• sharpshorts
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  • Birthday January 30,1954 (64 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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Front running down-to-up reversals
Littleshark, with StockCharts I just use the Snipping tool to copy a web-chart then paste it into M/S Paint for re-sizing and annotations.

My trading software has a lot of drawing tools built in to it but will still use Paint too...I like Gadwin Systems PrintScreen (free-ware) for snapshots because it can be configured to re-size, add a time stamp, save and name any chart window to a file I designate -- all with just a single mouse click or keystroke. 
I do a before (rational for entry) & an after (results) snap of every trade...At the end of the day I'll pair them up, do some more drawing and save them to another dated folder.

I've been doing it for years and years...

Snapshots are a great way to document and review good/bad trading days/weeks/months plus it makes filling out my statistic spreadsheets very quick and simple...just part of my daily routine and takes an inconsequential amount of time... but it really helps me stay on track with disciplined trading. 
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Front running down-to-up reversals
Littleshark, thx for spotting IFON.
I borrowed your chart -- moved MACD into the price pane and added comments.
With StockCharts, I have trouble seeing some indicator shapes when they are shown as separate study panes.

I contend that almost all price action & indicator patterns print regardless of the time frame you use.
DIV reversal.jpg 

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Front running down-to-up reversals
"many times seen share price move higher followed by a pullback before resuming the move even higher"

Very, very common price action.  I have not found a definitive way to tell when  there will be just a 'normal' pullback or if price will just keep dipping down further. 
 
Some times I'll take a very small gain or a BE on the pull-back and wait for another opportunity.  If I entered the trade well (like a couple of ticks below a downtrend line for example) and price then popped up but didn't run to my target, I may hold the position as it pulls back, perhaps as low as to the point where price broke the trend line, with hopes that a second push moves price up to my target.

Either way it's a WAG (guesses are sometimes helped out by my 'feel' for the current P/A). 

If price reversed with divergence before the initial run, I see a  'normal' pullback as an opportunity to add to my position (or to enter into a new position if I didn't play the divergence). It's sort of a second chance for taking the play. If price has also broken a recent trend line and then retraced, so much the better... 
I call those Trend Line Break RE-Tests...

Another similar trade with a funny name is the Money-on-the-Floor (MOF).  It is like a TLB ReTest except the initial pop usually makes a new relative high and the drop makes the 1st new higher low of a new up trend...either of the two trade patterns may or may not show MT SLINGS too...(I know, I know - way  too much information). But they all are based on basic price action patterns that continually repeat, day after day.

I have a Chinese menu of trade patterns that I use...at times I'll mix and match them, sometimes I choose one from column A, other times two from column B... 
Again I'll mention I only trade to the long side and rarely short. I just 'see' bullish reversals better than bearish ones. Short term scalping presents enough opportunities each day to keep me busy.
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Front running down-to-up reversals
Great, that was the idea, to present things that others might benefit from.

I have tried different MACD parameters but was unable to improve upon the std. setting...
I was able to adjust TRIX and others to better suit me. Ya gotta try stuff to come up with the answers.
 You may (or may not) find that you can begin to see divergences with the indicators
 that you are already using. I have seen them with the Awesome Oscillator, RSI,
Williams %R, CCI, Momentum and most others I've tried.

Alternatively, create a new chart template with an additional study
for the MACD (and/or stochastic) but place it below your current indicators
to easily compare whether they enhance or confuse your current chart reads.

The TRIX (as a histo) and Awe Osc over the MACD are compared... 
Histos compared                                     ---.jpg
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Front running down-to-up reversals
Koog - I don't experience a "reset" on my streaming charts - sometimes what appears at first glance to be a divergence will disappear as more bars get printed, if that's what you mean. 

Here's a look at a 3 minute per bar chart from the major market open at 9:30...(I've removed my normal stochastic from the study pane for the sake of clarity).
There are two sets of divergences, annotated by the diagonals drawn between the pairs of LL's that printed on the TRIX histo, price candles and MACD histo.
Notice that at A-B, the MACD EMAs are also divergent but at C-D they aren't...
In general, the MACD histogram will print divergences 'sooner' and more often than will the MACD EMAs.
DIV reversal.jpg
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Front running down-to-up reversals
Koog,
Re:   "The trade works allot better when you use what you know"
Agreed, excellent advice.


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Front running down-to-up reversals
Thx, that divergence set-up and exit was about as 'perfect' an example as I could hope for. 
I took three other trades today, got stopped-out on two of them for a 2 win/2 loss day. 

I  may not be describing it very well to others...I've been using it forever and by now it has  become automatic to me  --   I see it all the time, whether I'm looking at a daily chart or an inter-day chart. Divergence is easier to spot after price has already started to make its move. To use it as an early entry signal, you will very often need to anticipate that it may develop.

I do not short -- I only use divergence when price has been in a down-trend.
My definition of divergence (DIV):
If price recently made a couple of Lower Lows while an indicator made a couple of Higher Lows, then the indicator is diverging from price. 

Of course divergences don't always print before each & every price reversal nor does price always reverse just because there were divergences.
In the latter case I say that divergence failed to produce a reversal.

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Front running down-to-up reversals
Reversal scalps using divergence indicator signals...
Divergence plays a big part in my trading methods... I have multiple time frame charts open at all times on my trade station layout (Daily, minute based and Tick based).
Divergence prints regularly in all markets and on any time frame chart.

The example below includes a before and after look at a trade taken today...Both charts are watched for signals...a bracket order** is placed via the on-chart system on the 30 tick chart. (**my preference is to use a 4 tick stop and 10 tick target when trading the YM)

In this case the 30 tick showed 2xD divergence (the MACD histogram and the stochastic).
The TRIX histo also happened to show divergence...
Although the MACD EMAs did not show divergence (the MACD 'fast' and 'signal' EMA lines i.e. the trend indication), I anticipated a reversal anyway. The MACD EMAs are just slightly slower to react to price action than are the histograms and stochastic (oscillators)...
.01;05;04 +10 ..jpg In the study pane, there may be 1xD, 2xD or 3xD indicator divergences (EMA trend, MACD histo and Stochastic).
Entries always involve an element of luck but IMO using divergences enhances the odds of a successful "guess".
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The MAC Trend Slingshot pattern
Thank you for the welcoming post. Have I entered my initial post to the proper board?

I noticed that there's not much mentioned about emini futures trading on Ace's Place, which is the only thing I do nowadays. But I'll do some catch up browsing here to get up to speed with what other users are doing...I've followed Ace's efforts since the C/S days and have always benefited from his and his reader's ideas.

The constant up and down action of price is what I just kept coming back to over the years.
The markets seem to me to continually wash, rinse and repeat this pattern.
I have asked the same question as most technical traders - how can I consistently trade this pattern successfully?
I chose to narrow my options down and concentrate on taking longs only.
I have tried all kinds of trend following and oscillator indicators and have discovered that most show me the exact same reactions to price action as the MACD & Stochastic I use...

IMO, short term trading is a numbers game - the longer I'm at it, the closer my win/loss percentage heads toward 50-60%, regardless of the methodologies I try to master. So the trick is to put myself in a position to take more out when I win than I give back when taking a loss.

I have a few other simple trading signals besides the MT SLING but they are all heavily dependent on my "feel" for the trade, developed over the years...I post my other methods on a free public blog but think it might be inappropriate to use this forum to promote it.
(it's more a trader's log for me than a reader participation forum but comments are welcomed) 

So if this is the correct place for them, I'll continue to post some ideas here from time to time.

sharpshorts

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The MAC Trend Slingshot pattern
The MT SLING  --  One of my most common price action trade patterns for taking LONG positions using a simple set of common indicators.
I use it to trade the e-min futures on a very short term basis but it also works with stocks and ETFs (or any market) and on any time frame you are comfortable with.

This pattern prints multiple times each day. It's frequency of occurrence is dependent on the time frame you choose to watch.
It allows you to take bit's and pieces of down-to-up reversals out of the markets with regularity.
 
It's a combination pattern - MACD EMA Signal (MT) and the Stochastic Slingshot (SLING)... 
MT for price direction (trend) and STO for the 'trigger" (entry)

Examples below show the 'typical' pattern on 40 ticks-per-bar and 35 ticks-per-bar charts of the YM.
(less than an hour of market activity is shown on each chart)
A TRIX histo is in with price over MACD EMAs with MACD histo and Stockastic %D in the study.
MT SLING.jpg An example on a 30 minute-per-bar chart showing two sessions of activity...
The MACD EMAs with MACD histo and Stockastic %D in the study pane.
Trend is friend (1).jpg 
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