Dan tips up on pancake day: STA monthly meeting 13th Feb 2018
Industry veteran Daniel Gramza’s address at our new address, the Walkie Talkie building at 20 Fenchurch Street, London EC2M 7QH, was eagerly anticipated. He reminded us that once before he had travelled to Britain from his native Chicago to address an audience of technical analysts: in 1990 for Cambridge Research – which does feel like a very long time ago.
The fact he started out trading in the futures and options pits was self evident as he regaled us with hand signals and shared reminiscences of his early days. Again, it all feels a very long time ago – something I was reminded of today when, in conversation, I made the old-fashioned hand signal for a telephone call (thumb and index finger extended across my ear). More importantly he said, ‘the floor influences how I think about markets’ and that ‘on the floor you hear it by sound’, and charts are a picture of that.
He then went into a detailed description of candles, their interpretation, and the psychology behind them. While perhaps a bit too basic for STA members, the way he explained these did seem to resonate with some of the audience and a few are points worth reiterating. For example: ‘the body of the candle represents market acceptance, while shadows are its rejection’. I also liked the idea that after a significant candle, the next 2 to 5 periods are crucial. Trouble is, this might create too much ‘wait and see’. Paradoxically he claims to like long-dated options, yet feels that this trade must be profitable within 3 days.
The charts he used were rather dark and lacked definition, supplied by the spread-betting arm Fineco of Italy’s UniCredit bank. He has obviously worked with them before (three of their staff were prominent at our meeting), and has plans for another few talks in the UK; he offered VIP passes to the audience for The London FOREX Show in 10 days’ time – which STA members can already get as a perk! (Call the STA office on 020 7125 0038 for more details).
Poor thing, having struggled a bit standing in front of the screen projector – so the charts ran across his nose – he then talked at the screen, thus blocking the audience’s sight line of the section he was talking about. After that his mobile phone rang in his pocket. He had the grace and wit to say: ‘I think that might be a margin call’.
Tags: candles, Sentiment, timing
The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA. The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. None of the information on the STA’s blog constitutes investment advice.
- The STA’s 55th Birthday Party: Drinks, canapés and a good crowd September 18, 2023
- ‘Elliott Wave Outlook on Global Equity Markets’: The GPS of the markets works on fractals September 13, 2023
- International Technical Analysts Day: Remember, remember the 9th of September September 4, 2023
- The generation game: Fault lines and advantages August 24, 2023
- Elastic bands, bonds and rebounds: How to spot reversals – in charts and thinking August 15, 2023
- A fireside chat with author Jack D Schwager: He of Market Wizards fame on
- Market Wizards – and their lesser known cohorts: Jack Schwager hits the book launch circuit on
- Colours, clashes and clichés: How and why use colourful charts on
- Do you know Aroon? I do, but not very well on
- Must read classics: Richard W Schabacker – the real bible of technical analysis on