Chart Reading - Timeframe

Discussion in 'Technical Analysis' started by tanv, Apr 5, 2020.

  1. I completely agree with you, and never really understood the distinction between reading candles and reading indicators. It's all lagging! From the perspective of the trade you want to take, even T&S is lagging -- once the trade happened, it can't happen again.

    And that's just fine. We have all of inferential statistics to teach us how to take past (i.e., lagging) data to predict future events.

    And to say indicators don't work is questionable. RSI divergences, for example, work really well to show trend changes in certain futures. I still can't trade them, because there's a lot more to trading indicators than using them as static buy/sell signal ... but to say the indicator isn't predictive is just false.
     
    #21     Apr 5, 2020
  2. easymon1

    easymon1

    mr tanv, from what timeframe would you trigger a trade in the case that you had answered the question op'd?
     
    #22     Apr 6, 2020
  3. SunTrader

    SunTrader

    Hear what others have to say but use what works ... for you.

    With a top down approach.
     
    #23     Apr 6, 2020
  4. SunTrader

    SunTrader

    That is because the VIX is a projection ....... for the next 30 days and not just what is happening currently.
     
    #24     Apr 6, 2020
  5. easymon1

    easymon1

    What indicators do you like to use? post a few charts, let us know what you find.

    fwiw, a trader could be alerted to a situation on a longer timeframe chart, say a Daily, 240, etc, and then a trader could standby for action on a more granular timeframe like maybe a 5m or a 1 minute chart. there's an example of this below. the first link has longer timeframe charts, the second has granular 1 minute where a few quick entries from below the blue50ma green20ma could keep things interesting. If you like to trade a few timeframes above this, then it seems the same situation could apply there too, eg Qtr, Mo, Wk, Day, 240m. How do you determine stops? That mnq is turning out to be a nice vehicle for position sizing granularity, instead of that spaz nq.

    https://www.elitetrader.com/et/thre...l-format-right-here-baby.343012/#post-5069098
    https://www.elitetrader.com/et/thre...l-format-right-here-baby.343012/#post-5069167
     
    Last edited: Apr 13, 2020
    #25     Apr 13, 2020