I am new to daytrading, what is the best indicator(s) and time frame to use? (also any supporting software recommended ?)
chi - I guess I will start this off by saying this is no perfect indicator and/or timeframe. Part of your learning experience / tuition is going to be finding what works for you. Keep in mind that all indicators are lagging.... Good luck!
So, if indicator is lagging and not recommended, then, there is just - Price. How do you trade based on price? Momentum? Please help...! I really want to learn from a successful daytrader--PLEASE ??
chi - take some time and go thru these forums. I am not saying that indicator(s) are bad, but they are not a solve all. Expect them to fail. It's not going to hurt to learn 2-3 and then learn them inside and out. Popular ones appears to be Stochastics, MACD, RSI... among many others. Some guys have 20 indicators on their screen and analyze that way. Personally that is way too much for me and would rather know a couple things inside and out vs. kind of knowing 20. And you have traders that simply analyze price and the current action, tape readers, etc. Those guys are around here too. If you want to use this forum properly, you are going to have to spend many hours reading the posts that are already here. Most of your questions have been asked, you just need to find them. It's overwhelming at first, but now that I have been here a little while myself, it never fails to see the 'I am new help!' threads that just ignored b/c we see them weekly.
Hi Chi, I use to trade using three time frames, 13 min, 7 min and 3 min. Traded in the 7 min, in the trend defined by the 13 min, 50CCI. I then found the only indicator that is not laging as far as I know. It is provided by www.tradingpro.com. It did work from me. I follow that Indicator, and trading system. I'm testing support and resistance levels adding to Trading Pro indicator, Market Profiling. It has worked great for me in the last months. Check my Journay if you will. http://www.elitetrader.com/vb/showthread.php?s=&threadid=70418 If you are goind to trade manually, no matter what indicator you will follow, I would suggest you read some Trading Phsycology books, like Mark Douglas - Trading in the Zone.pdf Good luck with your research !
remember not to base your decision soley on one indicator, and remember that no indicator is free money. Try to learn a couple and integrate that with price action, analysis of charts and learn some tape reading if you are going to position trade.
As few indicators a possible. The best traders here probably use no indicators or a couple of emas. Starting off day trading try looking at 3m or 5m charts (start with 5 but some things seem to work better on 3) with a couple of emas on them (try to find the emas that price comes back to and then leaves in a trend -- one ema for shallow retracements, the other for deeper pauses where the trend might change). For stocks use volume as well, for forex don't, for futures it depends. Draw lines across the chart where price has previously stopped at highs and lows (the more the better) and try to understand what happens when they are reached and what the probability of reversal or continuation is. Try to figure out how you would trade these various pauses and what stops and targets you might use. As an indication of why you should keep it simple read this thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=76477&perpage=6&pagenumber=1
Dan - I glanced at that website, but by this comment you are saying you have found the first and only indicator out there that uses past information to predict the future consistently. Perhaps an indicator or 2 inside of a trading system with rules and such is a different story, but to say this is an indicator that is not lagging would mean it foresees into the future somehow... The point being all indicators use information that already happened to attempt to provide an idea of where the future is going. Nothing like trying to drive forward by only looking at your rear view mirror. I hope that makes sense, esp for our newbie trader here as he goes out looking for the holy grail.
CCI can lead price if used as Woodie does, but MACD is king, the only indicator that defines trend (crossovers) and momentum (zero line)