Hi all, I have two very quick questions that I'm sure somebody can help me with. First: When analyzing charts(1min, 5min, 60min) and technical indicators, do you normally include all price data on the chart(including premarket and post market trades)? For example, during the first 30minutes of the trading day, technical indicators(ie.stochastic,etc.) will of course give different readings, with premarket/postmarket data included. Second: Any opinions on this chatroom I saw called Millennium-traders.com Do they trade their own picks? is it a fraud type thing? Thanks for the help
I observe Globex, in regard to the 1 and 5 min, and run two sets of charts. Pit and All Session. I am particularly interested in S/R generated by the overnight sessions. As for conflicting indicators, depending on what is occurring in the Pit at the open, I will weight one more heavily than the other. I hope that is not too vague. I have learned from lenghty observation how my indicators relate to one another.
tymjr, thanks for the response, I appreciate it. Can anyone else help me with my second question? or elaborate on the first? Thank you all...
First: Include premarket/postmarket data. It's market activity; why should it be ignored? The activity in pre/post explains the gaps up/down and wild indicator spikes that those without pre/post data see at the start of regular session. Important support/resistance levels are established and reinforced in pre/post, and interday channel trendlines are confirmed. Second: No opinion. (No time spent in chatrooms).
It probably doesnt matter if you include pre/post market data or not, because BS like stoch. simply dont work. For intraday plays it's better to look at price/volume: How the stock moves relative to futures? How the stock moves around certain res/sup levels? Are there signs of capitulation at the end of a trend? What is the profit potential, comparing the hi/lo of the day to it's average intraday range over the past sessions? Where is a reasonable spot to set a stop? Is profit potential/risk ratio large enough to take on this trade? Once there are a set of rules based on the above questions, you can play the numbers game and let probability play itself out.