Sunday, July 13, 2008

The Anti - don't fear the ripper, be the ripper!

Here are add'l examples of Antis. Of course there are slight variations to this pattern as they occur throughout the trading day but I have pointed out some key elements. An Anti, like a divergence, often ends a swing. So to practice spotting an Anti, pick a timeframe and look at the top or bottom of swings on that timeframe and see which pattern may have ended that swing. The best Antis play-out when no one expects them!


Raj said...

Nice Charts!!!But i believe the Charts are not true examples of Antis for the following reasons.
13. Buy Anti: ...The Anti forms when the first upswing is greater than the previous downswing in a downtrend....
Chart #1: Upswing < Downswing. So what lead to that move up? 3 pushes down on the timeframe with Buy Divergences on the slow line. That kind of setup leads to a tag of the opposite Keltner which it did.
Chart #2: Samething. Downswing < Upswing. Again what lead to that move down? Notice the prior swing had an ABC kind of look it...So that was the completion of Wave 5 and the beginning of a Wave 1/A setup.
Chart #3: There is no flag not even one higher high in the price bars. That is not a bear flag until price pulled 3 bars to 1326-27 area.
Would love your comments....Thanks

TeamLBR said...

The Anti is primarily an oscillator based pattern.

"The Anti is one of the most reliable ways to use an oscillator for spotting and trading a choice swing setup. The trade may not always be apparent on the bar charts alone!...". ( Street Smarts pg. 69)

I can understand your confusion as the trade setup library on the LBR site adds the variable of swing measurement which is not included in the Street Smarts book. This can be subjective as evidenced by the chart examples given for the definitions - one chart shows a swing clearly larger than the prior and the other it is rather close. The horizontal line on my chart examples represent the pivots I would use. Sometimes the swing is clearly larger and other times not. (The pattern often requires quite a bit of "feel" on smaller timeframes.)

The "flag" referred to in the charts examples refers only to the appearance of one - a pause. Not neccessarily the same kind as in a retracement play.

"...the best (buy) antis look more like a flag in the middle of a trading range - that first higher low...". (conversation w/LBR 2006)

Sometimes the position of the fast and slow lines in the oscillators can vary as well. Another memember posted an example of a 60m SP anti that shows the position of the oscillators similar to the examples given on the site and book. I posted examples that show the oscillators positioned most similar to a pattern known as the "Stochastic Kiss" which the Anti was derived. I wanted to show this variation as those are ones I have found to be most powerful. (Though I have traded some with the look of the other example given.)

The best use of the Anti is in "anticipation" of a direction change on a lesser timeframe into a larger timeframe trend/swing. If used accordingly, it is easier not to get so hung-up on exact definitions but understand the components conceptually.

TeamLBR said...

In addition, the 3 pshs and buy divergence in the slow line you pointed out in chart #1 is part of what creates the "Anti".

"Two different timeframes or cycles moving in the same direction create a condition called 'positive feedback'. This creates soem powerful, explosive moves.". (Street Smarts pg 70)

Anti = "ripper"... :o )