Intraday Directional Trading and the Dead Zone

C

candletrader

For those intraday traders amongst you, do you feel that the dead zone offers enough volume follow-thru (on average) to produce meaningful moves?
 
I rarely play them candle... Less then 10% of my trades occur between 11:45 & 1:30... But with that said there are some nice counter-trend (tick divergence) set-ups that occur between 11:30-12...

PEACE and good trading,
Commisso
 
There should certainly be a 3rd category to this poll, along the lines of "Although they make up less than 25% of my trades, when the opportunity is there I take it."

BTW Candle, whassup with all these polls? This is your fourth one in the last few weeks! :confused:
 
Our traders take advantage of the slower time of the day to trade pairs and M&A a bit more. They get the "berries" handed out from the "assistant" specialists and brokers (while the boss is at lunch). This is the #3 time frame in the full trading day, and the markets reward those with discipline, and takes away from those who "try to make things happen."

Since good traders respond to the market, as opposed to initiating "plays" then they must be more selective during this time period.

The discipline here is tough....sort of like sitting someone down in front of a video poker machine, handing them a whole bucket of quarters, and telling them not to play....unless they see an edge...


Don
 
Originally posted by Commisso
I rarely play them candle... Less then 10% of my trades occur between 11:45 & 1:30... But with that said there are some nice counter-trend (tick divergence) set-ups that occur between 11:30-12...

PEACE and good trading,
Commisso
More...

In case anybody was wondering what I meant
 

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Originally posted by Don Bright
and the markets reward those with discipline, and takes away from those who "try to make things happen."

Since good traders respond to the market, as opposed to initiating "plays" then they must be more selective during this time period.

The discipline here is tough....sort of like sitting someone down in front of a video poker machine, handing them a whole bucket of quarters, and telling them not to play....unless they see an edge...


Don
More...

Well said Don...

PEACE and good trading,
Commisso
 
commisso,

could you explain a little more about the tick divergence? I understand the basics, but how can you set a stop?
 
Ashe,

I set it up VERY simply I just plot a line chart of TickQ over a line chart of NQ...

When you see a new low in the index and not in the TickQ (reverse for longs) you are on look out for soup...

There is a lot of intuition involved though... You watch enough failed bo's/bd's you will just get a "feel" for the set-up... Keep your risk tight though! Because you do not want to get caught holding the bag fading a BO or BD :)

PEACE and good trading,
Commisso
 
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