etfswingtrade, ammo, ddoonie, Bingoking, bilbod, toucan, BlowFish, umitd
Thanks for your comments
bilbod
Excellent post !!!
(
http://www.elitetrader.com/vb/showthread.php?s=&threadid=113456&perpage=6&pagenumber=129)
What are your views on time charts? I am use to the 5min chart, and is why i use it for my entries. I see that you all use tick/volume charts, which makes sense to me. I'm watching a 4000 tick chart, secondary confirmation i guess..( ddoonie)
Time charts have a unique feature over all other form of charts: the obvious
control of time. Controlling the frequency in which each bar is formed it is very helpful, it allows to have a time reference to make decisions, it tells a trader when to watch the screen, when itâs too late to entry and when to get ready to pull the trigger among other things.
These characteristics are especially important if you are âscalpingâ or trading fast timeframes. However and as you probably know,
there is always a tradeoff when trading: in this case, bouncy charts, more whipsaws, lots of choppy (because of the nature of time charts, bars are plotted regardless of volume size or # trades) and missing some trades (most of them if you are using a bad time chart for your instrument) because of the size of the trigger bar can make a very bad entry.
In my opinion, the higher the timeframe the less impact these bad factors your trading plan will have. Again, the âfundamentalistâ (long term traders) and investors are right and thatâs why, âceteris paribusâ, trading daily, weekly or monthly charts are by far the best option.
Sometimes time charts can be poor for trading analysis but good enough as 2nd timeframe trigger when using multiple timeframes in slow charts. In general as a rough reference (it depends on the instrument) the chart below summarize my opinion on time charts.
TIP: As you have noticed Heiken-ashi will help a lot smoothing time charts, but donât forget to set the parameters of the current candle to the real price (and not HA candle formula), otherwise you are not going to get valid information to pull the trigger
Ironfist,
I have been reading your comments the last few weeks. IMHO, your wave analysis has improved a lot which is really good, but you seem to be stuck in that level of analysis. Among others, you are not paying attention to
time, price and macro direction, your
entries and exits are too rigid for the instrument you are using, and as I mentioned before you do not fully comprehend the
extend of your timeframe (as ddoonie pointed out 10 tick drawdown is peanuts if you are intending to catch all 100 ticks).
Bingoking has a very good idea (Have you ever tried "no indicator?") trading naked. I propose you an idea that may help you and can improve the content of this thread:
A live analysis exercise. Pick an instrument and timeframe slow enough to post live charts and comments but fast enough to have intraday position. Iâll post a live chart based on that for the discussion and we will try to build upon to find some answer for your concerns. Of course the idea is everybody can comment or lurk and that you and only you find the ârightâ option for your PBP. Let me know if you want so I can think about details.
jjrvat
