Day-Trading 2.0 for small traders

Discussion in 'Trading' started by jjrvat, Jan 5, 2008.

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  1. Oh wait are you using advance/decline?

    I can't get that to work for some reason. I don't know if my data source (OEC) doesn't give that data or what. When I load advance/decline I just get a diagonal line that always goes up at the same angle regardless of where I scroll on the chart.
     
    #801     Jul 24, 2008
  2. toucan

    toucan

    i use tradestation charting and it has 2 symbols .... one for advancing issues and one for declining issues... that is what is shown on my chart...

    toucan
     
    #802     Jul 24, 2008
  3. ddoonie

    ddoonie

    Dont know if you guys traded today, but the ES/Spy's bled!

    LH and LL all day = profit.

    [​IMG]
     
    #803     Jul 24, 2008
  4. Have you ever tried "no indicator?" Maybe take a breather for a while and just watch a naked chart.
    Not being critical, just a thought.
    Keep after it.
     
    #804     Jul 24, 2008
  5. Even someone as bad at trading as me can make (a little) money today!
     
    #805     Jul 24, 2008
  6. ammo

    ammo

    if you draw an upper and lower trendline on your chart it would give you more confidence on your entry and exit points,and you may have just stayed short as long as we didn't break the upper trendline,trading in hindsight is so much easier
     
    #806     Jul 25, 2008
  7. jjrvat

    jjrvat

    etfswingtrade, ammo, ddoonie, Bingoking, bilbod, toucan, BlowFish, umitd

    Thanks for your comments

    bilbod

    Excellent post !!!
    (http://www.elitetrader.com/vb/showthread.php?s=&threadid=113456&perpage=6&pagenumber=129)

    What are your views on time charts? I am use to the 5min chart, and is why i use it for my entries. I see that you all use tick/volume charts, which makes sense to me. I'm watching a 4000 tick chart, secondary confirmation i guess..( ddoonie)

    Time charts have a unique feature over all other form of charts: the obvious control of time. Controlling the frequency in which each bar is formed it is very helpful, it allows to have a time reference to make decisions, it tells a trader when to watch the screen, when it’s too late to entry and when to get ready to pull the trigger among other things.

    These characteristics are especially important if you are “scalping” or trading fast timeframes. However and as you probably know, there is always a tradeoff when trading: in this case, bouncy charts, more whipsaws, lots of choppy (because of the nature of time charts, bars are plotted regardless of volume size or # trades) and missing some trades (most of them if you are using a bad time chart for your instrument) because of the size of the trigger bar can make a very bad entry.

    In my opinion, the higher the timeframe the less impact these bad factors your trading plan will have. Again, the “fundamentalist” (long term traders) and investors are right and that’s why, “ceteris paribus”, trading daily, weekly or monthly charts are by far the best option.

    Sometimes time charts can be poor for trading analysis but good enough as 2nd timeframe trigger when using multiple timeframes in slow charts. In general as a rough reference (it depends on the instrument) the chart below summarize my opinion on time charts.

    [​IMG]

    TIP: As you have noticed Heiken-ashi will help a lot smoothing time charts, but don’t forget to set the parameters of the current candle to the real price (and not HA candle formula), otherwise you are not going to get valid information to pull the trigger

    Ironfist,

    I have been reading your comments the last few weeks. IMHO, your wave analysis has improved a lot which is really good, but you seem to be stuck in that level of analysis. Among others, you are not paying attention to time, price and macro direction, your entries and exits are too rigid for the instrument you are using, and as I mentioned before you do not fully comprehend the extend of your timeframe (as ddoonie pointed out 10 tick drawdown is peanuts if you are intending to catch all 100 ticks).

    Bingoking has a very good idea (Have you ever tried "no indicator?") trading naked. I propose you an idea that may help you and can improve the content of this thread: A live analysis exercise. Pick an instrument and timeframe slow enough to post live charts and comments but fast enough to have intraday position. I’ll post a live chart based on that for the discussion and we will try to build upon to find some answer for your concerns. Of course the idea is everybody can comment or lurk and that you and only you find the “right” option for your PBP. Let me know if you want so I can think about details.

    jjrvat
     
    #807     Jul 25, 2008
  8. amitman

    amitman

    Welcome back JJvrat good to see you're back!
    anyway, you might want to take a look of the new journal "The price action journal" which was opened recently. Using it along with your PBP can give tremendous results and this journal really helped me improve my PBP.
    http://www.elitetrader.com/vb/showthread.php?s=&threadid=132170
     
    #808     Jul 25, 2008
  9. greddy

    greddy

    jjrvat,

    I have read the journal many times, and learn something new every time.

    Recently I found on my hard drive a trading session
    I had saved from a chat room that mainly trades the YM.

    The moderator used a 2 min, 1min, 50/89 tick, and 5 min.
    The charts are tiny so that you really can't see the waves.

    I watched in horror since I was trying to trade using this
    setup up until not long ago.Without the ability to look at the overall direction, and structure of waves, I was totally lost.

    But then, there are very few people out there that teaches
    price action for obvious reasons. It would not be profitable
    if you don't sell voodoo garbage, strategies, etc.

    Thanks for starting this journal as I think you are
    helping out any trader who take the time to read the priceless
    information.
     
    #809     Jul 25, 2008
  10. I would do that. Am I allowed to have volume on the chart? I have no idea how to read volume. I've read a thousand posts here where people show how volume analysis impacts their price analysis and decisions but I never understand any of it. Some people say "increasing volume means the trend is strengthening!" and other people say "volume was increasing so I took the opposite side of the trade cuz I knew it was going to reverse!" And when I look at volume on my charts, I don't see any meaningful patterns or anything. There are some random spikes but sometimes they occur at the beginning, middle, or ends of trends so I haven't gotten any useful info from them. I also don't understand how people can draw on their charts "increasing volume" or "decreasing volume." It's always random distribution of highs and lows.

    So maybe in this exercise we can talk about volume, too.
     
    #810     Jul 25, 2008
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