Day-Trading 2.0 for small traders

[jjrvat]

Don’t confuse timing with price analysis. We traders tend to focus more in the “technicalities” of trading more than the only important thing: PRICE.

TheRumpledOne (btw, thanks 4 posting) has a good point behind his charts: Develop your own strategy to pull the trigger, if you are good are programming, write some code and create your nice trigger, if you are good at candlestick analysis use it, know how to read the DOM great, you love MA crosses do it, etc, etc. Make it yours and only yours. As long as you are consistent with price analysis you will have a good system.

Here is another good example of how IT DOESN’T MATTER what you use to pull the trigger as long as you are consistent with price analysis. Soybeans ZSh8 with simple stochastics (yesterday-today).

You know the analyis: Macro Direction ok (240 WMa and PP), Wave direction ok ( Lower low, lower high), Trigger in this case simple stochastics cross!!!! Why it works perfectly in this case? because of price analyisis not because of the indicator

jjrvat

 

[TheRumpledOne]

Quote from scJohn:

I am not sure what you are doing . You just post a chart and assume we know what you are doing. A little more explanation with the chart would be appreciated.

Explain?

I am just following the price action based on the teachings presented in this thread.

My DIGITAL COMPASS just tells me which way the price is going... up or down. All TRADING 101 stuff.

If you see Higher Lows, then trend is up.

If you see Lower Highs, then trend is down.

So I look at the wma(240) and the price. That gives me what I call my overall trading BIAS.

Then I look at the Ind(5) {similar to WAM(6) } and the highs and lows.

I can scalp when the M1 and M5 arrows flip.

Looking at the longer time frame arrows, give you an indication of what's ahead. If they are in the direction of your trade, they you are going with the flow.... simple.

But this thread isn't about my DIGITAL COMPASS... it's about PRICE ACTION!!

 

[scJohn]

Quote from TheRumpledOne:


I can scalp when the M1 and M5 arrows flip.

[/B]

Can one assume that M1 and 5M are based upon 1 and 5-minute bars?

 

[TheRumpledOne]

Quote from scJohn:

Can one assume that M1 and 5M are based upon 1 and 5-minute bars?

Yes.

M1 = 1 MIN

M5 = 5 MIN

M15 = 15 MIN

H1 = 1 HOUR

H4 = 4 HOUR

D1 = DAILY

W1 = WEEKLY

MN1 = MONTHLY

 

[TheRumpledOne]

Another text book day.

If you are quick and not greedy, you can rip 3 - 5 pips repeatedly.

 

[Trayo]

Quote from TheRumpledOne:

Using my TRO DIGITAL COMPASS, I can see what is happening on multiple time frames in a glance.

TRO,
Thanks for sharing all the charts.
What the heck is a digital compass??

 

[Trayo]

In other words, is this your creation, did you program it or is it available somewhere?
Very nice...

 

[TheRumpledOne]

Yes, it is my creation.

It is available but this is not the place for me to talk about it.

 

[TheRumpledOne]

The indicators are not what is important.

Look at the chart.

See the price action.

1) Price is above the wma(240) so trade bias is LONG.

2) Price crossed above the TRADE TRIGGER moving average line and the trades produced many pips!!

Notice I have my TRADE TRIGGER moving average multicolored. When the line turns from YELLOW to GREEN the trade is on.

3) Also a counter trend short was triggered when the line turned from YELLOW to RED.

If you are not greedy, these are easy pips.

 

[pkchilly]

Hey TRO,
Is that on MT4? And what is the basis for the color change? Just relation to 240wma? or does it have to do with the indicators below? Nice, nonetheless! If it is with MT4 have you set autotrader and back tested or forward tested...? Thanks for sharing...

And also thanks to jjrvat for allllllll the wonderful information! It looks like you trade bp most, do you also trade the jpy some? (6jh8). I have been trying to follow what you have said to do and am finding success. Sincere thanks! pk