TradersLog Ed Seykota is a commodities and futures trader, trading educator and trading systems developer. Seykota holds degrees in Electrical Engineering and Industrial Management from MIT. In 1970 he pioneered systems trading using early punch card computers to test his trading strategies. His entry into the world of trading systems had in part been inspired by
Famous commodities trader Richard Dennis was having an ongoing debate with his friend and business partner Bill Eckhardt about whether great traders are born or made – whether it is possible to teach the ability to trade successfully. While Dennis firmly believed that trading abilities could be broken down into a quantifiable system of rules
The bullish Three Inside Up reversal pattern occurs during a downtrend. The first two candle are a Bullish Harami, a two day pattern that has a small body day completely contained within vertical range of the previous larger candle’s body. This formation suggest that the previous trend is coming to an end. The smaller the
Three Inside down is a three candlestick bearish reversal pattern. The formation occurs in an uptrend, with the first two candlesticks being the bearish Harami pattern. This is followed by a black candlestick that closes lower than the first candlestick in the series.
Ed Meihaus is Chief Investment Officer of boutique investment firm Hanseatic Group. Meihaus joined the firm in 1985 and develops quantitative model-based investment applications. See also: www.hanseaticgroup.com