What chart do you read?
- Thread starter WmWaster
- Start date
Heh, no tape this time.
The reason I chose candlesticks is pretty obvious. One extra dimension of visual data via the open and close allows you to incorporate japanese candlesticks analysis into finding tops, reversals, continuation patterns, etc. To do that with bar charts requires an extra level of abstraction.
I require intraday charts that span most of two days, so tick is right out.
That said, I really wish eSignal had candlevolume, as I'd use that instead.
The reason I chose candlesticks is pretty obvious. One extra dimension of visual data via the open and close allows you to incorporate japanese candlesticks analysis into finding tops, reversals, continuation patterns, etc. To do that with bar charts requires an extra level of abstraction.
I require intraday charts that span most of two days, so tick is right out.
That said, I really wish eSignal had candlevolume, as I'd use that instead.
I voted others.
To specify, charts of all types give me performance anxiety.
So I donât look at them. Each screen I look at is covered with a single indicator and I am looking at multiple timeframes (4 or 5) simultaneously on the one instrument. I have dumbed it down so much that I donât even look at the latest price quote - I really can do without such pressure. The indicator patterns (CCI) are pretty similar day to day, and my exact rules on go and no go are ingrained in me so situational pressure is easier to deal with. Only when I absolutely have to I may sneek a peek for a second or two to check the candlestick formation to confirm what I suspect.
On the higher TF's the patterns don't have to be fully formed - as long as it's in the zone and lower TF patterns all line up then it's a go. If I have a losing trade it's not me that messed up, so that helps too.
To specify, charts of all types give me performance anxiety.
So I donât look at them. Each screen I look at is covered with a single indicator and I am looking at multiple timeframes (4 or 5) simultaneously on the one instrument. I have dumbed it down so much that I donât even look at the latest price quote - I really can do without such pressure. The indicator patterns (CCI) are pretty similar day to day, and my exact rules on go and no go are ingrained in me so situational pressure is easier to deal with. Only when I absolutely have to I may sneek a peek for a second or two to check the candlestick formation to confirm what I suspect.
On the higher TF's the patterns don't have to be fully formed - as long as it's in the zone and lower TF patterns all line up then it's a go. If I have a losing trade it's not me that messed up, so that helps too.
I use a 1 minute timeframe barchart; a tick chart; 1 level II quote window, and that is about it.
If I look at a chart on a higher timeframe (30 and above), I will use candles. I use a 5 - 15 minute timeframe to locate major support and resistance zones.
I have an 8, 34, and 200 MA plotted on the 1 minute timeframe, or I have a 14, 50, and 200 MA plotted on the 1 minute timeframe (currenty testing the differences between the two).
I use price crossovers or bounces off the 200 MA for good low risk entries. I use the 8 or 14 MA to locate strong trends and use it to wait for a break of that line to get in on a reversal. I use the 34 or 50 for a more longer-term trend. Generally will be short below the 34 or 50 and long above the 34 or 50. This is all on the one minute timeframe.
I'd like to learn how to read Level II quotes, but with stocks like AAPL, BRCM, VLO, NEM, it is almost useless because of how fast it moves. I also use a time & sales window. I don't properly know how to integrate it in my trading, but I have been watching it. I guess Level II and T&S are more useful for a little less liquid stocks.
Support and Resistance zones are plotted. When a chart pattern starts to form, I will plot it, and the MA's are disregarded. My favorites are Triangles, there are a ton of them to be find intra-day, just got to look hard. I like breakout or breakdown plays. Those are also very low risk high reward.
That's about it.
Coolweb was telling me I should automate my system, but I don't know how I could automate all that.
===
I also have been testing out Forex. Try plotting a 50 SMA and 200 SMA on a 4 hour timeframe. Try it on the EUR/USD pair. I do believe I could perhaps automate a system for Forex on a 4 hour timeframe in the future, but I'm still focusing on Equities, but Forex does seem like an interesting back-up, especially with the news about CME-Reuters hook-up.
http://www.elitetrader.com/vb/attachment.php?s=&postid=1056862 There is my set-up. *Note, the Laser chart is a candlestick chart, but I have an eSignal chart pinned overtop that one when I trade, so that is why the Laser one is Candlestick*
Why do I give away my simple system. Because more people using moving averages to define trend would help my set-up would be kinda wacky. I don't know why moving averages work, and I don't challenge it, I just use what works to make me money, which is what we all do anyways.
http://img231.imageshack.us/img231/5051/eurusd3py.png There is an interesting chart with the 50 SMA and 200 SMA on the 4 hour timeframe with the EUR/USD. Notice how price reacts to those MA's? It isn't anything amazing, but, it works....
Simple and sweet is good to eat.
BTW, thanks WmMaster for making a better poll than I did, at least someone did
If I look at a chart on a higher timeframe (30 and above), I will use candles. I use a 5 - 15 minute timeframe to locate major support and resistance zones.
I have an 8, 34, and 200 MA plotted on the 1 minute timeframe, or I have a 14, 50, and 200 MA plotted on the 1 minute timeframe (currenty testing the differences between the two).
I use price crossovers or bounces off the 200 MA for good low risk entries. I use the 8 or 14 MA to locate strong trends and use it to wait for a break of that line to get in on a reversal. I use the 34 or 50 for a more longer-term trend. Generally will be short below the 34 or 50 and long above the 34 or 50. This is all on the one minute timeframe.
I'd like to learn how to read Level II quotes, but with stocks like AAPL, BRCM, VLO, NEM, it is almost useless because of how fast it moves. I also use a time & sales window. I don't properly know how to integrate it in my trading, but I have been watching it. I guess Level II and T&S are more useful for a little less liquid stocks.
Support and Resistance zones are plotted. When a chart pattern starts to form, I will plot it, and the MA's are disregarded. My favorites are Triangles, there are a ton of them to be find intra-day, just got to look hard. I like breakout or breakdown plays. Those are also very low risk high reward.
That's about it.
Coolweb was telling me I should automate my system, but I don't know how I could automate all that.
===
I also have been testing out Forex. Try plotting a 50 SMA and 200 SMA on a 4 hour timeframe. Try it on the EUR/USD pair. I do believe I could perhaps automate a system for Forex on a 4 hour timeframe in the future, but I'm still focusing on Equities, but Forex does seem like an interesting back-up, especially with the news about CME-Reuters hook-up.
http://www.elitetrader.com/vb/attachment.php?s=&postid=1056862 There is my set-up. *Note, the Laser chart is a candlestick chart, but I have an eSignal chart pinned overtop that one when I trade, so that is why the Laser one is Candlestick*
Why do I give away my simple system. Because more people using moving averages to define trend would help my set-up would be kinda wacky. I don't know why moving averages work, and I don't challenge it, I just use what works to make me money, which is what we all do anyways.
http://img231.imageshack.us/img231/5051/eurusd3py.png There is an interesting chart with the 50 SMA and 200 SMA on the 4 hour timeframe with the EUR/USD. Notice how price reacts to those MA's? It isn't anything amazing, but, it works....
Simple and sweet is good to eat.
BTW, thanks WmMaster for making a better poll than I did, at least someone did
