Comments on: Dummy Trading Using Daily Charts: Metalico (MEA)

by: reno

Wed, 25 Apr 2007 13:31:16 +0000

Thanks for the answers and response Babak! I will indeed also go through Maoxian’s stuff about dummy trading.

by: Babak

Wed, 25 Apr 2007 03:08:10 +0000

reno,
the first two are correct ‘dummy spots’ but the third is actually 3/5 at the break of $37.91 high . This one probably threw you because it wasn’t an inside candle or a contraction but rather a pullback.

check with Maoxian to get a better grasp of dummy trading. It is quite simple and you’re 90% there But keep in mind that this is just a setup and there are still many, many other elements to becoming a successful trader.

Cheers

by: reno

Wed, 25 Apr 2007 01:34:50 +0000

I did the MFW assignment and came up with the following for when to trade these dummy setups. Let me know if they’re right. Thanks!

narrow range inside candles aka dummy trade

1/1 - buy when it clears 26.25
1/22 - buy when it clears 31.73
3/12 - buy when it clears 39.31

I love that the dummy trade can be applied to a short term trading. I can’t daytrade since I have a day job and this can certainly help me with my swing-trading entries. Thanks again!

by: Babak

Wed, 25 Apr 2007 01:28:17 +0000

thanks Reno, if you want to learn about dummy trading, there's only one source: Maoxian

by: reno

Wed, 25 Apr 2007 01:24:44 +0000

Great post! I like the explanation of the dummy trade — I keep on seeing that term in all the blogs and had been trying to figure out what pattern to look for and what that meant.