StockFetcher Forums · General Discussion · what indicators do you find the most powerfull?<< 1 2 3 4 5 >>Post Follow-up
miketranz
668 posts
msg #60628
Ignore miketranz
3/18/2008 11:40:36 PM

The simplest and most accurate indicator of market direction is price......

EWZuber
1,373 posts
msg #60638
Ignore EWZuber
3/19/2008 12:24:12 PM

Its not as complicated as it seems, IMO.
There is a consolidation pattern at the top and bottom of every cycle.
The remainer of the cycle is the trend.
The consolidation pattern will begin on the short term intraday time frames and later move to Hourly & Daily time frames (and occaisionally longer time frames) as it matures.
The trend does the same, beginning on intraday time frames and moves to longer time frames as it matures.
Same indicators, same system for determining support/resistance all the time.

EWZuber
1,373 posts
msg #60640
Ignore EWZuber
3/19/2008 12:27:35 PM

Right now the QQQQ is in the process of violating the 5m/50MA at 43.25 as support.
Next support is the 10HR.MA at 43.
A daytrader can use this set up to make 23C on the short side pretty easily.

EWZuber
1,373 posts
msg #60642
Ignore EWZuber
modified
3/19/2008 12:47:56 PM

And cover at 43.
Same thing can be done using longer term time frames like Daily, Weekly and Monthly.
The signals are always the same.

nikoschopen
2,824 posts
msg #60645
Ignore nikoschopen
3/19/2008 1:01:43 PM

Zub, why dontcha post a chart or two to help ure fellow traders?

nikoschopen
2,824 posts
msg #60648
Ignore nikoschopen
3/19/2008 1:10:58 PM

BTW, I have no qualms about using moving averages, especially SMA(50) and SMA(200) that I use extensively. However, other "squigglie" like RSI and Stochastics have been moved to the backburner over the years. As a matter of fact, I hardly ever use them now. All in all, you can't deny the fact that these indicators are derived from prices and in turn lag the price action. By the time prices retrace up to or down to a moving average, or that the stochastics emerge out of the overbought or oversold zone, much of the movement will likely have already transpired, leaving you with less profit potential.

EWZuber
1,373 posts
msg #60651
Ignore EWZuber
3/19/2008 1:14:37 PM

Sure, but because it takes a while to prepare I'll wait till the close.

EWZuber
1,373 posts
msg #60652
Ignore EWZuber
3/19/2008 1:15:52 PM

Its all in the time frame you use. If you want to get a jump on a trend use a shorter time frame for entry.

nikoschopen
2,824 posts
msg #60656
Ignore nikoschopen
3/19/2008 1:32:20 PM

Its all in the time frame you use. If you want to get a jump on a trend use a shorter time frame for entry.

Sorry, but I beg to differ on this point. There are two important points that you neglect to look at. Unless ure a 1-minute trader, you'll most likely have missed the move on a larger time frame. Even if ure a 1-minute trader, as I stated above, following the indicator alone will always be lagging due to its very nature of being derived from prices.

Second, you should never trade sporadically using charts of various time parameters. I'm a 5-minute chart trader. While I would frequently glance at 15-, 30- and hourly charts to get a feel for the longer term, I hardly ever zoom down to charts lower than 5-minutes in duration. Moreover, if I entered a trade using the 5-minute chart, I do not EVER use anything other than the 5-minute to exit. With the exception of newbies, which I'm not implying in ure case, I think this rule is pretty much a industry standard adhered by most traders.

nikoschopen
2,824 posts
msg #60660
Ignore nikoschopen
3/19/2008 1:49:17 PM

Here's one strategy that I use in lieu of "squigglies"



StockFetcher Forums · General Discussion · what indicators do you find the most powerfull?<< 1 2 3 4 5 >>Post Follow-up

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