9/2/2021 Ed Seykota On What Drives Prices and Donchian's Trade Guide | PDF | Technical Analysis | Financial Economics

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A societal “aha!” moment – drives prices. Read the newspapers and magazine
Related titlesmove. At first, noone gets why the move is happening. There’s a lot of confusio

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move’s way up, some people get it. At the end, everybody gets it. The tension
the move ends.

On Stops
Before I enter a trade, I set stops at a point at which the chart sours.
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Seykota used Richard Donchian’s (father of the turtles) trading system as a gui
How to Trade Like Ed Seykota’s First Principles of Ed Ed Seykota of Systems & Trading Jack Schwager -
Jesse Livermore Donchian’s self -proclaimed
Trading System… most important
Seykota (Trend… pointsFundamentals_…
Technical Tools were: Guide to Winnin…
1. Beware of acting immediately on widespread public opinion. Even if it
usually delay the move.
2. From a period of dullness and inactivity, watch for and prepare to follo
direction in which volume increases.
3. Limit losses and ride profits, irrespective of all other rules.
4. Light commitments are advisable when a market position is not certain
moves are signaled frequently enough to make life interesting, and con
these moves to the virtual exclusion of others will prevent unprofitable
5. Seldom take a position in the direction of an immediately preceding th
Wait for a one-day reversal.
6. A move followed by a sideways range often precedes another move of
extent in the same direction of the general move. Generally, when the
from the sideways range has run its course, a countermove approachin
range may be expected. (Figure 1) 
7. Watch for “crawling along” or repeated bumping of minor or major tre
prepare to see such trendlines broken. (Figure 2) 
8. Breaking of minor trendlines counter  to the major trend gives position-
Positions can be taken or reversed on stops at such places. (Figure 3) 
9. During a move, take or increase positions in the direction of the move
morning following any one-day reversal, however slight the reversal m
volume declines on the reversal.

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