before i dig myself into that Bar By Bar thread, ....... i just want your quick recommendation if I should read Al Brook's book "Reading Price Charts Bar by Bar" (2009). usually alot of nonsense in threads so i tend to avoid after it had gone past 8 pages or more and the main topic degenerated. but i like to hear your opinion about the book. thanks.
Indicators for intraday
- Thread starter jb514
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Quote from NoDoji:
Thanks! I swing trade equities in some retirement accounts and I day trade mostly oil futures and some ES.
I occasionally watch silver for amusement purposes only; I would never try it at home.
I posted on the BAR BY BAR thread recently something regarding this: "The environment surrounding a setup is as important as the price bar or multi-bar pattern itself."
During range/chop, you can sit on the sidelines until a trend or breakout sets up, or you can learn to trade a range. A moving average flattens during range/chop, meaning price will close below and above it perhaps multiple times until clarity and direction appear.
In a well-defined uptrend, however, price will rarely close below the 20-period MA for more than one price bar. Look at oil futures today (CL) once price closed above the 20-bar MA on the 5-min chart. Price continued to trend up through five pushes and close above the 20 MA for over two hours before a shooting star at an extreme (new high) signaled a possible reversal or a consolidation range.
What I posted here on this thread was: Your goal is to capture significant profits on "more often" with-trend price swings and to limit losses when the "not" occurs.
In a perfect world all trades would be winners. There's an overwhelming belief that emerges on ET that says TA is crap, price action trading is crap, trading is totally random, you can't win, blah, blah, blah, simply because higher probability setups are not fool-proof.
I worked with a trader last year who kept asking me at the end of my trades how I knew price was going to do "X". I would explain that I didn't know, that I never know where price will go on a trade, only that more often than not when a particular pattern appears, price move "X" follows. Because of the time and effort I put into developing my trading plan, a majority of my trades would go to the price target I expected. So he thought I somehow knew price was going to do that, even though at the time I put on the trade, the chart looked a bit "iffy" at the hard right edge. He thought there was some signal in the setup that ensured success, but there is no certainty in trading.
You look for odds in your favor (trends attract more players in the direction of the trend), and you implement a risk:reward ratio that allows you to profit from the "edge".
Here is my entire post from the BAR BY BAR thread:
this girl knows her stuff. I say we keep her around here. Whadduya say fellas.. A vote yes or no!!. I say yes, lets let her stick around......
Excellent post NoDoji, as usual
EF
Is there any real effect out of voting? We can't even get rid of 'bearice' despite voting .......Quote from Eddiefl:
this girl knows her stuff. I say we keep her around here. Whadduya say fellas.. A vote yes or no!!. I say yes, lets let her stick around......
Excellent post NoDoji, as usual
EF
Everything works until it doesn't including price action, s&r, moeny management,you name it. I know a couple very successful fund managers who pay a lot of attention to overbought/oversold conditions. But that it not the only thing they pay attention to and this is the key. Their final decisions take into account a multitude of indicators and methods and more importantly experience.
There are plenty of vendors out there willing to sell you the perfect indicator! Just ask them!
I was lucky enough to get in on the last of a very limited run of the PinkyBlue System, created by Pinky of Pinky and the Brain (short on pinky, buy on bluey).
http://imageshack.us/photo/my-images/713/pbw.png/
Fortunately, there are a zillion vendors out there, but the only ones that are worth anything start by asking you about the health of your kidneys....
I was lucky enough to get in on the last of a very limited run of the PinkyBlue System, created by Pinky of Pinky and the Brain (short on pinky, buy on bluey).
http://imageshack.us/photo/my-images/713/pbw.png/
Fortunately, there are a zillion vendors out there, but the only ones that are worth anything start by asking you about the health of your kidneys....