Quote from volente_00:
I agree.
When you clutter up your mind with many different indicators you will find yourself victim to analysis paralysis.
In the end price is what matters and not a derivative of it.
Price price price. Acceptance. Rejection. Momentum.S/R. Trendlines. There are some excellent thread in here and other trading sites that discuss this.
LF: Indicators are lagging. They are calculated by PAST price. They tell you what price did, not what price is going to do.
How much $ has the TICK and your sector charts netted you? I'd venture to say that have cost you. A lot. Time. $ indecision. Bad info.
The S&P and the DOW and the Nazzie are what I watch. Not crude. There's little correlation. Not the 6E. Not the $
Pull up the 3 indices on a 2 min for yesterday. At the LOD, whaT do you notice about the Naz vs the SnP and Dow? The Naz bottomed long before the other two = strong buying in tech at that price area. A rising tide floats all boats. My first thought was that tech was going to lead us higher for the rest of the morning session = strongest momemtum in tech. The market then consolidated, then coiled/compressed like a spring, especially the Naz. It made higher low after higher low = strong BUYing. It finally broke out then pulled back slightly, and I pounced on the NQ (a carpenter has more tools than just a hammer). It blasted up well ahead of the other ndices, confirming my theory. I rode it up until it lost momo and consolidated, then TOOK PROFITS.
Then the market consolidated/coiled, but the Naz got the flu = few, if any, buyers at that level for the pm session. That's fine. I also have a saw, and a drill. But there were no signs of sellers, meaning there were no spikes down, no momo to the downside, no lower lows, the most recent support was still intact. We were just drifting down, watching some profit takers. So I'm still looking long, right? Why not? Strong rejection at the LOD. Buy programs clearly doing their thing. We broke out to the upside, and we're at the HOD. We might go sideways for the rest of the day, but I'll do whatever Mr Market tells me to do.
My buddy Naz was sick, so I look to see who to play with next. Lo and behold, strong buying in a Dow component/sector causes the Dow to breakout and lead us up. I don't trade the YM, so I grab some ES but keep an eye on the DOW for strength and momo. Looking good so far. My 15 says the buying won't stop until they shut off the lights, but I don't get greedy and take profits at the top of the channel and grab a brewski cuz it's five o clock somewhere and I'm happy with the day.
