Discussion in 'Technical Analysis' started by aphexcoil, Sep 4, 2002.

  1. Tech,

    What kind of MA do you use? Simple, Exponential, Weighted, etc etc ... ?

    #41     Sep 7, 2002
  2. Simple. On a 5-minute chart a 5sma seems to hold the price quite well on trends. Since I've been using it I find I stay in trades longer. I used to cut myself off much too quick. Now on those days like Wednesday when QLGC for example runs up 1.35 I don't exit until the 5sma is breached. I was able to pull over a point out of that move where before when I used 1-minute candles I'd been out long ago.
    #42     Sep 7, 2002
  3. I actually use a 4 MA on the ES and, with that (given the right conditions, it is usually good for a point or more.

    However, it generally works well except for false signals, which is why I am on a quest for a more efficient MA that adapts to noise better than an SMA.

    I use the 2 minute chart to trade from and take other signals from the 5 minute chart where appropriate. The one minute chart is worthless to me.

    #43     Sep 7, 2002
  4. The only real problem with a 5-minute chart of course is in fast-moving markets. One candle can span 50,60 cents or more. Then where do you place your stops? I usually place my inital stop just below the 3rd candle's low, but not if it's a 50-cent risk. I suppose you could use an arbitarty fibo retracement level of that long candle, say 50%.

    Also: if you get in after that long candle, you risk missing a great deal of the move.

    Trading plans are always a work in progress, aren't they? :)
    #44     Sep 7, 2002
  5. Candle patterns are absolutely useful. Morning/evening stars and engulfing are the 2 most-reliable patterns I see. The piercing, belthold and harami much less so.
    #45     Sep 7, 2002
  6. I never got into Fibos too much -- probably because I never really understood the concept. I understand they have relationships throughout the universe and nature, but it seems like the harmonics that drive an index are more powerful than the fibos -- and I just don't understand how they are to be used correctly without precise mathematics, which is something I could not really trade real-time.

    I'm smart when I think slow, but I get stupid real-time.

    #46     Sep 7, 2002
  7. I'm not a big fan of fibos either. In fact there are so many which one do you use? 38-50-63 are the most popular but that leaves too many pivot points.

    Good old support and resitance points seem to work as well as anything. If a stock breaks a previous support low I'm gone. The hell with the fibonaccis and any other indicator.
    #47     Sep 7, 2002
  8. bone

    bone ET Sponsor

    You guys say that you can get reliable reads on complex multiple candle patterns on 1 and 2 minute charts? No way, no how on a consistent basis for 3, 4, or 5 candle continuation or reversal patterns when we're talking 1 and 2 minute charts, boys. Dojis and hammers, sure, but certainly not a Rising or Falling Three Methods.
    #48     Sep 7, 2002
  9. I use daily candles on a two month span to find my setups. I then look at 5 min. on a two to five day span to get a feel for support and resistance. I then drop down to one min. candles to enter my trades. After I'm in, I go back to 5 min. to monitor my positions. Needless to say, I can't trade without candles.
    #49     Sep 7, 2002
  10. 1 and 2 minute no way. 5-minute yes.
    #50     Sep 8, 2002