Day-Trading 2.0 for small traders

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Quote from jjrvat:

veggen, Alegnus

Thanks.

It’s a little more “messy” than just HA candles. This chart is a 3LB with normal HA candles based on a 2 period Wilders smoothed “HA candles” ("FHA" candles). If you have SierraCharts you can search the free FHA.DLL I posted somewhere in their support board.

Alegnus, IronFist

The aim of this chart was explaining momentum not a trading chart but yes, in general you are 100% right in your comments.

Nevertheless, I posted 2 charts so you can compare where the key momentum plays are, you should pay more attention to the 1st. The 2nd chart is not necessarily a trigger chart (timing) but if you are sharp enough you can use it to spot where a reversal has complete and a new round of shorts would have started in the naked chart.

Look the “Devil is in the details”. For example, study the area between 10:10 and 10:22 if you want to read the same 100% clear end of the reversal in the naked chart in the smoothed chart you have to look at the LOWS not the colour of the candles.

In my perspective the visual effect created with this chart is not given by how perfect green and red candles show waves but if you pay attention to detail is on how the up candles have a higher lows (or equal at the extremes) and the opposite for down candles. (*** This is achieved because the 3LB component doesn’t plot all prices above a green candle or below a red candle but will always plot the prices below a green candle /above a red)

So obviously the key point to watch in the example (10:10 / 10:22 and all the others) is the break of the last bar low not an opposite colour bar forming. As you can see this point will 100% correspond with the point in the naked chart where price failed to make HH and a few bars after broke the last Low making a 100% confirmed LH and LL.

jjrvat
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Jrrvat, If I am understanding you correctly, are you implying using the 3LB chart as more of an "anchor" chart showing the trend, and using the candlestick chart provided as more of an "entry" chart?
 
rroz123, mdl060374,

Your welcome and thank you for your kind words.

As I said before the problem with forex for small traders is not its instruments but how "prostituted" this non regulated market is (brokers,slipagge, data manipulation, overleverage, etc, etc). Of course you can apply price analysis in forex but if you are pretending to “scalp” a 20 tick euro/jpy chart with a bucket shop with a 3 tick slippage you will not last long.

IMHO, you can apply price analysis to any market. If you are going to trade forex and you don’t have a lot of capital my recommendation will be go for the longer timeframes (nothing below 15 mins) start with the minimum size until you've mastered after that just increase size but don’t go to smaller timeframes (otherwise move to a serious pro Forex environment or trade stocks or futures).

mdl060374,

That 3lb chart was just a way to explain momentum from a “cleaner” perspective and not for trend analysis. But yes if you find useful to visualize current direction with this chart I think is a valid option, it will keep you in the right side of the move. Of course you can’t forget the clean chart for timing and wave analysis...

jjrvat
 
Quote from jjrvat:
if you are pretending to “scalp” a 20 tick euro/jpy chart with a bucket shop with a 3 tick slippage you will not last long.

my recommendation will be go for the longer timeframes (nothing below 15 mins)
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jjrvat
Thank you for your reply.

So, not taking "bad brokers" & slippage into account
(by the way, ECN brokers nearly don't have execution
problems< maybe only during significant news) -
you're saying - that it possible to trade Forex
at M15 chart (at minimum).

What about other "dangerous" markets?
 
Hi,

I'm here, still reading, analyzing jj's charts and posts, demo trading ... indeed one of the few useful thread on ET and very well written ...

I'd like to thank you for that ...
 
WAKE UP people!

there is no "high probability" intraday setup!

the market (just like roulette) HAS NO MEMORY.
ESPECIALLY NOT intraday!

as there are always opposing groups trading: those who go with the trend and those who hunt stops at resistance/support

Hence: it' s always 50/50 in the end

pattern work only TEMORARILY (like a positive streak in roulette), and then out of the blue the negative one wipes out your gains

traders do have a chance on a DAILY day-to-day basis, as here other more "serious and quantitative" factors kick in:
options trading, expirations, volatility, standard devs, long term trends

for another idea: checkout "pairstrader" and "gapstrader"

there you at least have quantifiable odds!
 
The market has no memory, but men do ! And when it comes to their money, men usually have a very good memory. Therefore creating support and resistance area (and moves between those support and resistance areas).
you, wake up.
 
Quote from milimabuse:

no, wrong:

TOO MANY MEN chasing TOO MANY upport and resistance zones in TOO MANY timeframes...

hence: always 50/50 chance per se
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So are the people who are consistently profitabl trading short timeframes just lucky?...or do they not even exist and are just lying? cheers
 
indeed..lucky!

depends on the "consistently" definition:

who makes 50% annually daytrading with less than 25% yearly drawdown??

that' s the "consistently" benchmark.

anyone doing that "and not lying", gets my hat and respect..no problem.
 
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