Thanks.
Any particularly good sources to learn price action from? Is Al Brook's new 3-volume the way to go?
Any particularly good sources to learn price action from? Is Al Brook's new 3-volume the way to go?
Please teach me.
- Thread starter Evolution88
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If the idea of daytrading noise using a 5min chart and reading an author that did extensive research on the subject but it's not very articulate and clear to read somehow interests you, then you you might want to start with the first book of the new trilogy.
Be prepared to dedicate a few years to the series.
How I know is proprietary. Basically the indicator sees a triple moving average crossover equivalent to the third derivative, and from that motion you get confirmation of the reversal. Typically it does not keep going when it has done this. You know it won't because the indicator spots a change in trend, and also knows from price which levels it's at and where it might be heading.
Indicators with no extrememum values can still be optimized, as while there highs or lows are indeterminable, by price action the indicators will signal reversals.
The peak or trough is confirmed by the indicator's crossovers, in real time, such that when they are at certain levels you know it is highly likely a new trend is forming. I've had lower highs this year become breaches, and in that price action I know the breach is continuing, and thus close any shorts, or I wait for my stop losses to get out of the trade and wait for a new oscillation.
Yeah I agree with pretty much everyone else posting here. The indicators can be used as a supplement to the price action and the TREND.
As far as, " Stick to winners at least 3x the average loss or you wont make it far.", won't that destroy you if you get a choppy day or a choppy week even?
It seems like you would need to recognize the conditions & maybe go for 1x loss, or 2x loss at certain times. If price looks like it's going to take off you could always move your target up.
What kind of 3rd derevative boloxinger do you post here?Indicators with no 'boundaries' could not be optimized as they are way too lagging!Same with SMAs, how can you optimize moving averages??Any oscilator by its own nature does have a scale either 0 to 100 or +100(+1) -100(-1).How can highs or lows be indeterminable??
Well there are indicators without extremum's and the ergodic oscillator's only mission is to identify potential trades on those oscillations.
They're indeterminable in the sense of whether the oscillation is completed: ie:higher low that then goes lower, forming a breach lower low, or lower high, which can go higher, forming a breach higher high. In those cases your model will be out, but most of the time when it spots the trend change you'll end up with a profitable opportunity.
It's true you're always not sure with certainty when they will stop trending that direction, but you can win 70-75% of the time on the oscillations that do this. The rest comes out of price action.
+1. Very well said. The key to trading successfully isn't based on an indicator or some preset critieria; it's based on intuition -- call it a 6th sense -- and that can only be developed through time and experience if it can be developed at all. Douglas talks about this in his book "Trading in the Zone." You reach a point in your trading where you "just know." The "just knowing" is as close to the Holy Grail as you'll get. Indicators and preset criteria are still important but there comes a time when you have to know when to trust them and when to not -->> Experience. Keep plugging away and hope that you can develop that 6th sense.
Quote from nazzdack:
1) You're relying on random/inconsistent indicators. They "work" when they "work" and don't when they don't. :eek:
2) Instead of being a counter-trend trader, focus more on trend-following so you avoid the "trap" of getting runover by bulldozers & freight trains and you give your trades more upside potential.