Simple Profitable Method

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ok i did a late edit thanks...

Quote from mtwokay:

Electric, 1 tick = $10. ER2 is a great instrument to trade when it's moving but you need a way to filter out the chop, such as ADX. This morning is a perfect example. I've been in a no trade zone since 8:45. I use a 12 unit ADX and stay out when it's below 17.
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you got the opening short right? Where was the long? both were never above the zero line...(don't the wiggly lines need to be above the zero-line?) damn, i really got to re-read this thread...


Quote from trader28:

Days like this you have to target 1 point, I just grabbed 9 ticks on the long but didn't get any of the short this morning because it looked like someone had thrown up on my chart... I'm contemplating going to bed and catching up on my beauty sleep
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Quote from ElectricSavant:

you got the opening short right? Where was the long? both were never above the zero line...(don't the wiggly lines need to be above the zero-line?) damn, i reall got to re-read this thread...
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10 minute chart really just gives you a clue as to how strong the move might be, doesn't stop me from taking a 2min Zero Line cross or an MA cross supported by Zero Line, but if I'm long and the 10 min is below zero i wont hang around too long and wont be expecting a big move, becomes more of a scalp
You could ignore the 10 min all together but usually it will tell you when the big moves are in play, in the end the 2 min Zero Line is the key to the whole thing
 
So what did you do at 10:44 est?


Quote from trader28:

10 minute chart really just gives you a clue as to how strong the move might be, doesn't stop me from taking a 2min Zero Line cross or an MA cross supported by Zero Line, but if I'm long and the 10 min is below zero i wont hang around too long and wont be expecting a big move, becomes more of a scalp
You could ignore the 10 min all together but usually it will tell you when the big moves are in play, in the end the 2 min Zero Line is the key to the whole thing
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Quote from ElectricSavant:

So what did you do at 10:44 est?
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Are you talking about the long? my Metastock charts show Aussie time
2min crossed zero at 10:52
 
***UPDATE****

  • Trade ER2
  • 10m chart with 9d sma + MACD 12-26-9
  • 2m Chart with 9d sma + MACD 12-26-9

Rules
  • Do not trade the first 1/2 hr.
  • You are trading off of the 2 min chart the 10 min is there for re-enforcement.
  • When 10 min chart indicates MACD under the zero line then you are only looking for shorts on the 2m chart. When entering use the cross of the fast wiggly line in the MACD pane on the 2m chart with regard to the zero line. Both the 10m and the 2m need to be under the zero line. Reverse all of this for longs.
  • Stay in the trade for 10 min usually but you can get a "feel" for how volatile the day is after trading this a while. If you make 200 bucks with one contract before the 10 minutes TAKE IT!
  • You can jump start your entries by experimenting with that 9sma in either chart. Be careful here, this is discretionary.

Michael B.
 
trader28...a few more question (s)..

You do not consider a macd that indicates the averages above or below the zero line...you are more concerned with the crossing than their position...

Also...

This pear shaped spread that you refer too?...is that the angle of the lines you are referring to?

Michael B.
 
Pear shaped is just slang for a trade that goes against you (bad trade)

Not sure I understand the 1st question but the 2min Zero Line is key, lets take longs for example, if the MACD crosses it's MA below Zero then you wait for it to cross the Zero line and that is your entry, if you are already above the Zero Line then the MACD crossing above it's MA is your entry, there are only 2 trades (same for shorts but obviously below Zero)
 
ok..i went back to the first post...didn't you just violate this rule with your long this AM?


They'll go long on a MA cross to the upside when it is well below the Zero Line and wonder why it fails and has no momentum
 
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