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Pit Stops:
Charts and Indicators |
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What is trading Chicago style? For one thing it is an open mind. The following post on the net from a Chicago trader strikes a familiar chord. |
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I was educated at the University of Chicago. I began in the physics and math department and ended up a graduate student in economics. I've heard all of these arguments before. In the mathematics department, the statistics classes, and the economics department, we again and again were taught that the market is random and that indicators and "drawing techniques" (chart formations, trendlines, etc.) are not market predictors and therefore are useless. |
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I have news for all of the instructors who made these claims, and I'll relay it to you now. Just because you argue that they don't work does not mean they do not work. In my personal experience, they work. My work uses the oldest method of validation: my bank account. I've been a professional trader for years now. I use trading tools that you might classify as useless. |
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Very early in my trading career, a friend took me a few blocks down Wells Street in Chicago to meet a fellow who had a one room cubbyhole office. This fellow had a tiny quote screen (an old Marketview) and a huge drafting board where he was busily drawing away. This man was a slave to his own methodology (to this day, I have never seen anyone else use or apply these methods). He was a very nice fellow, very quiet, and when the market slowed a bit, he asked me what I used to "figure" my trades. I told him briefly, and then he began to tell me what he used. |
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He was updating an IMM Swiss franc chart, and he had kept handdrawn charts of the Swiss hourly charts for a few years (remember, the IMM currencies hadn't been trading that long back then). He told me that he was expecting a major buy in the Swiss franc that day and then |
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