Best Grounding for a Geometry Based Methodology?

[⭐ teeter]

I am a price action trader interested in broadening my tool set to include the use of geometrical analysis (particularly for setting targets).

 

I would be grateful for any recommendations of works/authors that cover the basics sufficiently clearly to overcome my existing limiting misconceptions such as : how can e.g. price = time when the time axis depends on say the scaling provided by any particular charting package?

 

I am prepared to put in the study but would be grateful for guidance on which path to follow.

 

Teeter

[tmalone]

While there are many price/time trading methods that do require a properly scaled chart in order to yield accurate results, there are many that do not. Each and every chart, irregardless of its scaling, has its own inherent geometry no matter how skewed the price axis may be from the time axis. Certain price/time projections made on such charts will still yield accurate results because the price/time distortions are uniformly distrubuted throughout the chart. So any angles or lines drawn upon such a chart will also conform to the distortions and work despite the imperfect price/time scaling.

 

The works of Larry Pesavento and Scott Carney are probably the simplest places to start in terms of finding geometrical methods of trading that do not require specific chart scaling while still yielding accurate and workable entry and exit targets. From there one can then move on to the works of guys like Michael Jenkins or Alexander Goulden who teach some more advanced geometrical tools that still do not require specific chart scaling. But if practical and workable exit targets are your main concern, I'd start with Pesavento and Carney. Good Luck!

[⭐ teeter]

Thank you very much for your recommendations and reasoning based on my requirements.

I shall certainly start looking in the directions suggested.

 

From a purely intellectual standpoint (and I appreciate this could distract me from my main objective) which author best goes into the detail of addressing the issue of proper scaling.

[tmalone]

From a purely intellectual standpoint (and I appreciate this could distract me from my main objective) which author best goes into the detail of addressing the issue of proper scaling.

 

Gann of course is the initial impulse behind much of this geometric price/time trading and he treats the subject of scaling extensively throughtout his writings. But I've never had an easy time digesting or understanding his style of writing. Jenkins is probably my favorite author/trader in terms of treating many Gann-based subjects in a thorough yet understandable way. He has written about proper scaling in many of his books and courses and shows many techniques that can be utilized from it.

 

But I would urge you to trust your instincts and NOT let this subject of scaling become a sticking point for you. The time and effort required for properly scaling a chart simply is NOT needed to achieve the main objective of trading which is profits. Very accurate price/time targets can be had while utilizing unscaled charts so why bother?

[⭐ teeter]

Message received loud and clear - many thanks for taking the time and effort to reply

[mlee]

I agree with Tmalone, Pesavento and Carney for geometrical methods. (Harmonics work very well imho)

You could also look at Bryce Gilm0re.

 

In terms of price/time, Car0lyn B0r0den uses Fibs extensively for this. I haven't looked into this though.

 

In the end, I believe simple is best.

[⭐ teeter]

Thanks for the confirmation.

 

By the way I recollect most of these authors as having done a lot of work with stocks, indeces and futures. Do these methods perform exactly the same on forex?

[tmalone]

Thanks for the confirmation.

 

By the way I recollect most of these authors as having done a lot of work with stocks, indeces and futures. Do these methods perform exactly the same on forex?

 

Yes they do! Any freely traded, liquid market will do the trick.

[maddman]

Teeter, Ross Beck has taken what Larry Pesavento and Scott Carney have done to a whole new level. Ross can be found at www.geometrictrading.com and offers courses in that arena. I am a student currently taking his course at the Apprentice Level. After 4 years of trading I realized that Geometrics rule the markets and nothing else, If you wish to do yourself a favor and save years of your life and tons of money, go there and look into it. Seek and ye will find. Otherwise you may end up chasing your tail like most people in life.

Respectfully,

Maddman

I am a price action trader interested in broadening my tool set to include the use of geometrical analysis (particularly for setting targets).

 

I would be grateful for any recommendations of works/authors that cover the basics sufficiently clearly to overcome my existing limiting misconceptions such as : how can e.g. price = time when the time axis depends on say the scaling provided by any particular charting package?

 

I am prepared to put in the study but would be grateful for guidance on which path to follow.

 

Teeter

[qbert]

Harmonics is an excellent trading method. I have used it and had good success with harmonics.