm and computers were just a gleam in Bill Gates' eyes...
    Interests Day Trading Equities and e-mini FUTs -- SharpShorts was the name of my business many years ago. I specialized in sales, restoration and service of interesting cars and motorcycles. The name sharpshorts was taken from a character's dialogue in the 1970s underground comic strip "Fat Freddy's Cat"...a sharp short meant cool car (amongst other things).
    My trading blog - https://sharpshortsdaytrading.blogspot.com/
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The MAC Trend Slingshot pattern
More One-Two Punch chart templates and trade opportunities:
(Yesterday heading into the major market close)
1-2 punch.jpg     (Today before the major markets open)1-2 punch 2.jpg 


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The MAC Trend Slingshot pattern
The One-Two Punch is another set of signals for anticipating price REVERSALS...
This pattern is related to an MT SLING pattern but this one is using the Stochastic and the MACD "fast" EMA. ***

***Note - I apply a 4 period Weighted Moving Average to the standard  "fast" MACD EMA line which soothes it out quite a bit but does not change its relationship to the MACD Signal EMA line...doing so does not change EMA cross-overs by very much either***

With or without price -to-indicator divergences it's often good for a 10 tick trade
(+$50 if trading the Dow 30 e-mini futures and 1 contract)...

In the snap-shot below, the blue vertical line is the "when"...IE: both signals have printed. This alerts me to place my entry for an anticipated reversal. You can see the different entry areas that are presented on the different time frame charts...

1-2 punch reversal.jpg
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Keep it Simple
The old Two-Step pattern happens very often, in all markets and on all time frame charts.
Sometimes you can use them as additional technical rationals for taking a long entry...

These two charts show how indicator signals can be different between two very similar time frame charts but PRICE ACTION is the same on both.
 
Untitled.jpg 
Another very short term chart below with 3 examples of what I mean by Two-Step PRICE ACTION patterns. They continually occur, even on a chart that spans only 10 minutes in total...

By themselves they are not necessarily trading signals per-say but they can help you describe price action movements that have already occurred (IE help you to read a chart).
Sometimes they can help you to anticipate a reversal. Every Two-Step pattern is different, in the length of the initial trend-leg and length of the secondary trend-leg(s).
...some will make equal lows (A - B) or a higher 2nd low (C - D) or a lower 2nd low (E - F).

They don't automatically suggest that price action is about to reverse but they often do.

2 Step II.jpg
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FLO TRADES system
A mechanical swing trading method requiring putting on just 3 trades per month, IE
Buy the First & Last Mondays plus the Friday before OEX of every month.
It appears to have about a 75% winning history and uses just 2 simple rules.

FLO TRADES was developed by me but borrowing heavily from the "seasonality"work of Larry Williams. Mr Williams applied his methods very successfully in the commodities markets, making millions. He is also the inventor of the widely used Williams %R chart indicator.

I've adapted selected parts of his ideas and applied them to the S&P 500 e-mini futures market.
Although I have not actually traded using this,  I have been tracking it's results since late 2015. 
If you have an interest I've created a FLO TRADES page on my blog that explains the ideas in much greater detail.
https://sharpshortsdaytrading.blogspot.com/p/flo-trades-swing-trading-system-first.html

The charts below show the trading rules and entry arrows for the past 3 months on the ES e-mini futures and the SPY ETF.
Note that tomorrow is the last Monday of May, Memorial Day holiday, so no entry will be initiated...
flo.jpg      




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These things can go either way
You could be right...the 'reasons' why patterns fail or work is not all that important to me.
What's important is that they do work with regularity...

One that worked - without the scales you can imagine any symbol on a 3 month daily chart...
or
a 15 minute inter-day chart spanning a single day
or
a very short term tick chart covering a 1/2 hour of price action. 

Since you never know when they will work until after the fact , you must decide what type of trader you are...an investor using daily charts might see the pattern once every three months...a swing trader may use a 15 minute chart and see the pattern once a day...
a very short term scalper may see the pattern several times every day.

Every trader must decide how long they are willing to wait to see if any pattern will work...and how much money to risk on each one.
DIV MT SLING.jpg

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These things can go either way
Very nice catch...50% over-night...can it be repeated often enough?
"trade the same security with consistency, they know what pattern" is a fair assumption IMO.

ocrx.jpg

I
 trade  the YM day after day, just watching the charts...here's another one of my million favorite patterns.
2B Dragon.jpg
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These things can go either way
I got a million of 'em[wink]
I see other reliable patterns all the time...most are usually associated with daily charts
but I contend that they form on inter-day charts too...price action is price action regardless.
Here's a H&S I spotted toward the end of yesterday's session on a 30 minute...
(it was up to the overnight traders to finish off what the major market traders left unfinished)

H+S.jpg
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These things can go either way
Well, so much for divergences being dependable forecasting tools every time...
Expected reversals (ERX break-out...ERY break-down) and got the exact opposite! 

ERX ERY.jpg
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These things can go either way
Energy ETFs anyone? Potential ERX bull and ERY bear swing trades...
ERX for the bulls:
 Price printed a double bottom with divergence on the MACD histogram and on the Awesome Oscillator, which is drawn as a histogram and placed in with price. Stochastic looks to be in the process of developing a Slingshot to help price break-out of it's down trend ...
ERY for the bears:
A double top with negative divergence and a negative Sling that may help price break-down below the up trend line. ENERGY.jpg
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Front running down-to-up reversals
Hello Littleshark...my trading chart software is ApexTrader - provided by my broker ApexFutures.
I do have to pay for data for the CBOT and CME symbols I trade ($10/month).
NOTE that they do not have equity data sources so you cannot use it for stocks...Most on-line discount equity brokers will provide software and data if you have an account with them.

Also you can get an excellent charting software for free from MedvedTrading.com that has all the great charting features as well as the extra bells & whistles of portfolios, quotes, alerts, news etc.
I've been using MT along with ApexTrader, using my existing data provider...I very much like their software.

You can run it with free real-time streaming equity quotes using Yahoo data, which includes back-fill data for daily and inter-day charts. 
Their free version will allow you only two open charts at a time and limits them to 3 indicators max. Can't beat the price so try it for a while before subscribing. Subscribing is less than $200 a year for unlimited functions...Their previous charting software was QuoteTracker...

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Front running down-to-up reversals
Re “Tinkering with the TRIX's" settings...
Here's a picture explanation of some of the tinkering I've done.
I just set up a test chart and keep changing the parameters until I get results I like.
You can do this with almost any oscillator. 
The MACD is used as a 'base' for comparing the changes to the three TRIX EMAs used.
Although both studies are similar to each other, there are subtle differences in the EMA crosses
and the when the histo bars change direction...

(BTW - I don't pay much attention to the numbers in the study panes except for the zero areas)

1 90 percent.jpg
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Front running down-to-up reversals

Hi Koog. so you are “Tinkering with the TRIX's standard 18 setting” – -- Everybody's software will render indicators slightly differently. For example, my software shows the standard TRIX as a 20 period LINE that oscillates above and below a zero line. 

The beauty of good software is the ability of the user to make adjustments to parameters in order to best ”see” what they want to see. For me, I like setting TRIX to a 5 or 6 period and displaying it as a histogram. 

It may take a bit of experimentation to find the settings that talk to you and work best for your trading preferences...Sometimes the standard settings do that, right out of the box. In my case, the standard MACD settings do that.

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Front running down-to-up reversals
Hi Koog...Normally, the direction of price and the direction of the indicators will be the same.
That makes sense since indicators are created by applying formulas to prices...right?

That is, if price makes a lower low compared to its previous low then you usually will see the indicators also make lower lows compared to their previous lows.
When indicators do not mimic prices, they are diverging from price.

Spotting divergences is not a perfect science and sometimes they are much more obvious than other times.
Some indicators are designed to react very quickly (histogram and stochastic) while the MACD EMAs are slower to react to price action...

This picture describes "Normal" price-to-indicator action and "Divergent" price-to-indicator action.

Divergences.jpg
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Front running down-to-up reversals
Ace has always been the go-to man for stalking stocks and sectors via fundamentals...

Except the YM, ES and NQ e-minis, I've stopped trading everything else...for a host of reasons.
But I still appreciate ideas and charts from everyone.
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Front running down-to-up reversals
Some more thoughts on reading charts and trading... Read em and trade em.jpg 
The red dots and white diagonal line high-light the down trend (price making LH's and LL's.
The indicator-to-price divergences suggest the possibility of immanent direction change.
The lime dots high-light the new up trend (price making HH's and HL's).

BTW - - Do you remember QuoteTracker software? The Medveds have a new software program available:
https://www.medvedtrader.com/www/frontend/production

Works the same way as before, is still free and has many additional features added.
It can use your current broker's data feed for 2 inter-day and/or daily charts plus it can
be run simultaneously with your current software without hogging CPU or memory resources.
 So if you have the screen real estate available, download it and check it out.
An example of one of my Medved Trader layouts.
MT daily+ tick.jpg
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