great trade setups, page-6

by50

Thanks ... the mounty is awesome.

I took the same short today as I suspected that the Chinese PMI might have something to do with yesterdays sell off. Turns out the PMI is good but the
short worked anyway.

I totally agree with out that the price and hence charts are the only true public information that there is. Also a lot of trading these days is done by algorithms. Not just arbitrage but just outright position trading. The only information these systems have is a price feed .... so the algorithm must base its decision on price. Since some of these systems trade rather large .... well, you can obviously see them in the market. Also, building such a black box is not that easy ... so the algorithms are kept as simple as possible. The big challenge is to find them in all the market noise .... so you can front run them ;-) Well .. at least that's my approach.

To anybody interested in essentially such an approach I could highly recommend Frank Dilernia's work.