Leading indicator for trading E-mini contracts
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I like m_c_a98 reply:
-3min bar chart with 20pd simple moving average and all support and resistance lines drawn from the trade prospector software.
-5min candlestick chart with a customized parabolic SAR indicator
But I would add that I do follow the all3 cash indices, the dow jones futures , the dollar index and the T-bonds futures (will change to following the ten year notes now)
I also use support and resistance like in the chart attached (we offer free trial for that)
-3min bar chart with 20pd simple moving average and all support and resistance lines drawn from the trade prospector software.
-5min candlestick chart with a customized parabolic SAR indicator
But I would add that I do follow the all3 cash indices, the dow jones futures , the dollar index and the T-bonds futures (will change to following the ten year notes now)
I also use support and resistance like in the chart attached (we offer free trial for that)
I suggest that you have a look at the RSI as a leading indicator. From my experience, I think it is one of the best one.
Try to catch key supports/resistances, and also focus on the indicator rythmics in itself, whatever the period of time you are looking at. By rythmics, I mean, divergences validation and failure swing, up and down trends...
In addition, the RSI helps in finding "theorical" targets, watch the 50%+/-5 levels, something often happen there. It just coincides with key levels; therefore it is very helpful for risk/reward evaluation and exit points...and many more.
Then you can combine it with the candlestick approach, fibo retracements...or other technical tools.
good luck,
Try to catch key supports/resistances, and also focus on the indicator rythmics in itself, whatever the period of time you are looking at. By rythmics, I mean, divergences validation and failure swing, up and down trends...
In addition, the RSI helps in finding "theorical" targets, watch the 50%+/-5 levels, something often happen there. It just coincides with key levels; therefore it is very helpful for risk/reward evaluation and exit points...and many more.
Then you can combine it with the candlestick approach, fibo retracements...or other technical tools.
good luck,
Dear 2_B
What you say is interesting, but, please can you add some more explanation on $tick: how is defined and how to best interpret it?
Thanks
you wrote:
$TICKQ, note however that Esignal only updates this symbol every 30 seconds per the support page, so if scalping based only on this becareful. I trade the ES mainly, so I never follow that one myself. I do follow the NYSE TICK though. Its symbol is $TICK, which updates every 6 secs.
I don't use TICK readings for entering orders though. However, I will use it sometimes for exiting orders. Say I'm long the ES, and then I see the $TICK move from 500 to 1000+ in just a couple of readings. However the ES doesn't follow thru and actually starts dropping a little on that TICK move. Well to me I would read that as a divergence and would probably exit, as we could be at a turning point.
Hope that helps,
What you say is interesting, but, please can you add some more explanation on $tick: how is defined and how to best interpret it?
Thanks
you wrote:
$TICKQ, note however that Esignal only updates this symbol every 30 seconds per the support page, so if scalping based only on this becareful. I trade the ES mainly, so I never follow that one myself. I do follow the NYSE TICK though. Its symbol is $TICK, which updates every 6 secs.
I don't use TICK readings for entering orders though. However, I will use it sometimes for exiting orders. Say I'm long the ES, and then I see the $TICK move from 500 to 1000+ in just a couple of readings. However the ES doesn't follow thru and actually starts dropping a little on that TICK move. Well to me I would read that as a divergence and would probably exit, as we could be at a turning point.
Hope that helps,
How is Tick defined?
The tick index is the net difference of the numbers of stocks last traded on an uptick from those last traded on a downtick.
How best to interpret it?
That's a tough question, as that's up to the eye of the beholder. I don't believe that there is any "best" way to read it. I believe that there are many different ways to use the TICK. I will try and provide a couple more examples of the way I use it for reference.
As with anything else, it will just take some time and experience to get a feel for using the TICK. So just start watching the TICK on a daily basis and try and apply some of the ideas that I provide along with any other ideas that you may run across. After watching the TICK using these ideas/approaches for a while you should be able to evaulate whether it is of any value to you. There are many different approaches to using the TICK, so doing a search on Elite, SI and some other boards for TICK references will give you some more ideas I'd imagine.
Besides the divergence example I gave in the previous post, which is the main way I use it, I'll throw out a few more things I watch for.
1. If I'm looking for a long entry in the ES and the TICK is giving a high reading of 900+, I generally will not take it there, as the move could be about over. I will then wait and start watching for the TICK to correct back down to the zero level or a level that has been the lower end all day. Somedays the TICK readings only pullback to the 200 level before the move continues. Once at the lower level I will then enter a long if the reason for the long entry/chart setup is still valid.
2. If the TICKs have been positive, above 0, all day long and we are in the last hour of trading, after 3PM. I will not take any shorts, even if a good bear flag sets up, that I would normally take during any other time period. The reason I do this is that over time I have found that if the market has been strong all day, the last hour is no time to try and short it, as the pullbacks if any will be small. It doesn't work out like this all the time, as there have been a few days where the markets were strong all day long and then in the last 20min they drop like a rock.
So take some of these ideas along with any other ideas that you may run across and apply them and see if any work with your style of trading. My approaches are not the "best" way to use the TICKS, but for my style of trading it works for me.
Hope that helps,
2-B
The tick index is the net difference of the numbers of stocks last traded on an uptick from those last traded on a downtick.
How best to interpret it?
That's a tough question, as that's up to the eye of the beholder. I don't believe that there is any "best" way to read it. I believe that there are many different ways to use the TICK. I will try and provide a couple more examples of the way I use it for reference.
As with anything else, it will just take some time and experience to get a feel for using the TICK. So just start watching the TICK on a daily basis and try and apply some of the ideas that I provide along with any other ideas that you may run across. After watching the TICK using these ideas/approaches for a while you should be able to evaulate whether it is of any value to you. There are many different approaches to using the TICK, so doing a search on Elite, SI and some other boards for TICK references will give you some more ideas I'd imagine.
Besides the divergence example I gave in the previous post, which is the main way I use it, I'll throw out a few more things I watch for.
1. If I'm looking for a long entry in the ES and the TICK is giving a high reading of 900+, I generally will not take it there, as the move could be about over. I will then wait and start watching for the TICK to correct back down to the zero level or a level that has been the lower end all day. Somedays the TICK readings only pullback to the 200 level before the move continues. Once at the lower level I will then enter a long if the reason for the long entry/chart setup is still valid.
2. If the TICKs have been positive, above 0, all day long and we are in the last hour of trading, after 3PM. I will not take any shorts, even if a good bear flag sets up, that I would normally take during any other time period. The reason I do this is that over time I have found that if the market has been strong all day, the last hour is no time to try and short it, as the pullbacks if any will be small. It doesn't work out like this all the time, as there have been a few days where the markets were strong all day long and then in the last 20min they drop like a rock.
So take some of these ideas along with any other ideas that you may run across and apply them and see if any work with your style of trading. My approaches are not the "best" way to use the TICKS, but for my style of trading it works for me.
Hope that helps,
2-B
hi
I wonder if you trigger your entries with the 30tick chart when the trend in the 3min or 5 is matching?
Is not the 30tick chart to noisy? Could you please give us your impressions and experiences with this "timeframe"?
Thanks very much indeed
Marvin
I wonder if you trigger your entries with the 30tick chart when the trend in the 3min or 5 is matching?
Is not the 30tick chart to noisy? Could you please give us your impressions and experiences with this "timeframe"?
Thanks very much indeed
Marvin
here is something I sent my clients as my little indicators:
KEY EVENTS TO WATCH FOR:
9:15 AM ET. December leading economic indicators (seen +0.8%, last
+0.5%)
Major support and resistance to watch for:
NQH2: > 1590, 1618, 1630,1670 < 1561, 1536, 1520, 1491, 1460, 1432
SPH2 (ESH2) >1139, 1145, 1149, 1154 <1133.50, 1129, 1125.50, 1120, 1116
Comments from INO:
The US stock indexes were higher overnight due to short covering as
they consolidate some of last Friday's losses. The March NASDAQ 100
was higher overnight and is testing December's low crossing at 1559,
which was broken last Friday. However, last week's breakout below
this support level has opened the door for a likely test of the 38%
retracement level of the rally off last September's low, which
crosses at 1512.95 later this month. Overnight strength sets the
stage for a steady to firmer open by the NASDAQ composite index when
it opens later this morning. The NASDAQ 100 was up 11.00 points at
1559.00 as of 7:40 AM ET. The March S&P 500 index was also higher
overnight as it is working on a potential inside day but remains
poised to test the December low crossing at 1115. The March S&P was
up 2.00 points at 1133.70 as of 7:42 AM ET.
The Nikkei 225 Stock market closed sharply lower on Tuesday and below
last week's low thereby renewing its decline off January's high. If
the decline continues, November's low crossing at 9,955 is March's
next likely target. Below this support level is the 75% retracement
level of last fall's rally, which crosses at 9,809. Momentum
indicators remain bearish signaling that additional weakness
near-term is possible. The Nikkei closed down 229 points to 10,051.
Good trading!
Sincerely,
Ilan Levy-Mayer, M.B.A
Vice President
Cannon Trading Co Inc.
http://www.cannontrading.com
KEY EVENTS TO WATCH FOR:
9:15 AM ET. December leading economic indicators (seen +0.8%, last
+0.5%)
Major support and resistance to watch for:
NQH2: > 1590, 1618, 1630,1670 < 1561, 1536, 1520, 1491, 1460, 1432
SPH2 (ESH2) >1139, 1145, 1149, 1154 <1133.50, 1129, 1125.50, 1120, 1116
Comments from INO:
The US stock indexes were higher overnight due to short covering as
they consolidate some of last Friday's losses. The March NASDAQ 100
was higher overnight and is testing December's low crossing at 1559,
which was broken last Friday. However, last week's breakout below
this support level has opened the door for a likely test of the 38%
retracement level of the rally off last September's low, which
crosses at 1512.95 later this month. Overnight strength sets the
stage for a steady to firmer open by the NASDAQ composite index when
it opens later this morning. The NASDAQ 100 was up 11.00 points at
1559.00 as of 7:40 AM ET. The March S&P 500 index was also higher
overnight as it is working on a potential inside day but remains
poised to test the December low crossing at 1115. The March S&P was
up 2.00 points at 1133.70 as of 7:42 AM ET.
The Nikkei 225 Stock market closed sharply lower on Tuesday and below
last week's low thereby renewing its decline off January's high. If
the decline continues, November's low crossing at 9,955 is March's
next likely target. Below this support level is the 75% retracement
level of last fall's rally, which crosses at 9,809. Momentum
indicators remain bearish signaling that additional weakness
near-term is possible. The Nikkei closed down 229 points to 10,051.
Good trading!
Sincerely,
Ilan Levy-Mayer, M.B.A
Vice President
Cannon Trading Co Inc.
http://www.cannontrading.com
I have been trading for ten years using a variety of systems and methodologies, nothing seemed to work for any length of time. I took a seminar last year on a projection methodology that enabled me to clearly see the tops and bottoms of the S&P before they ever occurred, with an 80% accuracy. The even better thing is that the methodology has been recently written in a computer program that does all the work for you using Trade Station as the charting platform. This thing is incredible and works on any market on any time frame. I am still amazed at how the market will go straight to these marked areas and turn on a dime and go back the other way. My first month of conservative trading I did 18 trades and had 12 winners. This was just using a 3-4 point stop with a 3-7 point profit target. 
Hi FibProTrader
Thanks for your reply:
I am very interested in automated systems, since I do believe that altough risks are there (e.g. unexpected stops activated, due to spikes, malfunctions) they can override the psycological problems of trading.
Can you please tell
1. the costs of this system
2. some more info, where to attend the seminar, web-links, etc
Thanks
Thanks for your reply:
I am very interested in automated systems, since I do believe that altough risks are there (e.g. unexpected stops activated, due to spikes, malfunctions) they can override the psycological problems of trading.
Can you please tell
1. the costs of this system
2. some more info, where to attend the seminar, web-links, etc
Thanks