Best indicator and time frame to use?

Quote from chifai2:

So, if indicator is lagging and not recommended, then, there is just - Price. How do you trade based on price? Momentum?

Please help...!:) I really want to learn from a successful daytrader--PLEASE ??
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Your crystal ball not working Chi?
 
Hi Houston!

As they say on the street. The Early Bird Eats First.

I've read a lot about market predictions, and many working great.

I'll post some info later.

Take care.

Dan





Quote from HoustonMark:

Uh, no....

I will just continue to use price as my indicator and let you carry on with whatever you think works...
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Quote from dan05:

Hi Houston!

As they say on the street. The Early Bird Eats First.

I've read a lot about market predictions, and many working great.

I'll post some info later.

Take care.

Dan
More...

Hi Dan...

Looking forward to it....

Best,

HM
 
Quote from chifai2:

I am new to daytrading, what is the best indicator(s) and time frame to use? (also any supporting software recommended ?)
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Thats like asking: what is the best car to drive?
 
(1) Newtonian physics falls apart in the real world. It works fine in a frictionless world between 2 bodies but the moment friction is introduced and/or a 3rd party is involved, it falls apart. I hate to use the word "chaos" to describe the market because so many people have exploited it to sell books, systems and such. But IMO, that's the best way to describe the markets. Because the markets have a feedback loop, it's a nonlinear dynamical system, ie chaos.

Most TA tools were developed in the early 80s where there was limited computing power ("stochastics", RSI, Bollinger Bands, CCI, etc.) and calculations were needed to be done fast either by hand or mentally. There were essentially rough drafts of ideas that needed further development.

(2) Equilibrium is a concept expounded by economists and academics who have never traded for a living. The markets do not seek equilibrium. If it did, the prices would be static. It seeks momentary stability but the fact that it is inherently unstable allows prices to move suddenly.

So, what does this mean? We can't use DSP, Fast Fourier Transform or anything based on an assumption of a continuous price/time series (markets are discontinuous due to gap openings, price shock, etc.). Same thing for Arima, garch, VaR, CAPM, etc. Moving Averages are nothing more than low bandpass filters (DSP - Digital Signal Processing).

What we can do is seek out the point of temporary stability (trading ranges), monitor it for the onset of instability (breakouts/breakdowns) and trade accordingly.

What we can't do is predict prices. What we can do is look at current market conditions and look for changes in those conditions.

Markets are like weather systems. We can't predict with certainty what the weather will be like 3 years or 3 weeks out but we can do it for the next 3 days or so. We can't be precise in this prediction (ie, "the temp will be 84 degrees Fahrenheit at 2:54 pm EST on Friday") but we can be accurate if we keep it rough (ie, "a high pressure system is moving in, driving out the low pressure system that was responsible for the rain of the last 4 days. Expect sunshine with some clouds, temperatures in the 80s during the day, 60s at night, etc."). Same thing with the markets.

--John Kuran
 
Quote from Lamont_C:

(1) Newtonian physics falls apart in the real world. It works fine in a frictionless world between 2 bodies but the moment friction is introduced and/or a 3rd party is involved, it falls apart. I hate to use the word "chaos" to describe the market because so many people have exploited it to sell books, systems and such. But IMO, that's the best way to describe the markets. Because the markets have a feedback loop, it's a nonlinear dynamical system, ie chaos.

Most TA tools were developed in the early 80s where there was limited computing power ("stochastics", RSI, Bollinger Bands, CCI, etc.) and calculations were needed to be done fast either by hand or mentally. There were essentially rough drafts of ideas that needed further development.

(2) Equilibrium is a concept expounded by economists and academics who have never traded for a living. The markets do not seek equilibrium. If it did, the prices would be static. It seeks momentary stability but the fact that it is inherently unstable allows prices to move suddenly.

So, what does this mean? We can't use DSP, Fast Fourier Transform or anything based on an assumption of a continuous price/time series (markets are discontinuous due to gap openings, price shock, etc.). Same thing for Arima, garch, VaR, CAPM, etc. Moving Averages are nothing more than low bandpass filters (DSP - Digital Signal Processing).

What we can do is seek out the point of temporary stability (trading ranges), monitor it for the onset of instability (breakouts/breakdowns) and trade accordingly.

What we can't do is predict prices. What we can do is look at current market conditions and look for changes in those conditions.

Markets are like weather systems. We can't predict with certainty what the weather will be like 3 years or 3 weeks out but we can do it for the next 3 days or so. We can't be precise in this prediction (ie, "the temp will be 84 degrees Fahrenheit at 2:54 pm EST on Friday") but we can be accurate if we keep it rough (ie, "a high pressure system is moving in, driving out the low pressure system that was responsible for the rain of the last 4 days. Expect sunshine with some clouds, temperatures in the 80s during the day, 60s at night, etc."). Same thing with the markets.

--John Kuran
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I agree with your point. Your speech sounds like the tradingpro.com site. Are you related to tradingpro?
 
Quote from chifai2:

So, if indicator is lagging and not recommended, then, there is just - Price. How do you trade based on price? Momentum?

Please help...!:) I really want to learn from a successful daytrader--PLEASE ??
More...

Here is the basis of a method for trading price posted some time ago by Charlie Dow -

You will have to put some thought and effort into it - he doesn't give away details such as which oscillator, which chart increments etc., but if you are willing to work, you should be able to figure it out.

Please note the important point Charlie makes about NOT using the indicator (oscillator) to initiate trades..

Quote

I won't go back over the rudimentary stuff i watch, you can read tht earlier in this thread. I will take you from that point to the next step though.

Trading in that fixed environment is a 4 step process.

(Price oscillations are determined strictly by Price but verified by a single momentum indicator. The key is to trade price and NOT be lulled into trying to trade the indicator. That will kill you)

1. Read Primary Market Trend (On Trend Chart) - This is either Bull, Bear or Consolidation transitioning from one to the other. Each is easily read in Real-time because the Prime oscillations are very slow in being created and confirmed.

2.Read where Price is "Coming From" in the above Trend or Consolidation, i.e. From Prime Resistance (Creating Prime Resistance) or From Prime Support (Creating Prime Support)

Once read these two points give you the strength of the Trend and only TREND! These are read from a specific Trend Chart increment. Bull or Bear or Consolidation (coming from a Bull or Bear) & Price coming UP from Prime Support or DOWN from Prime Resistance. Here is where you need to "THINK".

a. Bull/Price UP from Prime Support (HL) - STRONG BUY
b. Bull/Price UP from Prime Support (LL) - WEAK BUY
c. Bull/Price DOWN from Prime Resistance (HH) - WEAK SELL
d. Bull/Price DOWN from Prime Resistance (LH) - STRONG SELL but must Breach last Prime Support or Consolidation is verified.
e. Bear/Price UP from Prime Support (HL) - STRONG BUY but must Breach last Prime Resistance or Consolidation is verified.
f. Bear/Price UP from Prime Support (LL) - WEAK BUY
g. Bear/Price DOWN from Prime Resistance (HH) - WEAK SELL
h. Bear/Price DOWN from Prime Resistance (LH) - STRONG SELL

Now that you have determined the current strength of Price in the Trend, we prepare for entry on are Trading Chart. The Trading Chart is a perfect part of the incremental whole of the Trend Chart.

3. Read Price so that you prepare to execute a trade at a Prime level on your Trading Chart in the Direction of Strength on your Trend Chart. As you can see listed above that is only going to be at one of 4 specific points in the Trend.

4. On the momentum pullback (in the opposite direction of the trade you are about to take, watch price create a bottom or top and then a (Failure to make a Price ONLY HH or LL) in the direction of strength. Execute your trade and place an immediate stop one tick above or below you entry Trading Chart Support or Resistance level.

4a. The ultra-conservative trade would be to allow price to oscillate one time after the Prime Oscillation on your trading chart where that oscillation creates a HL or LH to execute a trade from.

Remember this is all taking place in a strictly viewed chart increment environment so the clarity of the oscillations both at Prime and Minor levels is critical.

Unquote

I hope this is of some assistance.

Good Luck,

HM
 
Quote from alesanti:

I agree with your point. Your speech sounds like the tradingpro.com site. Are you related to tradingpro?
More...

Not familiar with it. Sorry.

Not my speech, tho. It's a quote.
 
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