What is best strategy for daytrading?
- Thread starter alasgar
- Start date
Till it is a trend day and you lose and lose all day long, then you study on what are trend days. Next day shows trend day and every divergence woulda coulda shoulda would have worked out but another day of losses for you.
Buy High and Sell Higher or Sell low and buy lower.
Do you realize professionals are here on this website? Sometimes, in very unusual circumstances, a wife makes her husband bored and he'd rather be on here than watch another TV show. Just a thought.
If you're asking about MACD, don't touch your brokerage account until you fully understand SEC 15C3-1.
You can thank me later.
If you're asking about MACD, don't touch your brokerage account until you fully understand SEC 15C3-1.
You can thank me later.
Yes and no ...
For indicator-based intraday trading (on days that it's appropriate and practicable), I think most people doing it for a living would probably agree that "choice of indicator(s)" contributes something like 5-10% toward the overall outcomes. The other 90-95% comes from general trading skills, specific daytrading skills, understanding price action, experience, and so on. Without plenty of education and practice with those, realistically, it's going to be kind of "academic" which indicator(s) you use.
That said, I think both MACD divergence and RSI divergence, with appropriate settings, can certainly be among the more useful ones to people who know their market(s) well.
Just my perspective.
I do use macd divergence but not for day trading, way too slow, and if you a beginner, trend is your friend. For me it took a real good five years to study charting reversals, and yes there are nuances in this price action, but way too many and most would not understand, trading is like levels of knowledge, more you learn, what you didn't see last year, NOW you understand today and again next year what you thought you understood becomes clearly then. Much better for younger traders to trade in direction of trend, we all want to buy low and sell high and diverences entice us to find bottoms and tops, but not practical till you know how to break down swings, waves within a swing, number of bars within a wave, ranges of individual bars, what is normal bar range of a wave and which waves are trend waves and which are ending waves, much much study so to better understand reversal patterns, with as you see slope of a trend happens after a "thrust" bar. Thrust bar is like a bar that occurs completely above like 20 sma, no part of bar is touching the 20sma, so now we look for pullback, and that can even be as simple as the 20sma itself. Study what happens if you enter on the 20sma, develop protective stops, targets, and snowballing into possible system.
It is best to study price at first, like 3-4 years if you aiming to make this a career, then you can add like RSI, but I use indicators as faster approach that staring at bars, I already know what the indicator will be doing most of the time, but it is just a down and dirty fast approach.
Good luck
It is best to study price at first, like 3-4 years if you aiming to make this a career, then you can add like RSI, but I use indicators as faster approach that staring at bars, I already know what the indicator will be doing most of the time, but it is just a down and dirty fast approach.
Good luck
Given that MACD is one of the most commonly used indicators, unless you add various other indicators to create a unique synthetic pattern you will be whipsawed like there's no tomorrow. It's not about the one indicator, it's about you finding a combination which provides a high probability of positive returns given that days market conditions.