Day-Trading 2.0 for small traders
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Floyd Roberts
How do you determine what moving average to use along with the 240WMA? I trade the NQ and look at either the 110 Tick or 30 Tick chart. The 6 WMA seems to crowd the bars too much and is extremely sensitive (whipsaws) especially on the 30 Tick chart. Do you have any suggestions on what moving average to use to replace the 6WMA? I don't like the idea of large stops so I'm a little leary about using a 55 WMA. Thanks for your help.
Are you talking about indicators for triggers or wave analysis?
If you need a visual aid for wave analysis I would recommend any smooth average, hull is a nice option but not too short 21 to 25 HMA will do the trick.
If you are talking about triggers that is a different issue. If you have been following this thread you can find some examples of triggers from random lines to stochastics (and also Hull and WMA as triggers). So far I have discussed under âdeveloping your own PBPâ posts some essential ideas about price analysis, choosing the right timeframe and analyzing the benefit of using indicators in your trading plan.
I canât recommend you a specific trigger because you need to find it yourself according to your trading plan. However If you follow a rigid price analysis approach, have chosen the right timeframe and know the âcui bonoâ of your indicators (Direction and Price Analysis Indicators) finding a trigger will be a much easier task because you will have limited your trading field (for an example look my last chart).
Of course there are still other topics that havenât been covered yet especially time, risk, stops, money management and psychology but I will open these topics for discussion later.
As I always say the order of analysis is crucial for developing a consistent PBP.
In any case if you want to discuss some specific issues about your trading plan send me a PM to avoid misleading people who are reading and contributing to this thread, I am always happy to exchange trading ideas.
TheRumpledOne, Dr.N, greddy
Thank you very much for your kind words
Evolution
How do you calculate your Pivots? I calculated the PP for the NQ on May 2 as follows:
(H 1985.75 + L 1921.50 + C 1983.25) / 3 = PP 1963.50
In your chart it appears that you arrived at your PP of 1980.50 by using 1971.50 as the previous dayâs low, or are you using another calculation for Pivot Points?
Thanks for the great thread.
Great observation!!! Most people didnât even notice â¦
First, I usually use daily bars for pivots:
(PP) = (Yesterday's High + Yesterday's Low + Yesterday's Close) / 3
(R1) = (PivotPoint * 2) - Yesterday's Low
(R2) = PivotPoint + (Yesterday's High - Yesterday's Low)
(R3) = 2 * PivotPoint + (Yesterday's High - (2 * Yesterday's Low))
(R3) = 3 * PivotPoint + (Yesterday's High - (3 * Yesterday's Low))
(S1) = (PivotPoint * 2) - Yesterday's High
(S2) = PivotPoint - (Yesterday's High - Yesterday's Low)
(S3) = (2 * PivotPoint) - ((2 * Yesterday's High) - Yesterday's Low)
(S4) = (3 * PivotPoint) - ((3 * Yesterday's High) - Yesterday's Low)
For reference on other pivots check ...sierrachart.com/index.php?file=doc_TechnicalStudiesReference.html
Second, yes you are right the daily PP is 1963.50 not 1980. This is not a hidden trick or a new fancy indicator I am going to sell later. Just use a little of imagination and common sense (the less common of the senses) . Btw, you already have found the answer, yes 1971.50 was used as a previous dayâs low I will explain this later but I donât want to mislead people thinking that I found the Holy Grail for pivot points and I forgot about priceâ¦.
Meanwhile I apologize for my âinvoluntary mistakeâ â¦
jjrvat,
mktman
Are you using previous day chart to determine support and resistance, like low of day, high of day, midpoint, close. open?
See answer above
IronFist
what timezone are you in? I can't get my chart to look like yours.
Europe GMT +1
jjrvat
How do you determine what moving average to use along with the 240WMA? I trade the NQ and look at either the 110 Tick or 30 Tick chart. The 6 WMA seems to crowd the bars too much and is extremely sensitive (whipsaws) especially on the 30 Tick chart. Do you have any suggestions on what moving average to use to replace the 6WMA? I don't like the idea of large stops so I'm a little leary about using a 55 WMA. Thanks for your help.
Are you talking about indicators for triggers or wave analysis?
If you need a visual aid for wave analysis I would recommend any smooth average, hull is a nice option but not too short 21 to 25 HMA will do the trick.
If you are talking about triggers that is a different issue. If you have been following this thread you can find some examples of triggers from random lines to stochastics (and also Hull and WMA as triggers). So far I have discussed under âdeveloping your own PBPâ posts some essential ideas about price analysis, choosing the right timeframe and analyzing the benefit of using indicators in your trading plan.
I canât recommend you a specific trigger because you need to find it yourself according to your trading plan. However If you follow a rigid price analysis approach, have chosen the right timeframe and know the âcui bonoâ of your indicators (Direction and Price Analysis Indicators) finding a trigger will be a much easier task because you will have limited your trading field (for an example look my last chart).
Of course there are still other topics that havenât been covered yet especially time, risk, stops, money management and psychology but I will open these topics for discussion later.
As I always say the order of analysis is crucial for developing a consistent PBP.
In any case if you want to discuss some specific issues about your trading plan send me a PM to avoid misleading people who are reading and contributing to this thread, I am always happy to exchange trading ideas.
TheRumpledOne, Dr.N, greddy
Thank you very much for your kind words
Evolution
How do you calculate your Pivots? I calculated the PP for the NQ on May 2 as follows:
(H 1985.75 + L 1921.50 + C 1983.25) / 3 = PP 1963.50
In your chart it appears that you arrived at your PP of 1980.50 by using 1971.50 as the previous dayâs low, or are you using another calculation for Pivot Points?
Thanks for the great thread.
Great observation!!! Most people didnât even notice â¦
First, I usually use daily bars for pivots:
(PP) = (Yesterday's High + Yesterday's Low + Yesterday's Close) / 3
(R1) = (PivotPoint * 2) - Yesterday's Low
(R2) = PivotPoint + (Yesterday's High - Yesterday's Low)
(R3) = 2 * PivotPoint + (Yesterday's High - (2 * Yesterday's Low))
(R3) = 3 * PivotPoint + (Yesterday's High - (3 * Yesterday's Low))
(S1) = (PivotPoint * 2) - Yesterday's High
(S2) = PivotPoint - (Yesterday's High - Yesterday's Low)
(S3) = (2 * PivotPoint) - ((2 * Yesterday's High) - Yesterday's Low)
(S4) = (3 * PivotPoint) - ((3 * Yesterday's High) - Yesterday's Low)
For reference on other pivots check ...sierrachart.com/index.php?file=doc_TechnicalStudiesReference.html
Second, yes you are right the daily PP is 1963.50 not 1980. This is not a hidden trick or a new fancy indicator I am going to sell later. Just use a little of imagination and common sense (the less common of the senses) . Btw, you already have found the answer, yes 1971.50 was used as a previous dayâs low I will explain this later but I donât want to mislead people thinking that I found the Holy Grail for pivot points and I forgot about priceâ¦.
Meanwhile I apologize for my âinvoluntary mistakeâ â¦
jjrvat,
mktman
Are you using previous day chart to determine support and resistance, like low of day, high of day, midpoint, close. open?
See answer above
IronFist
what timezone are you in? I can't get my chart to look like yours.
Europe GMT +1
jjrvat
Could someone help me out with the colored MAs for Ninja. I did have them, but had to reinstall Ninja and lost everything. Tried looking on the Ninja site too but to no avail. Any help would be much appreciated guys.
Thanks Italian, however I tried to import them and they came up as having errors and I was unableto import them. Im using NT 6.0. Have you been using them ok?
I got Sierra Chart and am running it with OEC as the backend and I'm still unable to have even a little success with this system. The colored MAs are cool tho 
Strangely, the newest version of SC doesn't work with a live OEC account due to some changes OEC made. Works on the demo version tho.
Anyway I'm having some weird system issues, like not being able to place orders using SC, and when I try to use volume charts of contract charts, I get some weird data on my graph that I know is corrupt (it also doesn't match what OEC Trader shows on the screen with the same settings).
Anyway, it seems like most of the trades that would be successful violate the rules laid on in this system (ie. going long while price is below the 240WMA). And every trade I see that fits the rules usually goes against me. It's like "under 240WMA... lower low, lower high, MA turns red, sell short, HUGE rally!" Beginners bad luck? lol.
The only instruments I've been trying this with are the YM and NQ (the only two I'm interested in trading at this point).
One thing I like about SC tho is adding Pivot Points (which I've never used before) doesn't mess up the scaling of the chart. When I add them in OEC it compresses everything so as to actually display all the PPs on the screen, and I can't readjust the scale to get it back.
Anyway, on to more experimenting.
Strangely, the newest version of SC doesn't work with a live OEC account due to some changes OEC made. Works on the demo version tho.
Anyway I'm having some weird system issues, like not being able to place orders using SC, and when I try to use volume charts of contract charts, I get some weird data on my graph that I know is corrupt (it also doesn't match what OEC Trader shows on the screen with the same settings).
Anyway, it seems like most of the trades that would be successful violate the rules laid on in this system (ie. going long while price is below the 240WMA). And every trade I see that fits the rules usually goes against me. It's like "under 240WMA... lower low, lower high, MA turns red, sell short, HUGE rally!" Beginners bad luck? lol.
The only instruments I've been trying this with are the YM and NQ (the only two I'm interested in trading at this point).
One thing I like about SC tho is adding Pivot Points (which I've never used before) doesn't mess up the scaling of the chart. When I add them in OEC it compresses everything so as to actually display all the PPs on the screen, and I can't readjust the scale to get it back.
Anyway, on to more experimenting.
I hope my questions aren't annoying 
My next question is posted on this chart example:
Chart setup:
300 constant volume chart
240WMA
144WMA (the other one, but ignore this one)
6WMA
also a 6 "Zero Lag MA". It pretty much matches the 6WMA but I was just plotting them both for comparison purposes.
My next question is posted on this chart example:
Chart setup:
300 constant volume chart
240WMA
144WMA (the other one, but ignore this one)
6WMA
also a 6 "Zero Lag MA". It pretty much matches the 6WMA but I was just plotting them both for comparison purposes.
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