Quote from JimmyJam:
Through creative use of moving averags (my preference) or oscillators (not consistent enough for my tastes) you can very easily determine when an indice is oversold/overbought.
By utilizing a higher time frame it's possible to consistently enter trade with the dominant trend when the lower timeframe is out-of-synch with it.
But you must make sure you have a method/tool/indicator which enables you to catch the trend as it moves back in the direction of the major trend.
If you're bored, put in some time over here:
Why do people use Volume, Range and Tic charts?
One of the best threads on the site, and I highly recommend it. It will open your eyes to how to view price action while removing the element of time, which isnt necessary to intra-day trading, because we're only trading price.
Good trading,
JJ
I am a momentum trader, so I am picking up what you're putting down for the most part....
