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Those of you wanting to look deeper into Drummond Geometry
can track down Pat Shaughnessy in Scottsdale to obtain
cheap tapes and a chartbook which he used to sell.
Shaughnessy walks through a year of trading the daily charts
with setups and rules. The chartbook has all the patterns
used in the method from which you could very easily check
out the details. I think Shaughnessy's easy going commentary
should give you a good idea on how to apply the techniques.
As I recall, I paid a only a few hundered bucks for all of it.
I have no connection with Shaughnessy whatsoever. But hey, I'm
black shanty Irish...so (in the distant past) you just never know.
Try: patrickshaughnessy.com
For Drummond info try: pldot.com
In a nutshell, the method uses the last two bars to project
likely support and resistance levels for the next bar. For
example, a line drawn from High[2] through Low[1] projects
a point into the NOW bar for a likely point of support. The
various setups have funny names like 5/9, 6/6 and 5/3 corner
line; named after chapter headings in Drummond's first book.
There are about a dozen or so setups.
I was not able to use the ideas because the notion of making
a trading decision based on two old chart points is, for me,
like stepping in front of a train. I see it as Geometry
Without Reason. Nevertheless, combined with other 'stuff',
Drummond support and resistance has merit in congestion areas
and on tick bar charts. Otherwise, I would have to agree that
Mark is right....voodoo.
Steve Gibson...
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