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Those mystical levels - Open Range, Camarilla, Gann, Fibonacci, Octaves, Murray Maths. Do they work?
Yes, they do.. And Why? most of the time because, there are thousands of traders who believe in the sanctity of those levels and therefore, trade them like a self fulfilling prophecy. What is the real ball game? The answer is actually simple. Like any other trading method, level based trading approaches, offer a concept that is basically sound. Nearly all of them exploit the movement of the market around a golden mean: Think of a yoyo or trampoline. The harder you throw the ball or jump on the trampolene, the larger is the movement away from its on balance resting place. The markets work in exactly the same way. Finally, price returns to that golden mean and after some time creates a new wave of movement - repeating this cycle to eternity. Open range breakout works on breakouts from the golden mean. Camarilla exploits the deviations away from the golden mean - a reversal back or a breakout towards a new golden mean. Gann, takes the Camarilla concept to the next level - postulating constant multiple golden means cast in stone - around which price will oscillate, based on time movement. Fibonacci rules follow a more natural Newtonian law - what goes up comes down, and what goes down comes up. Murray maths and Octave based trading allow traders to trade from an extreme towards or away from the golden mean. Bollinger band trading allows traders to trade counter trend, when price moves more than 2 or 2.5 standard deviation width from the mean price movement. This thought is not about any of these methods, but about what is common amongst all of them. They present alternative methods for trading, which a trader can pick up and work with consistently, as they are following a natural movement which is unstoppable. A smart trader will learn to sync in with the rythm of these movements, a step, which we try to discover in our mentored trading offerings. However, most of this is common sensical knowledge, which a smart trader will learn to use : Buy when everyone is selling and Sell, when everyone is buying...... And dont trade when the market is trading around its golden mean. Isnt this simple....something that traders have spent centuries trying to do? And the answer is yes.............. THe example below is of a properly configured Octaves levels based trading system, which gives multiple long trades and a short trade. As it trades from Highs and Lows levels of the market, the failure level risk is consistently kept low. Just an idea sirji....!
5 Comments
Manoj
18/2/2014 11:55:12 pm
Sir, thanks for this beautiful real Gems …as per screen shot can you explain regarding levels 7, 10, 11 and 12. Are u short as per level 12 at present…Manoj
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Abnash
19/2/2014 03:07:38 am
This section is not for explaining the logic for trading this method. Please have a look at the Murrey Maths section on the website
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A true trader
30/3/2014 01:49:24 pm
From reading your website you give an impression that you know everything about trading...I like most of the knowledge articles you have put up in ur site...and admire the pain you have taken to do it.But,what i really dont like about you is your attitude to who ever has not taken you advisory or your mentoring service.If God has given you a skill of trading well,why dont you use it for making money from markets...rather than squeezing hard the pockets of those traders who are struggling to make money...You were not born into this world with all this skills..everything you have achieved is from "WWW".I strongly believe that if you are providing a service like advisory or mentoring you need to do it for free or for a small amount..This comment is straight from the heart..and yes,you may differ as always...thank you
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Abnash Singh
24/5/2014 09:39:25 am
Hi, Thanks for your comment. Its taken many years of effort to simplify trading to the algorithms that I now use, which are entirely price based and dont use any indicators. Along with this, is a set of risk management rules and practices. Nearly all of what I write is freely available in AFLs on the website. If you can use them effectively go ahead and reap the benefits. But to suggest that the business model that I use is asking too much. This is a for profit business without doubt. There is time and effort that is spent in providing all of these services.
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AuthorAbnash Singh, Am a Trader helping small traders to realize their dreams. Archives
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