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Anyone using DiNapoli methods?

Discussion in 'Forex Trading Systems and Strategies' started by Synchronicity, Oct 12, 2011.

  1. Synchronicity

    Synchronicity Sergeant

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    Hi

    Sive's most excellent posts started me looking at Joe DiNapolis methods and I managed to borrow a copy of his book to read. Having played a bit I am quite interested and am spending some time trying things out.

    Does anyone here use his methods or have any experience in the past?

    Also, if anyone has a copy of the book for sale at a reasonable price I'd be interested. No e-books please, I'm after the real thing.

    All the best

    Michael
     
  2. WaveRider

    WaveRider Sergeant

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    I do

    I have his ebook. I printed the whole thing with two pages per page to save paper and read it cover to cover twice. This is why I think it works:

    You can't change the market and neither can I. Even a federal reserve bank would have a tough time really moving any major pair for very long. Every trader is looking at a different chart and different time frame. You're looking at the 382 retracement on the 15 min and I'm looking at the 618 retracement on the hourly. They are only about 20 pips from each other. The weekly pivot happens to be about there too and the daily fib resistance 1 so another guy is just a pivot trader looking for a bounce. All of us are making decisions at this point. A 382 retracment by itself doesn't psychologically have enough weight to change the entire market direction. But 3 or so decision points in the same spot do because as you add decision points to a certain spot, you draw more and more traders into the market at that area. They are all making trades about there, for different reasons. DiNapoli calls it confluence support. Or K1 or K2 depending on where it is. So in theory, if there is an indication the market will rise, wait for a drop to a strong K area, buy with a SL hidden under the strong K area just below and take profit at 618, 100, or 1.618 extension level.

    The way Joe describes trading in his book will not work perfectly with forex because he did not consider the 50% or 23% lines to be relevant but I think they are and he didn't talk about fib butterflies or pivot points, which may not have been in use too much when he wrote his book. I think it's good to read the book, get his principles in mind, see how Sive applies them and get a feel for how to apply them yourself. Any greater combination of S/R in a small area is a good spot for a turn around. What everyone is viewing as S/R tends to change. I've tinkered with using his MA's in an EA, even having a custom EA written but it doesn't seem to work, at least not how I applied it. Good luck.
     
  3. Synchronicity

    Synchronicity Sergeant

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    Thanks WaveRider

    I think that is a great explanation of how we can use tools to 'see' the psychology of the market and react accordingly.

    I have grown very cynical about EAs. I write my own and use them as tools, eg open a trade if a candle closes across a specific trend line - but I decide where the trend line should be. I don't use them as decision makers, its just too hard to program in all possible variables.

    All the best

    Michael
     
  4. D.R.&Quinch

    D.R.&Quinch Sergeant

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    hey wave hope all is good.
    i am battling thru this book too. can u help me with page 55 (macd and stochastic combo for fading move). I just dont get it! any chance of you explaining it differently?
    specifically, page 66, this point in reference to figure 5-8
    You
    would not have gotten into trouble by selling point Tl, or by buying points T2 or T3.
    as far as i can see, one would have got into massive **** selling at those points!
    all the best
    quinch
     
  5. WaveRider

    WaveRider Sergeant

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    Hi DR. Great to hear from you. Dinapoli is a trader, not a writer. There were a couple spots in the book that I had to sit on for while to get what he is saying. What he is saying is if you had followed his method, you would not have sold T1 or bought T2,3 and therefore would not have gotten into trouble. For more on this and how it relates to Sive, follow this link. Dinapoli has a section talking about trend verse direction and says "direction over rules trend." It took me months to understand that because he didn't explain it very well. Sive helped me get it and it is in this write up below.
    http://www.forexpeacearmy.com/forex...break-down-sive-mortens-trading-strategy.html
     
  6. WaveRider

    WaveRider Sergeant

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    Also, I don't use indicators so I didn't bother to understand how to use those that he describes. I figure if I ever decide to use an indicator it will be one that I wrote or had someone write for me because it will tell me something I need to know faster. BTW, you can get his dinapoli MACD with the decimals by doing a google search. Took me a minute to find. The slow stochastic, I believe is the stock version built into MT4. Good luck.
     
  7. D.R.&Quinch

    D.R.&Quinch Sergeant

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    you the man. yes i was having problems with those decimal inputs for MACD, you must be clairvoyant!
     
  8. molatedi

    molatedi Recruit

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    hi
    I would like to get a copy of Joe Dinapoli's book, any advice where i can a good copy, i am in South Africa
     

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