A method or indicator you have discarded!
- Thread starter inandlong
- Start date
I basically scalp/intraday trend trade stocks but moved my timeframe out from 1 and 3 min to 2,5, and 15 to get a larger perspective on support and resistance. I figured I could read the tape and use relative strength (not the indicator) to pick my entry spots so I did not really need the shorter time frame charts. If anything the shorter time frames just showed too much noise for me. I also dumped the stochastics because it seemed to lag the moves when trading in a range. I could usually pick up on the move and turning point before the stochastics could. So it became more of a distraction for me. It also caused me to question and lose confidence in some of my trades that were good but just gave conflicting signals compared to the stochastics.
The Paul of TA, very funny I like that 
Just to add my journey, when I first started I think I used most of the indicators out there, watch CNBC (24/7, even the animal shows, read nearly all if not all the trading books I could find. Searched the internet concerning anything with daytrading.
Now at this point of my journey, still wound not call myself a trader earning a living by any means (yet BUT, I guess I've gone to the other extreme, I make an effort to not watch tv, news, or even talk about which way the markets going etc. I do use a couple of indicators if I'm going to swing trade (bolloingerbands, Stoch', candlesticks)
For my other trades, I really only use MA's and chart pattens.
To summarize what I think my new break through in trading is, I would call it "letting the market tell me which way it's going, and try to follow Call me a trend follower I guess.
Later, Andy
Just to add my journey, when I first started I think I used most of the indicators out there, watch CNBC (24/7, even the animal shows
, read nearly all if not all the trading books I could find. Searched the internet concerning anything with daytrading.Now at this point of my journey, still wound not call myself a trader earning a living by any means (yet
BUT, I guess I've gone to the other extreme, I make an effort to not watch tv, news, or even talk about which way the markets going etc. I do use a couple of indicators if I'm going to swing trade (bolloingerbands, Stoch', candlesticks)For my other trades, I really only use MA's and chart pattens.
To summarize what I think my new break through in trading is, I would call it "letting the market tell me which way it's going, and try to follow
Call me a trend follower I guess.Later, Andy
Andy, you're a perfect example of the continuing evolution... refining, sharpening, getting rid of this, taking a look at that, different tools for different trades.
Profitseer, I missed your earlier post about the 3 traders and the ma crossovers. What an excellent point. And that example illustrates why I had asked at the beginning that no one bash another for discarding anything. Two guys apply the same method, each alittle differently and it costs them, the third guy makes a killing and swaeras by the the method.
It is that reason that systems typically do not become diluted from overuse...because no two people will trade the system the same.
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Over the last three years, I have gone from a 5 min chart to the daily chart. I wanted a bigger piece of the pie without putting in more work. The only way for me to get that was to get in on longer trends.
Profitseer, I missed your earlier post about the 3 traders and the ma crossovers. What an excellent point. And that example illustrates why I had asked at the beginning that no one bash another for discarding anything. Two guys apply the same method, each alittle differently and it costs them, the third guy makes a killing and swaeras by the the method.
It is that reason that systems typically do not become diluted from overuse...because no two people will trade the system the same.
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Over the last three years, I have gone from a 5 min chart to the daily chart. I wanted a bigger piece of the pie without putting in more work. The only way for me to get that was to get in on longer trends.
David Floyd article, free registration, after sign on, click on this link again http://www.sfomag.com/articlesdetail.asp?IssueMonthID=July&YearID=2002&ID=42
I discarded Bollinger Bands. They seem to work well no doubt, but again, not for my style of trading. They sure look pretty on the screen. Especially if you have the black background, and the bands in cobalt blue with the center line and concommitant ma's in rainbow colors.
But they had to go, I kept getting the urge to play Defender, or Missile Command!
But they had to go, I kept getting the urge to play Defender, or Missile Command!