I agree with 4re. Soon enough you realize that all indicators lag the market and that you will hit home runs sometimes but over time you will always be breaking even or losing money. The greatest indicator is price action, it never lies and can always be used to predict future activity so you can anticipate moves. Just use some of the basic indicators ema's, volume, boll bands to get an overall picture of the market.
Frosty's e-mini journal
- Thread starter frostengine
- Start date
Thanks Apex, I really believe that once you understand why and hiw prices move you are one your way. Then if you will learn a few chart patterns you can do very well. Since I am a breakout trader I really study patterns like flags, pennants, wedges, and triangles. I don't trade everyone I see but I do draw them as I see them and I even post them in my journal for everyone to watch. It is great practice. I only take one to two trades a day but I practice a lot.
Have a good weekend,
4re
4re,
In my opion I do understand why and how price moves..... until rather recently I really didnt use all that many indicators besides a basic MA to keep me in the direction of the trend... I used a lot a long time ago didnt have much success just as most here have said. That is why I said I was discretionary trader at the start of this journal. I dont go by set chart patterns like flags and pennats and what not, its more of a gut feeling just from seeing the market moving for a few years now and seeing how the price reacts to things.... when I was trading like that everyone said I had no plan, so now i'm trying to use indicators to have something set in stone that I do this when this happens and so forth..... I guess I really didnt have a plan or a certain setup I woudl take, but I would be able to recongize what was happening and trade that... lately I feel I have gotton away from that and now I do worse than I was doing before..
Oh well, will give this a shot by trying to come up with a strategy based on the charts I dispaleyd earlier, will add some indicators and what not to them tomorrow and hopefully get some good feedback in developing this strategy.
In my opion I do understand why and how price moves..... until rather recently I really didnt use all that many indicators besides a basic MA to keep me in the direction of the trend... I used a lot a long time ago didnt have much success just as most here have said. That is why I said I was discretionary trader at the start of this journal. I dont go by set chart patterns like flags and pennats and what not, its more of a gut feeling just from seeing the market moving for a few years now and seeing how the price reacts to things.... when I was trading like that everyone said I had no plan, so now i'm trying to use indicators to have something set in stone that I do this when this happens and so forth..... I guess I really didnt have a plan or a certain setup I woudl take, but I would be able to recongize what was happening and trade that... lately I feel I have gotton away from that and now I do worse than I was doing before..
Oh well, will give this a shot by trying to come up with a strategy based on the charts I dispaleyd earlier, will add some indicators and what not to them tomorrow and hopefully get some good feedback in developing this strategy.
Here are the charts for the new method i'm working on..... it contains all the indicators needed to generate these signals. The only signals to look at are the long green and red vertical bars that go all the way through......
The core of the method revolves around full stoch when it starts to curl back up. I'm open for all thoughts and comments about if this is tradeable.... Or if you see something on the indicators that would help filter some of these signals...
The core of the method revolves around full stoch when it starts to curl back up. I'm open for all thoughts and comments about if this is tradeable.... Or if you see something on the indicators that would help filter some of these signals...
here is yesterdays chart using the same methods....
To me it seems slightly profitable going with a 10 pt targer and 5 pt stop, too small of a sample to know anything though...
To me it seems slightly profitable going with a 10 pt targer and 5 pt stop, too small of a sample to know anything though...
I am sorry to say that if you are trading real money based on what you are seeing on these charts you are giving money away. I was expecting a Christmas carol to start playing with all the pretty red and green.
I am being honest here, there is no system in that chart. You said it earlier, you trade on hunches. You can put 20 or 30 more indicators in there and hell you might even want to get rid of the CHART all together. But I wish you would just give your money to charity instead of to the wall street guys. Sure would be quick.
Sorry,
4re
P.S. have you ever heard less is more
I am being honest here, there is no system in that chart. You said it earlier, you trade on hunches. You can put 20 or 30 more indicators in there and hell you might even want to get rid of the CHART all together. But I wish you would just give your money to charity instead of to the wall street guys. Sure would be quick.
Sorry,
4re
P.S. have you ever heard less is more
Buy the retracements back to the MA, or just ride the trend with a trailing stop, you would have made some serious cash doing that. Hey have we talked about this before.
You cannot keep flopping around changing this adding that, you are only adding confusion.
Drop the signals, clean up that chart.
frosty - I am a first time poster in your thread, but I have to agree with these other posters - that is WAY too much on your chart. I think you will suffer from 'paralysis by analysis'. In other words, what are the chances that all of your indicators at the same time give you a signal? If little, you will then have to decide how many need to line up in order to take it. You'll also have to consider if stochastics, macd, or whatever must always agree, etc. etc. The rules for something like this could go on forever.
If you want an indicator, find one and learn it inside and out. Just keep in mind that all indicators are lagging, right?
If you want an indicator, find one and learn it inside and out. Just keep in mind that all indicators are lagging, right?
Quote from brownsfan019:
frosty - I am a first time poster in your thread, but I have to agree with these other posters - that is WAY too much on your chart. I think you will suffer from 'paralysis by analysis'. In other words, what are the chances that all of your indicators at the same time give you a signal? If little, you will then have to decide how many need to line up in order to take it. You'll also have to consider if stochastics, macd, or whatever must always agree, etc. etc. The rules for something like this could go on forever.
If you want an indicator, find one and learn it inside and out. Just keep in mind that all indicators are lagging, right?
Way to freaking go!!! This is a guy who gets it. They are called lagging indicators for a reason (because they lag).
Frost, it seems like you are hoping that if you have a whole bunch of crystal balls they will tell your future. But the crystal balls you are looking at are only telling you your future 5 minutes late.
4re
This is exactly why in the initial charts I posted I did not show the indicators, on my charts I look at I have them hidden, I do not need to see them.. the only thing I need to see is the one vertical paintbar. All the lining up of the indicators, and indicators doing this and that I dont have to watch for that, the paintbar will display when they are happening and then I can take the signal if I agree with what is going on...
The only indicator on that page that I need to display is the money flow. I am trying to look at ways of using that as a confirmation to the paintbar singal generated
The only indicator on that page that I need to display is the money flow. I am trying to look at ways of using that as a confirmation to the paintbar singal generated