Anyone trade the eminis solely using Price action from a 1 or 3 minute Chart ??

Discussion in 'Index Futures' started by jimmygold, Jul 28, 2007.

  1. No Indicators, No Pivot Points, No S/R, No bollinger bands, No Time and Sales, etc..etc..
    but just trading Setups based purely on observing Price action only on a 1 or 3 minute candlestick chart ??

    And does anyone ever observe and have trade entry setups solely based on high accelerating WRBs ?? (wide range bodies)
    Where you would catch and ride the tidal wave as it appears , so to speak, on the first pause or slight pullback ??
    This seems much better than trying to GUESS or anticipate where the next "wave" will appear , right ? Of course so !!
    Just like many Hammers and Shooting star patterns are guilty of doing when they wrongly entice the inexperienced retail trader to jump in too soon . Essentially making it a guessing game, oh so too often!!!

    To me I say just let the Market tell you plain in front of your eyes what it is doing . And act accordingly in a timely and nimble manner. Just react dont guess ! Indicators can distort the Truth and they can give you a false comfort that you are somehow getting a advantageous head start before everyone else gets in the play !!
  2. NOISY


    tried to trade on tape reading alone within those time intervals and failed miserably.

    typical indicators packaged with most charting softwares add more confusion to the decision making process.

    good luck.
  3. js11222


    The whole question comes down to one's having visual acuity and feeling for the ebb and flow of market action. It helps to understand when looking at a chart which side is on the offensive/defensive.

    If you happen to have those qualities any chart will do with or without indicators, but specifically a 1 or 3 minute chart with volume study is a very effective and clear setup for daytrading.

    I scalp Crude and rely on the 15 sec chart for entries but glance at 1 and 3 min charts with volume for perspective.

    For daytrading pay particular attention to quiet periods with little pullbacks after a big volume run. They invariably lead to more movement in the original direction.
    We had many of these setups in the indices in the last few days. The higher the participation, the better the charts work.

    TA is beautiful.
  4. bighog

    bighog Guest

    This is one of the better threads and no-nonsense use of price action i seen in ET in a long time. Just change the charts to bar charts and 5 minute so not to trade noise (i want the swings, not ticks) drop the volume watching intrabar because price tells "ALL" and we all would be good to go. :) (watching price alone is all you need since price is the CAUSE of getting the players attention).

    KISS is the answer, add good money management and the world is your oyster.

    PS, but indeed i use support/resist spots etc, have pivot points in the head also. i mean we use those areas as the cause of fear or greed to get in step with the thinking and reactions of the BIGS when price does what price will do. Put yourself in their shoes, do not follow the small specs and under financed small locals. HOG OUT !!!
  5. dozu888


    tape reading is the only way to trade

    oops.... maybe flames coming.
  6. I love myself some price action too :D
  7. I use a naked hourly chart and usually find 2 or 3 setups a day, which is all I need. The less noise the better. I don't scalp for a couple of ticks. That's the business of floor traders and way too nerve-racking for me.
  8. forexfox


    ... and if any new trader wonders how to trade the charts without using any indicators...

    ... it is discretionary and comes from experience ONLY - with mentor or without...

    ... but one can pick up bits and pieces on how to read the charts without indicators in Joe Ross books, TA book by edwards and magee, reading posts of experienced traders such as anekdoten, bighog, austinp, etc...

    ...throw in a 'trading in the zone' book for the right psychological setup...

    ... and be ready to watch and trade with REAL MONEY (but as small as possible) charts every day for as long as it takes (read: months or years)... free lunch here...

    good luck
  9. I've been working on developing an auto-trading system for a long time and have found that what you mentioned is all that really matters when it comes to trading from a chart. Indicators don't work for scalping and never will. I'm still tweaking a system to trade the NQ that is pretty much based on volume and bar size. I will post the results on here once I finally get it completed.
  10. That's typically the way to go.
    #10     May 20, 2008