FOREX PRO Weekly December 26-30, 2011

[Q-Rick]

Sive, .. Regarding the referenced StopGrabber, I do not understand the rationale of this being a reliable SG as compared to the obvious SG that exist when the trading action is taking out a significant "swing high or swing low", that is observable for ALL TRADERS to see.

The reason I don't understand the rationale in this instance, is because this trading action has simply traded below the Joe DiNapoli Trend Indicator that most of the world does not have available to them and thus can't see (so only a few actually see it). With that in mind, I don't see how it realistically, "traps" any sizable trades. Thank you in advance for everything and for your response to this......Q

 

[Sive Morten]

Sive, .. Regarding the referenced StopGrabber, I do not understand the rationale of this being a reliable SG as compared to the obvious SG that exist when the trading action is taking out a significant "swing high or swing low", that is observable for ALL TRADERS to see.

The reason I don't understand the rationale in this instance, is because this trading action has simply traded below the Joe DiNapoli Trend Indicator that most of the world does not have available to them and thus can't see (so only a few actually see it). With that in mind, I don't see how it realistically, "traps" any sizable trades. Thank you in advance for everything and for your response to this......Q

Hi Rick,
Although your thoughts are reasonable (may be), the same we can say about any other technical tool, right? Some traders use very sophisticated and advanced analysis with fractals and so on. The fact that others do not see it and do not understand does not cancel its efficiency. Otherwise, we might say, just for example - I do not use Elliot waves, then it means that they do not work and do not impact me.
Or, even in a scale of World - if we do not understand some physical process - does it mean that it not exist and do not impact us?

THe second explanation could be as follows. For example there is some process on the market, that could be cought by different ways. But process is the same. DiNapoli has found that it can catch this moment by something that he called as Stop grabber. OTher trader may be will understand the same behavior by some MA or, say Stochastic or some pattern. But the foundation and core is the same - it just could explained by different technical tools.