Market Code Crack'd?

[floortradr542]

I like the camaraderie here. Offer quality opinions and insights, get them in return. I can't help but think that in the end, it is every trader for himself. Share, but do not reveal.

Unless one's insight into crowd psychology is keen, I try not to use indicators that others do. In which case, you can anticipate the crowd (what will the crowd who is using this do right here?) and be contrarian.

In my experience, S&R levels is a hit-or-miss deal. Which means there is not much statistical signifigance to them. Mark Fisher has some validity to his ideas but traditional levels are iffy at best. I like trailing stops, there is no bias. Bar closes opposite trail by at least 1 tick, exit. No questions.

 

[floortradr542]

A trader I know uses a channel breakout system with a moving average crossover thrown in for good measure.

When price hits support or resistence on the 10 minute chart channel AND there is a moving average crossover at the same time, there is your entry signal. Exit, I assume, is opposite wall or moving average un-crossover.

For those looking for a new idea to explore, this sounds as good as any. Simple. Concise. If so, let me know how it goes.

 

[version77]

Quote from JimmyJam:

nah, he's just joke'in withcha.

you know version's quite the prankster

JimmyJam is correct. I was trying to be funny like usual.

I was just trying to say if you ARE looking for trends, you will find
one if you look at enough time frames, ect...

I really don't have that many charts up. It would drive me nuts...

 

[Cariocas]

Was about to reply with one of those "Are you serious?!" posts. Funny though.

Cariocas

Quote from version77:

JimmyJam is correct. I was trying to be funny like usual.

I was just trying to say if you ARE looking for trends, you will find
one if you look at enough time frames, ect...

I really don't have that many charts up. It would drive me nuts...

 

[4re]

Quote from floortradr542:

A trader I know uses a channel breakout system with a moving average crossover thrown in for good measure.

When price hits support or resistence on the 10 minute chart channel AND there is a moving average crossover at the same time, there is your entry signal. Exit, I assume, is opposite wall or moving average un-crossover.

For those looking for a new idea to explore, this sounds as good as any. Simple. Concise. If so, let me know how it goes.

Floortradr,
This method you are talking about is a sound method. Fairly close to what I was using. The moving average is just a kicker. Really good for keeping you in a trend if used properly. By using it properly here is what I mean. If you look at just technical analysis, trand lines to be more specific. We know that the strongest trend lines are between 30 and 45 degree trend lines. Well if you use say 20day EMA and it is between 30 and 45 degrees. I have found it to be very good at keeping you in a trend.

When using S/R it may be helpful if you will look at different times to determine the STRONGEST levels from previous days. Not just any small area of consolidation.

One of the best lessons I have learned came from Mark Douglas's book Trading In The Zone. At the end of the book where he challenges the reader to trade like a Casino. The object of the exercise being to convince yourself that trading is just a simple game of probabilities(numbers), not much different from pulling the handle of a slot machine. At the micro level, the outcomes to individual edges are independant occurrences and random in relationship to one another. At the macro level, the outcomes over a series of trades will produce consistent gains.

This exercise will make you trade in a certain manner over a given number of trades instead of changing your methods after a couple of losing days. I hope you don't mind me chiming in. Good luck to you.

Sincerely,
4re

 

[JimmyJam]

Quote from 4re:

When using S/R it may be helpful if you will look at different times to determine the STRONGEST levels from previous days. Not just any small area of consolidation.

Sorry I thought I might have made it clear.

The example that I gave is how I think of and use the concept of Support & Resistance, it is not how 4re uses it.

Best,

Jimmy

 

[4re]

Quote from floortradr542:



In my experience, S&R levels is a hit-or-miss deal. Which means there is not much statistical signifigance to them. Mark Fisher has some validity to his ideas but traditional levels are iffy at best. I like trailing stops, there is no bias. Bar closes opposite trail by at least 1 tick, exit. No questions. [/B]

Hey Jimmy,
I knew what you were saying. I was more trying to answer this question from Floortradr. About S/R being hit or miss. Sometimes it seems that way if you are not picky about your S/R levels.

Good Tading today,
4re

 

[floortradr542]

4re,

You stated the channel and moving average method I described is close to what you WAS using. No more? Why did you stop if it was effective??

 

[4re]

Quote from floortradr542:

4re,

You stated the channel and moving average method I described is close to what you WAS using. No more? Why did you stop if it was effective??

I just started my second company and right now it is taking a lot of my time getting it off the ground. So I had to put futures on the back burner for a while. I'll be doing some long term option trades until I get freed up some.

4re

 

[JimmyJam]

Quote from floortradr542:

I like the camaraderie here. Offer quality opinions and insights, get them in return. I can't help but think that in the end, it is every trader for himself. Share, but do not reveal.

Speaking of sharing knowledge, the guys over at the ES Journal are ladling it out in spoonfuls.

It kinda makes ya magnanimous when so many are willing to make you privy to their trading conversations.

BTW, the breakout was resoundingly rejected this morn', which is why I have time to post here.

Later,

Jimmy