Finding an Edge

[IAlwaysWin]

First step: stop asking people about finding an edge..this eliminates the imformation overload issue.
Second step: use common since; more buyers in the market then sellers, more sellers then buyers.
Third step: what's the most reliable source for gathering data for step 2.

Volume and momentum

 

[Alfing]

Volume and momentum

What about people who got to a stage when they are ready to learn but do not know where? Where can one learn more about momentum and volume?

 

[ElectricSavant]

TraderEX works with that successfully...

What about people who got to a stage when they are ready to learn but do not know where? Where can one learn more about momentum and volume?

 

[padutrader]

My advice would be to start finding the trend. Once you have a good definition, market movements do not seem random anymore.

yep find the trend.....do not be in a hurry to enter when you do find it.....because the best is saved for the end....the fastest moves occur late in the trend when everyone is sure about the trend.

i used to enter early and then had to sit for a long time because the early part of the trend is the most uncertain, and most times would close before the real trend starts.

also be aware that this will give the worst risk reward but i would not worry too much about that.
i never used tight stops because you can never buy the bottom or sell the top exactly time after time after time so tight stops are senseless.
ALSO BE AWARE THAT THE MARKET DOES NOT TURN ON A DIME...but it takes time to turn around, so just look out for when the market is taking a lot of time to move in one direction so that you will know it will turn and then just sit out till it turns around and forms a well defined trend so that THEN you can enter.

before it forms this well defined trend it will chop around till it finishes off all those traders - both long and short- who are trying to get in early in the trend with tight stops.......

concentrate on the simple stuff....not esoteric theories like demark elliot gann or complicated algorithms

 

[tomorton]

If this is Price Action, there are quite a few guys who promote it. Whom do you prefer? Brooks, Volman, someone else?

Haven't read any Brooks or Volman. I have read stuff by Michael Covel and Mark Fisher that seriously promotes trend-following. Youtube clips etc., by Alpesh Patel and Rayner Teo. But there must be dozens of others.

 

[padutrader]

Agreed. But then there are trend changes and no-trend times. How to do about those?

both trend changes and no trend times will be quite clear....you could go down to a lower time frame to find a trend but do not go below 5 min unless you are a die hard, hard core XXX trader !

 

[padutrader]

Haven't read any Brooks

LUCKY FELLOW I WASTED 10 YEARS ON THAT BS

 

[padutrader]

why do markets trend? because that is the easiest thing to do : to change the trend is too difficult so follow the line of least resistance;everyone does that!

 

[Alfing]

yep find the trend.....do not be in a hurry to enter when you do find it.....because the best is saved for the end....the fastest moves occur late in the trend when everyone is sure about the trend.

That's an interesting thought! Never thought about it.

 

[ElectricSavant]

It always amazes me how a price can rise/fall with little volume. One observation is it falls faster.

Es

why do markets trend? because that is the easiest thing to do : to change the trend is too difficult so follow the line of least resistance;everyone does that!