Bad Charting, or Just a Bad Trader?

Investing Strategies Technical Trader's Sanctuary
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Someone in another thread wrote the following: “I had setups on Arm, Cybr, NU, WDC, Spot and HQY today. All at or near proper buy points and they all failed.” [emphasis mine] Here’s ARM as of Friday’s close and what Quill would have said. "Sell Monday per Rule Two. I’d have said the same. "Sell at the open Monday to lock in the profits from having gotten in on May 22. "

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Here’s CYBR and what Quill would have said. “CONTINUE TO HOLD after having gotten in on Jun 6.” I’d say the same.

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Here’s NU and what Quill would have said. “CONTINUE TO HOLD”. I’d have said, "if you were dumb enough to have gotten into this mess of a sideways, choppy stock, then EXPECT A RETRACEMENT Monday based on Friday’s candle and get out at Monday’s open. "

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Here’s WDC as of Friday’s close and what Quill would have said. “You were given a clear-cut, Rule Two SELL signal on Thursday. Why the heck are you still holding this stock on Friday, much less doing anything as stupid as thinking about buying it Monday?” I’d have said, “If I had gotten into it on 6/12 on a MA X-over on 6/11, I’d have been out of it 6/17 on the doji on 6/14.”

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Here’s SPOT as of Friday’s close and what Quill would have said. "I’d be on the sidelines for having gotten in and out earlier in the chart per my rules. I’d have said, “Had I gotten in on 6/21 on the MA X-over on 6/20, I’d be holding a profit today. But SPOT is exactly the kind of stock I avoid trading.”

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Here’s HQY as of Friday’s close and what Quill would have said. “What about Rule Two do you not understand? You got in on 5/31 on Rule One and got kicked out on 6/13 on Rule Two. Next chart, please.” I’d say the same.

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My purpose in grinding through these six charts is to show that the lack of sound, evidence-based, clear-cut rules --and the discipline to follow them-- creates decision chaos. In short, Quill’s motto about the “Six P’s”.

Lastly and again, Simon Sez isn’t the only way to trade stocks. But before anyone goes chasing after other methods to pull money out of markets, much less pays anyone to tell them how to do it at some ridicuous amount like $1,500/yr, they should look at what Quill offers for free to anyone who’s willing to read and to think about what he says.

Charlie

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That is like saying someone had the wrong time because they were in a different timezone from you. This person does have a set of rules that are sound and proven in the CANSLIM/IBD method, so your statement disingenuous. Furthermore, he said they were NEAR proper (IBD) buy points but they failed the breakout and they were not purchased. Therefore the rules worked and kept him out of those stocks.

So, please clear this up, are we supposed to use the HA smoothed charts (BarCharts) for Simon Sez 3 or are we supposed to use the OHLC charts from StockCharts. Or do the rules work on both even though both give different buy and sell points? I can’t follow rules if I don’t know which specialized chart to use.

Thanks

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Pete,

If you and your buddy want to trade the IBD method, do so. If you want to trade Quill’s method, do so. Either way, it don’t make me no never mind.

I pointed out (yet another) six instances of his very bad chart reading, and I stand by my comments, just as I’ll stand by my comments on other trades he’s done, such as his losing trade on ENPH.

Trying to excuse bad charting by claiming was done according to IBD methods is lame. Bill is a better chartist than that, as anyone can discover for themselves by actually reading his books rather than thinking they have understood what he said and trying to apply their misunderstandings in a mechanical fashion.

Lame. Lame Lame.

Charlie

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Pete, Arindam knows he is being an idiot, he is just trying to troll. But I enjoy it because it shows I have taken up rent in his head for free.

As far as your questions go about using Quill’s methods, you really need to ask Quill because he is the expert. He is the one making the money. I suspect it is hard to get ahold of him because he is very busy but when you get him to answer you ask him everything you can, otherwise you are not going to get a proper answer.

As far as Arindam goes he is only good for basic questions and once you get those from him he starts going from a teacher to troll, which is very weird for someone who claimed to be a Professor. When I asked him whether he thought we were in a bear market or a bull market and he told me that we have been in a bear market since 2008, well that is all I needed to know. Anyone who can not read the market trend can’t really trade the market.

He did help me get Barchart set up and he also gave me some great books to read. So I will always be thankful for that.

Andy

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Bar chart rules:

Charts shown by Charlie are perfect examples.

For green horns, rookies and beginners, it is suggested for training purposes, is to use the one month chart the same two rules for Stockcharts as well as Barchart.

Barchart buying / selling rules:

Bottom: BUY the first GREEN bar after the Low or Smiley face is shown. If it is RED, wait and wait for the GREEN bar.

Top : SELL the first RED bar after the Frown face (high). IF GREEN (caution) it might turn and head north, and wait and wait for a RED bar to sell.

Any MA’s are only hidden references for directions

There should be only TWO (2) faces being viewed. Drag the chart to the left until there is only 2 faces being shown. Practice, practice at your leisure to where it becomes routine informed decisions within 300 nano nano seconds (blink of an eye).

Settleing the confusion:

For StockCharts, Price labels or Out of the Gate (bottom) or Finish Line (top) is the same as as the Smiley (bottom) and Frown (top) faces. Same rules apply.

Just becareful, your waring two different hats.

I really really hope this can help the different charts being view.

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Just another thought:

I wrote the barchart rules on an index card with red green and blue letters

I also wrote on another index card for Stock charts rules.

these are for my grandson as well as a marked up coloured chart for each.
we have a 1/2 inch binder with charts and an excel spreadsheet for progress as to how many shares he owns and prices etc etc.

Ijust don’t know how to create a spreadsheet image to show on the board.

I am sure you have your own style of spreadsheets progress reports.
I flip though about 24 sheets daily, plus my wifes portfolio from Ellevest.com

Quill -

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Quill, thanks. I interpret this as "you can use SS3 on either HA smoothies or Stockchart OHLC (or candlesticks), but that the two are not used together as confirmation of each other. That is, you are fine using one set of charts or the other.

Thanks.

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