Using Landry’s Swing Trading Techniques To Trigger Entries Into Fib Setups
***This article is going to be short
and sweet, as I have also been deeply affected by recent events in NYC. Although
I have not lost anyone close to me, my beginnings were on Wall Street many years
ago, and I did work in the World Trade Center. I still have many friends and
relatives in that area. I hope that one day we can all feel safe and whole
again, though I’m not sure if this will ever truly be accomplished.***
I like Dave Landry. “Cajunman”
is a fun guy to hang out with, and I love that he is a “trend
following moron”! I still know too many traders
that try to swim upstream like the salmon. Going with the flow still seems to
yield much better results in LIFE and trading!
Dave finally sent me my copy of his book on swing trading, and
what I really wanted to see was if I could combine my work with his. It is
generally easy for me to come up with a key price cluster decision in a
particular market. What becomes the difficult decision for most traders is how
they ENTER against these key zones,
especially if it is a rather wide one, as in the case below. Dave’s work
provides some excellent methods to enter a price cluster in the direction of
the main trend!!
I sent Dave the chart below, and he marked it up and sent it
back to me. This cluster setup apparently fit his criteria for an entry in the
direction of the trend in September S&P
(
SPU1 |
Quote |
Chart |
News |
PowerRating). From what I
understand, the “trigger” to enter
the short side against this cluster via his methodology came with a violation of
the prior swing low at the 1179.50 level.
Since this level was taken out, we’ve seen an initial decline to the 1125.50
level, and then to 1066.00.
Here is another example which I believe would fit the “criteria”
for a Landry swing trigger. In this case, we are looking at the
Nasdaq cash index
(
NDX.X |
Quote |
Chart |
News |
PowerRating). In late June as the general public
started getting hopeful with a rally seen
from the June 20 low, this market faced some
important resistance between the 1845-62
area with the confluence of three key Fibonacci price
relationships. Since the Nasdaq was in a pattern of lower lows and
lower highs at that time, however, we had to consider that we might see a
downside failure. Note that the high in this case was made just ticks above this
key zone at 1865. This high was then
followed by a violation of a prior key low at 1795. This
was the “trigger” seen before we
saw an initial decline to 1600, followed by
an eventual decline to 1340 so far!!
Bottom line, I have found that my Fibonacci
time and price work can be effectively combined with many
other methods, as far as entries against these time and price zones are
concerned. This happens every day in my chat room, as many of my subscribers
have been willing to share their thoughts and methods for entry.
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