Day-Trading 2.0 for small traders

History has a way of repeating itself

 

I may be repeating myself...

It is simple to lift a weight.

It is relatively easy to lift 10 lbs.

Many can lift 50 lbs.

Not too many can lift 500 lbs.

Lifting is simple, ease is a function of your strength and the weight.

 

WHO IS IN CONTROL: BUYERS OR SELLERS?

I asked jjrvat for permission to discuss CONTROL in his thread.

I developed a simple way to determine if the buyers or sellers are in control.

I use the current and previous candle's midpoints.

If the price is ABOVE both midpoints then the BUYERS are in control.

If the price is BELOW both midpoints then the SELLERS are in control.

If the price is BETWEEIN both midpoints then NO ONE is in control.

The previous midpoint has more weight than the current midpoint.

To prove this, just plot the previous midpoint on your chart and see what would have if you traded in the direction of the candle color at the midpoint. More times than not you win.

So if you add CONTROL after determining the MACRO DIRECTION, you'll see just how profitable this tool is.

CONTROL works on any interval.

In the TradeStation charts I posted previously, the top row of dots indicate who is in control.

In the MT4 chart below, notice I have my DIGITAL COMPASS displaying the previous midpoint.



In the MT4 chart below, the previous midpoints are the MAGENTA dots, and the current midpoints are the AQUA dots.

 

Now it is easy to see who is in control.

 

Hey TRO, outstanding work as always!!

i have been more than fortunate with scalping but the same not to be true with automated trading where i lose all of mine hard earned scalping profits but in any rate this is the setup i use which now based on jirvat’s concept, zig zag fib (programmed as courtesy by Dimicron) and simple Bollinger band on the bottom....is there anything iam missing in your opinion that could make this setup more efficient?

 

Wrote a DIGITAL COMPASS to tell me if the waves are higher/lower.

 

I can't intelligently comment on it unless you post your entry/exit criteria.

 

I have been following this thread along with AHG thread..best on ET

1. HMA's - whats your seting. is the HMA based on close of the bar.

2. HMA 25 is it best to trade AAPL,NQ,ES and FESX

3. I also trying to trade FESX which starts at 1 a.m central time in US. will be trading for 2 hours. what are other indexes/futures which i can trade during this time.

is there a site like econoday where i can see what news are coming out from germany and europe.

 

HI RN,

nice chart. is it drawn in QT or tradestation. how do you mark your HH and LL. thanks

 

Im in tokyo here , hence the name and so Europe is a good fit for me too. Have you considered FTSE and short stirling on LIFFE? If your already trading on Eurex then the DAX is good. You just have to watch it though, cause it bites!!! It all depends on the individual but I find that Eurostoxx can be a bit too deep, especially if you are a small lot trader.
The CAC (french division of Liffe) is also good, however my broker doesnt offer it.