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What oscillator(s) do you recommend for scalping in day trading?
- Thread starter Bearcrazy
- Start date
Quote from bellman:
Yeah, it's a nice post I agree, but the OP was asking about a scalping strategy which would be for smaller, more frequent moves, not pivots.
Yes, I agree with your assessment. No one, so far, has posted any indicators and their corresponding signals for scalping nor for a scalping strategy.
While the OP is tied to oscillators for some reason, he could consider a vast number of other indicators and their signals and particularly leading indicators.
Quote from baggerlord:
I use RSI a lot for overbought/oversold conditions. All oscillators will work pretty much the same IMO, just pick one if you need one. PS here is an awesome scan for finding stocks in play.
http://www.trade-ideas.com/View.php...e=10&MaxPrice=200&MinVol=8000000&WN=Flipped:+
How does one use this scan?
Quote from chrisdunn:
I partially agree... Fib retracements and extensions are HUGE! I use MACD and Bollinger bands to assist me in my decisions. (notice, I didn't say I use the indicators to make the decisions for me!).
I've done some trading videos on my blog. Check it out!
Chris Dunn
http://chrisdunn.typepad.com/blog/
Fib retracements are completely useless. This has been studied quite a lot (one attached below) So your videos are relatively baseless.
Attachments
Quote from TraderZones:
Fib retracements are completely useless. This has been studied quite a lot (one attached below) So your videos are relatively baseless.
I see what you're saying. I don't think there's any special magic in the fib numbers themselves, but it's more of a visual gauge for people. For example, a 50% retracement is a 1/2, and 61.8 is about 2/3. I don't take trades just because I'm at a fib level either... I wait for my momentum indicator and price action to line up.
Fib extensions are kind of the same... 100% extension equals the same move as the previous run, minus the retracement. From my experience, the extension levels are very accurate, especially 61, 100, and 138. There's no way you can tell me the market doesn't react to those levels... just happens to much.
Quote from chrisdunn:
I partially agree... Fib retracements and extensions are HUGE! I use MACD and Bollinger bands to assist me in my decisions. (notice, I didn't say I use the indicators to make the decisions for me!).
I've done some trading videos on my blog. Check it out!
Chris Dunn
http://chrisdunn.typepad.com/blog/
If it's ok to ask, what are your macd/bollinger band settings? If it's private, I will understand.
Quote from chrisdunn:
I see what you're saying. I don't think there's any special magic in the fib numbers themselves, but it's more of a visual gauge for people. For example, a 50% retracement is a 1/2, and 61.8 is about 2/3. I don't take trades just because I'm at a fib level either... I wait for my momentum indicator and price action to line up.
Now THAT is a good answer! There is nothing wrong with using retracements. The problem is, when people believe and preach things without any clue whether it is true
From my experience, the extension levels are very accurate, especially 61, 100, and 138. There's no way you can tell me the market doesn't react to those levels... just happens to much.
Not a good answer. That is exactly what studies disproved. The Fib retracements were no more significant than any other number. Again, it is a belief.
Quote from TraderZones:
Ok, I didn't join this message board to argue with people. But I really need to say this...
I was trading this morning and took a short on a pull back, closed at the 61 ext (WHERE IT BOUNCED), re-entered on another pull back, closed at the 100 ext (WHERE IT BOUNCED), shorted again on a third pull back and closed at the 138 ext (WHERE IT BOUNCED AGAIN!). Too many people look at fib extensions, no matter if they know what they are or not. Like retracements, they too are visual levels.
I'm not telling you that study doesn't have merit, but what I am saying is that the fib extensions WORK FOR ME. Personally, I could care less what any other traders' theories are. If I see something that CONSISTENTLY works for me, I'm going to use it.
Best of luck to every one!
Chris Dunn
P.S. I really hope ET is more than people just arguing theory.
Quote from chrisdunn:
P.S. I really hope ET is more than people just arguing theory.
That is why there are market studies to see what works and what does not, instead of having a theory. Some people use them to avoid things that are useless. Others don't get it. Seriously. That is why 95% of traders lose their money. They use beliefs instead.
So long