StockFetcher Forums · General Discussion · what indicators do you find the most powerfull?<< 1 2 3 4 5 >>Post Follow-up
nikoschopen
2,824 posts
msg #60662
Ignore nikoschopen
3/19/2008 2:00:15 PM

Here's the latest development. As you can see the "measured move" played out as expected.


EWZuber
1,373 posts
msg #60667
Ignore EWZuber
3/19/2008 2:34:54 PM

nikoschopen
I have never advocated sporadic use of various time frames, only the disciplined use of various time frames.

vic1
21 posts
msg #60675
Ignore vic1
3/19/2008 5:31:33 PM

Rtucker,
"The way of the Turtle" , Curtis Faith and "Trend Trading", Michael Corvel are my source of info.
Anyone else have trend trading books to reccomend?

Although it doesn't read as easy as Covel's TREND FOLLOWING, The book by John J Murphy TECHNICAL ANALYSIS of the FINANCIAL MARKETS will be of interest.

Vic

rtucker
318 posts
msg #60678
Ignore rtucker
3/19/2008 5:54:37 PM

Thank you Vic.

rtucker
318 posts
msg #60679
Ignore rtucker
3/19/2008 6:53:28 PM

"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."

With all due respect Niko , and tossing the book aside, I believe almost
everyone will violate these rules. Some may have a "swing trading"
account and use daily bars to enter , yet hold overnight. You cant come back the next day with the same daily bars/indicators on that position held overnight and call that staying in the same timeframe to exit.
Many swing taders using EOD data , that have a few hours or a full day at the computer will use a daily entry rather than using overnight orders and then place a stop based on support/resistance that occurred in a different, yet close, timeframe.
Now I aint saying its right, but I am saying it is common. As usual, Regards.

nikoschopen
2,824 posts
msg #60684
Ignore nikoschopen
3/19/2008 8:43:14 PM

rtucker,

Although I was thinking more in terms of intraday charts in the scope of 5- and 1-minute charts, ure point is valid with perhaps one caveat: the underlying logic seems to be flawed in my opinion. However, let me just point out that if the swing trader has "a few hours or a full day at the computer", I'm sure he or she would be looking at more than just the daily chart to base his decision.

Be that as it may, it's worth noting that while daily support and resistance lines will always show up in the intraday charts, intraday support and resistance lines will not show up on the daily chart unless they coincide with the daily high or the daily low. However that may be, the daily support and resistance will always carry more weight than their intraday counterparts.

Even though there's nothing wrong technically to jump from one ship to another in midstream, using the daily chart to enter a trade only to use the intraday chart to bail out somehow undermines the original intention why you made the entry in the first place. For instance, many traders would zoom into intraday charts to fine-tune their entry once they get a signal on the daily chart. But keep in mind that the main signal came from the daily chart. Likewise, the selling decision should not deviate from the same reason as the entry.

msummer2007
129 posts
msg #60686
Ignore msummer2007
3/19/2008 9:13:15 PM

I do agree with Niko, all indicators are lagging and are indeed based upon the price. If you are writing systems based on the indicators to give you a signal, that would be the same as putting the cart before the horse. Just look at Mary's posts. Always touting the rsi(2) and such. You would have gotten killed in this market. Instead I favor Tro's sentiments, price is everything. Having learned my lesson the hard way, I have limited my universe of stocks to 10 candidates. Knowing these stocks intimately, and only entering a trade if my price criteria is met, otherwise I sit on the sidelines. I do not day trade, never had great success with it.

deejal
45 posts
msg #60687
Ignore deejal
3/20/2008 12:10:58 AM

I use WM%R the most and Full Stochs and EMA8 (weekly)

nikoschopen
2,824 posts
msg #60691
Ignore nikoschopen
3/20/2008 12:51:29 PM

Thanks, msummer. I can now finally rest my case! ;^)

On a more serious note, I want to also add that prices don't fluctuate in vacuum. They go from one point to another. If you carefully look through the charts, you would notice that prices move from support to resistance, however small the range might be, and vice versa. By jumping in at these critical points in anticipation of a reversal or continuation depending on the strength of the move, the reward far outweighs the risk and that is what will ultimately make you successful over time.

EWZuber
1,373 posts
msg #60696
Ignore EWZuber
3/20/2008 3:40:41 PM

Nothing wrong with using multiple time frames and nothing wrong with entering in one time frame and exiting with another. The key is to do it with discipline and intent.
For instance, lets say that I want to enter a position and my TA indicates that this has the potential to be a long term position. Consequently I want to try and hold on to a position rather than grab a ST profit and exit.
I may enter on the 5 minute chart to minimize my exposure to downside and at the same time pin point the best entry point. A win-win strategy.
Lets say that pattern support is not violated on the 5 minuite chart for several hours.
After two hours I can switch to the Hourly Chart for my sell signal.
Lets say that pattern support holds up in this time frame as well for several days. I can switch to Daily Chart indicators after pattern support has been established in this time frame and use a violation of that pattern support as a sell signal.
The idea here is not to get all that can be gained in a short term but to maintain the position with a minimum of maintanance trades and realize longer term gains.
Investors can use this system as well, extending the time frame to Weekly Chart or longer if desired.
This system is far superior to buy and hope as it involves a trading discipline.

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

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