No, I haven't backtested anything. Just sim trading right now. The doc just further illustrates that KISS and with trend is definetly way to go. First let me say Anek is right that everything is just rehashing of price, so it is best to learn to trade with "naked" charts. So, now please don't anyone beat me for posting following link and mentioning indicators, but prior to this thread my workspace was price and the Bline and 20ema. Buffy is famous for her insane number of indicators. I was just using a 35/10 stoch and a 5/3 stoch and using what they call Slingshots to help find retracements with trend. The thing I am fighting is trying to trade on higher timeframes so I don't get like 30 trades a day. http://www.ensignsoftware.com/tips/tradingtips38.htm
BTW, this is one of the few ET threads I have read with over 100 pages of great info and no negativity, bashing, or egos. It is quite refreshing. I just want to add that I think with DISIPLINE, there are many methods to take money out of the market, but PA and trends has to be the easiest. It is how it was done long before computers and indicators. Thanks again Anek for this thread.
Anek, if you could comment on topic of "trend within trend" topic which is talked about in last doc I posted. It is something I struggle with, using multiple timeframes. A retracement in higher timeframe is a trend in a lower timeframe which can be conflicting if you switch around a lot. For example if higher timeframe isn't showing much in trends, I will move down to a lower timeframe which then shows clearer trends. Of course you then have to change targets/stops. Comments please on whether it is best to just stick to one or if it is ok to change occasionally during the week, etc.
Another question using last doc. In the 5 min chart at the area marked with Black #8, if you were just trading that chart, I would read at that point to be in down trend. But if one looked at 15 min chart at same point #8, then one could read it as a retracement of uptrend. (These aren't best examples, but you get idea) So one timeframe gives buy signal and other gives potential sell. Of course on smaller timeframe would have smaller target/stops. So in addition to last post question on swithing timeframes to use for entries/exits, can you guys comment if anyone blends multiple timeframes together to enhance trading. Edit This probably answers my winded question: "While you may trade the trends on the smaller time frame, waiting for price action to show it is going to move in the same direction as the larger time frame is trading with the trend." "The trend is your friend!"
Hi Far, Good stuff there at that site. Thanks. Its simple trend trading with HH HL !! Its timeless and with correct and proper execution it will make you rich over time. No question !!! Your Timeframe question I will save for Anek to address
Anek, what is it again you use for definition of change in trend, I think it is 2 swing high/lows have to occur? Some places define it when price exceeds last swing. Sorry for all the questions. I have gone from 0 posts in 3 years to 10 in couple days.
Far, you might want to go back near the beginning of this thread and alot of questions should be answered. btw, I am certain it is 2 new HH HL/ LH LL to constitute a new change in trend
That could be just noise. For it to be a complete change of a trend it has to go from a downtrend to an uptrend or vice versa. 2 HHs 2 Hls or 2 LLs 2LHs The exception is if one of the two swings is a double bottom or a double top but the next swing must be a HH/HL or LL/LH. If nothing of that kind, then you stay out and let a clear trend develop. As far as the higher time frame question, it's always useful to trade in the direction of the big picture and to be aware of possible of key levels that can and will produce congestion. It also alerts me if the breakout or breakdown was meaningful enough to merit averaging up on retracements. Anek
I have to tell a familiar story. I started out with KISS method and spent long time going through indicators, cycles, etc. etc. and now journey has come back to beginning. The only system I paid for was 5 years ago, it was tapes of live trading ES using ONLY Keltner channel and one moving average. Just retracements of trends on 1 minute trading with trends on higher timeframes and using S/R of major swings and high/low. I didn't think it could be that easy. Like I said, gone full circle back to KISS! The best traders don't have any super secret methods, they just use: 1) Simple method 2) with Discipline 3) and lots of screen time
Far, You want to use lagging indicators, that's your right and choice. Especially if you can use them properly. NEVERTHELESS, I assure you, without them, I will always be faster than you. Anek