Anyone using indicators successfully for day trading?

Mechanical, System, Algo, whatever you want to call them traders are generally using statistics. Often statistics of Technical Indicators.
 
They said:
Often statistics of Technical Indicators.
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this is a very rare glimpse of how to successfully use indicators.

the formula is simple just observe and create rules. the indicator fails because of the data it's applied upon not the math behind it. improve the data and the results will improve, nothing wrong with pure price action only as well. many ways to succeed.
 
speedo said:
I use a double stochastic which is a stochastic of a stochastic, off the shelf stock Ninja. I use it to filter signals and as a signal if I get divergences across time frames. I've used others similarity, including custom MACD and Sto. For my purposes it's not as important what as how.

Incidentally, knowing what others use is not likely to do you a bit of good without your doing your own observation, study and testing. My derivative tools are an adjunct of observing and understanding price action and not a substitute.
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Thank you.

I've experimented a bit with stochastics in the past, but never felt comfortable with that indicator. I have not tried the double stochastics though. I will give it more study for sure.

I already have a methodology that's working, but there's certainly room for improvement and I'd like to remove some of the discretionary element of what I'm currently doing.

I'm not under the illusion of finding a magical indicator, but I think it can be useful as part of a system and even as a final signal in a sequence of filters.

Could your methodology be automated? Or is there still a lot of filtering/discretion even when using your indicator?

Also, since you mention divergences, does this mean you utilize the indicator on all your time frames and need them all to line up?

Thanks.
 
I don't code so I am not sure if it can be automated but I would consider it tough to do as yes there is a discretionary element despite defined signals. Yes, my three time frames have the same ma's and sto and need to concur in their defined ways to validate a signal.
 
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I made some changes to indicators that I searched for that are not standard in charting packages. For the standard indicators, I changed the settings. One of them is similar to stoch but heavily modified.

Howard said:
Interesting.

Mind me asking you which indicators you are using? :)

Proprietary custom indicators that will remain secret or anything you could share?

Thankful for any pointers in the right direction.
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It is a fact that for blue chip stocks for example, when they swing hard one way compared to their peers, they will swing back the other way a high degree of probability.
So you could use a sentiment type indicator to spot anomalies of the stock universe herd you are following.
The harder the move to one extreme, the more probable for a reaction back to the mean.
These sort of plays are quite common.
There are a number of different type indicators one could use to do the same job of finding these occurances.
With futures, where the market closes for the business day is often roughly where it will open the next business day, so for overnight, one could trade the extremes.
 
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Envolopes here pretty much only. there SMA based and they lag kinda, but not as there good for range most of the time, but everything has to lag, you can't see the trend has changed until after it's changed sadly, or we'd all be billionaires. It's about spotting in time to jump on and spotting it's changed and jumping back off, before it's too late.
 
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