Simple Profitable Method

[Bearbelly]

Did you read what I wrote? I said two of the trades were not legitimate. You had the cross at 9:50 and two reentries when price popped below the 3sma. Heres the chart. Dont forget I am trading the YM and not the ER2.

 

[whatever92]

hawthtrader, are you following YM or ER2? I believe BearBelly is trading YM.

 

[JimmyJam]

Quote from gongish:

i noticed that when you expand the amount of time included in a chart it changes when the signal is triggered.
has anyone tried expanding their chart to include more time? from one day and an hr to two or three days? why does this happen, and which is really right?

This happens because all moving average indicators are derivative of the frame in which they are analyzed (in this case time, ie, 2min, 5min, 10min, etc.).

If you increase/decrease the data set (which is what you are doing when you look at more days compared to less). You will get different signals across the board.

So in other words, a lot of the signals on the smaller time-frame are actually random noise (which is one of the major problems of intra-day trading on a lower time frame). The kicker from this system, and what T28 (in all of his incarnations) has brought to the table is the use of a qualifier, in the form of using the higher time-frame to determine trend, and to only take the random noise signals in that direction.

Regards,

JJ

 

[Bearbelly]

Gotta love that random noise.

 

[Trader28Lite]

(((_!_))) pardon my random noise

 

[hawthtrader]

You're quite right, BB, I'm trading the ER2 and I thought you were too. My bad - but thanks for the explanation and chart anyway.

 

[JimmyJam]

Ah come on guys!

The lower the timeframe, the more random the price action, that's why it needs at least one qualifier.

The system delivers it, I'm not trash'in it or anything.

Regards,

JJ

 

[Bearbelly]

As I understand it coach only uses the 10min to decide whether to hang with a trade or not. I dont look at it at all. I think noise is a relative term. No doubt swings on the 2 min. are noise on the larger time frames but then I would say ticks are noise on the 2 min. timeframe. You are accustomed to watching larger time frames. If you watch nothing but the smaller time frames the noise would eventually become readable swings. The only difference, imo, is your stops and targets are smaller.

 

[bmwhendrix]

Another look-see, I like the behavior of a 9/10/5 MACD. Let a crossover be confirmed with a trend break.

 

[rukuz]

Talk about a trending afternoon...