A Comment On Intraday Charts

Discussion in 'Trading' started by OldTrader, Aug 12, 2003.

  1. Yet another delusional 'day-trader' claiming to avg of 100% a month utilizing the crack cocaine of charts -- a 5 minute bar...

    #21     Aug 12, 2003
  2. My method cannot be traded by looking at an intraday chart. Evidently you have not read my explanations of what my method stems from.

    So there's no further confusion, YOUR method works by using intraday charts. HOW YOU use them is still a mystery. My example simply used an intraday chart pattern. Just an example to help illustrate a possible advantage of looking at what the underlying stocks/sectors.

    If using intraday charts in some type of manner is working for you, and you don't see any particular value in my comments, then continue on as you are.

    #22     Aug 12, 2003
  3. bubba7


    Maybe this will help. Luigi already replied to you but it didn't seem very focussed mentally.

    The 60 min set a person up to examine a quarterly roll in the ES. This plays out as a lateral channel 60 points wide.

    The trading fractal is the 30 min. Trades last about 4 to 5 days and we are in trade 6 with a 30 point pull so far. Trade 5 @ 4 days pulled 40 points. 12 trades in a quarter averaging 30 points each is a fair appraisal. I do not know your base for calculating return. If you trade on the 5 min you may have a money management regime that limits application of capital.

    Hypothetically to make 100% a month on a 5,000 per contract capitalization, it would take making 100 points on the combination of 4 trades. You squeek it out in this market with 20 points to spare. candle calls this agressive (the 5,000 thing). I don't red luigi's stuff so i don't know if he is at 5,000 or 20,000 per contract. Sounds like he is at over 20,000 per contract though.

    Since you are laying off profits and making less than this scenario and don't know how to find and review it, you might want to step up the pace of your learning so you can apply your skills to more fruitful settings.
    #23     Aug 12, 2003
  4. PetaDollar

    PetaDollar Moderator

    I could also trade it looking at time and sales, or watching the tape, but I prefer to see the data. There are no secrets about trading pullbacks.

    I am not disagreeing with your point about underlying stocks and sectors. I am just making the further point, that the method, and the way the information is digested that goes into the method, are two different things.

    Each type of info display has its merits and disadvantages. Looking at numbers is great to fit a lot of info in a compact space. Some types of thinkers digest the numbers very well. Charting is nice for visual thinkers but it takes a lot more screen space. And don't forget the squawk box. I guess that's an example of information that could not be charted.
    #24     Aug 12, 2003
  5. shaq48


    I use intraday charts, but I see the wisdom of what Oldtrader is saying everyday...yeah there may be no secrets in buying pullbacks, unless the tide is turning or has turned which will show up in Oldtraders indicators..but maybe not in the intraday chart you are trading. Like I said I use intraday charts for a point of reference..but still rely on tape reading before jumping in. I don't care what support or resistance shows on an intraday chart if a size seller or buyer shows up and needs to complete his order all the lines or indicators on a intraday chart aren't going to stop the move till the size is done. The longer I pursue this business the more I am coming around to Oldtraders way of thinking. Just for reference..I only trade listed stocks and 98% of my trades are daytrades,although I'm not a scalper.
    #25     Aug 12, 2003
  6. monkey


    That's two people in one thread with negative opinions of 5 minute charts. What's wrong with 5 minute charts?
    #26     Aug 12, 2003
  7. Well, that's true. One reason is psychological, I believe. The more you have the more conservative you may become. It's not only the method, but guts as well.
    #27     Aug 13, 2003
  8. Nothing's wrong with 5min charts (or any time duration, for that matter)... as long as you have a positive expectancy methodology and follow it with discipline... as for the utility of using daily charts for intraday trading, some people can and some people can't... much has to do with how comfortable you are with the method i.e. how consistently you execute... having said that, most professional intraday traders place a lot of emphasis on intraday charts in their decision-making...
    #28     Aug 13, 2003
  9. sprstpd


    In your experience, is it more important to key off price movements out of whack with news (i.e., good news = selloff, bad news = rally). Suppose good news causes a rally - would you consider that scenario to have the same significance?
    #29     Aug 13, 2003
  10. Moves out of whack with the news are more important.

    #30     Aug 13, 2003