A Database To Improve Your Technical Analysis

Reviewing my notes from Bounce I came across this passage:

This is so funny as I was in a meeting with my partner, Steve Spencer, the other day with us talking to one of our better traders. Steve suggested for this star trader to take a snapshot (capstone capture) of his charts after his best trades and create a personal data base of these plays. For those who do not know Dr. Ericsson is the world’s leading scholar on performance. Said another way if you want to get better at anything you want to read him (or just listen to Steve 🙂 ). So now we have the genius idea of creating a data base of our best trades and their accompanying charts, backed by the guy who knows. Ok excellent.

But what if we took this a step further. What if we created a trading community or desk where like-minded traders shared their best charting set ups, marked up the charts with spots to buy and sell, have the mark ups approved by a technical analysis guru like Adam Grimes of SMB Blog and created a central viewing center to pull such charts from? What impact would that have on the member’s ability to improve their technical analysis skills? You need reps to get better at spotting great charting set ups and this idea will give you that.

Mike Bellafiore
Author, One Good Trade

10 Comments on “A Database To Improve Your Technical Analysis”

  1. Yes, but what about the combination setups? How do you plot that 3rd, 4th or 5th dimensions?

  2. Great point! Looking at the charts that really worked, branding them in your head, will help you build the skill to trade the subsets of your trades. But you will have to build the skills to handle the nuances and subsets of your best charting patterns.

  3. This is a great idea. Perhaps traders could also add what they saw on the tape that prompted them to enter/exit.

  4. That is fantastic idea. I support it and would be glad to contribute to your community. Currently I do record video of my trading every day and would happy to send screen shots for the best setups with comments.

  5. This is the way I journal all my trades (using windows snipping tool and the a multi timeframe screen. Really good to see your thought process Vs Account statements and brokers like lightspeed plot your executions on the charts.

    Its a visual game at the end of the day.

  6. I know just how Dr. Ericsson feels. I tried to convince a 40 year veteran trader that he should show trading patterns to his paid subscribers so they could start to recognize and ingrain the pattern for their trading. I referred him to this blog. The seasoned trader disagreed. What seems so obvious to be a great idea is not obvious to everyone — why Dr. Ericsson’s great idea didn’t get adopted.

    If a library of patterns did exist, I’d want it to include failures too so you could develop a sense of nuances to a pattern.

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