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Patterns

All posts related to Patterns & Toby Crabel & Larry Williams

Toby Crabel is a contemporary United States self-made billionaire commodities trader. The Financial Times called him "the most well-known trader on the counter-trend side".

He is the fund manager of Crabel Capital Management, ranking in 2005 number 101 out of 196 funds on Absolute Return's survey of U.S. groups with more than $1 billion AUM. Crabel manages 3.2 billion dollars with a staff of some 80 people, and has been a producer of consistent returns whatever the weather since 1991.

The Principle of Contraction/Expansion.

In 1990 he wrote the book 'Day Trading With Short Term Price Patterns and Opening Range Breakout', which was sold out immediately, and now can be found on eBay for up to $4,000 a copy. Rumor goes, Crabel had not pursued additional printings of the text, believing that it gave away too many of his valuable trading ideas.

Toby Crabel Price Patterns.

However, one of its great strengths is that it is an attempt to statistically test the efficacy of price patterns. Instead of merely asserting that a chart formation is bullish or bearish, Crabel actively searched for evidence. Crabel began with very simple notions of range and then investigating increasingly complex patterns over individual and multiple days, of 2 bars, 3 bars, etc. Today Toby Crabel is best known for his treatment of ORB and narrow range (NR4, NR7) patterns.

In 1973, Larry Williams wrote "How I Made a Million Dollars Trading Commodities", the all-time best-selling book on commodity trading. In 1987, he won the World Cup Championship of Futures Trading, hosted by Robbins Trading Company, where he turned $10,000 into over $1,100,000—a return of 11,376%—during a 12-month competition using real money and real trades.

Andrea Unger - How to Trade the Larry Williams Oops! Pattern. (video)

This is a record no one has come close to since. Ten years later, his daughter, actress Michelle Williams, won the same contest. He ran twice for the United States Senate in his home state of Montana, narrowly losing both times. He currently lives in the United States Virgin Islands, where he trades, teaches, writes, and conducts market research.

My “New Reversal Day” Discovery.

Williams has created several market indicators, including Williams %R, the Ultimate Oscillator, value measurements for commodity prices, the COT index, accumulation indicators, and a setup for volatility breakouts. His website is www.Ireallytrade.com. He has developed a number of trading strategies based on patterns—for example, Oops! is one of the more popular ones.