E mini Nasdaq :buy/sell decision making

Discussion in 'Index Futures' started by matrix1955, Mar 20, 2002.

  1. Dear forum's friend,
    why don't talk about how and when we sell and buy contract?

    I get my decision by :
    MA 8 + MA 5 days -> when they turn and/or crossing
    CCI -200 + 200 setted at 10 -> overbought-oversold
    RSI setted at 10 -> idem
    K% setted at 10 -> idem

    I like to know other opinions or do you think it's a secret of Graal?
    I am waiting...
  2. matrix -

    No way to evaluate. You forgot to note the chart timeframe (bar size) and what values you're looking for on RSI and %K
  3. time frame : 1,2,5 minutes
    candlestick:bull/bear engulfing , diapason (two big candle 1 black and second white with same values the third up) , doji line that anticipate the end of trend;
    RSI -> 20 and 85 (oversold and overbougth) and the 50
    crossing to confirm the trend plus related up going minimum;
    divergences + or -
    double minimum
    trend confirmation by 2 moving averages
    basic patterns: flags pennants rectangles triangles
    support trendlines

    and TYPE AND SIZE OF CONTRACTS ON THE QQQ to confirm the volume changes of the E mini contracts.

    Rejected: double maximum, H&S ,fibonacci,Stochastic

    It's enough ?
  4. I don;t know how long you have traded this "system"...But my two cents worth are that candlestick patterns on the "micro" time frames will only confuse rather than clarify...You might want to scale a higher time frame to "filter" your short term trades...There is so much whipsaw and chop in this environment...Add in program trades, hedges between the big SP and the ES and you will quickly see that what appears to be for real can be quite the illusion...

    Nevertheless, if it works for you go with it...But just be aware of the many "cross currents" that do not show up on the short term charts...
  5. I too use Japanese Candlesticks (eminis, qqq, big futures) on 1min, 3min, 10min and daily charts.

    Been using them for many many many years (previously mainly stocks and then gradually I migrated into the index futures and QQQ in 99).

    Secret Grail? Nope...because everybody has heard about Candlesticks...no secret.

    Can you upload an image of a typical chart you normally are looking at?

    I'm always wondering what others have on their computer screens.

    Do you "visually" trade your setups or is it or some of it via a mechanical alert system?

    Just curious...my last post of the night :cool:

    Take care and good luck

    Nihaba Ashi
  6. I've often wondered if it makes any sense to use typical candlestick patterns on an intraday chart. For a daily chart they kinda make sense since there is a natural open and close to the trading day. On a one minute chart for example, it's kind of arbitrary as to when one minute ends and the next begins - shift it by a few seconds and you might get a totally different picture when it comes to two-candle patterns.
  7. stevet


    Candlesticks - a delay in data will also affect a candlestick and since the actions on trading due to a candlestick effect are self reinforcing, the biggest move would occur exactly at the point that would erode the value of the candle

    As most indicators are lagging - since you only see what is forming - when it has formed - you are only really trading dressed up momentum
  8. I dont use mechanical system only visual.
    Candlestick: if you noted I trust in 3 figures only .
    My setting work very well.

    But I note there are'nt other settiing posted....
  9. Hi SicilianTM,

    I can't speak for others that use Japanese Candlesticks on intraday charts...but I'm assuming most have noticed the same thing I've notices...

    That is...the probabilities of intraday candlesticks are much different in comparison to those on daily charts.

    Simply, many patterns on intraday depend more on where the price is closing in relationship to what your choice of indicators (stochastics, PPO, MACD, RSI, CCI, Price Moving Averages and so on).

    In fact, I use candlesticks much differently on intraday than I do on daily charts.

    Therefore, I assume you mentioned this subject because you also notice the difference in their probabilities for follow-thru.

    Also, I don't really understand (maybe I do) your following statement:

    "...arbitrary as to when one minute ends and the next begins - shift it by a few seconds and you might get a totally different picture when it comes to two-candle patterns."

    The same is true for daily, weekly and monthly data. Why? It depends on your data providor.

    I've seen different Open, or High, or Low prices by data providers like PCQuote, Quote.com, Standard & Poors, DialData, eSignal plenty of times.

    For example, what looks like an "Incomplete Dark Cloud Cover" pattern on the daily charts via eSignal may be a "Dark Cloud Cover" pattern by DialData.

    The biggest difference between two data sources I've seen has been between Quote.com and TradeStation Pro (daily numbers and intraday numbers).

    I remember seeing a "completed" candlestick in TS pro to only review the candlestick 15 min laters to see its "slightly" different...scary huh.

    Also, what's odd is that I can download a ASCII file from one intraday data provider and upload that same file into another another program to only see different single candlesticks (minor changes)...once again...scary.

    Note: I have not done the above test in about a year. I was just bored one day and got curious.

    Thus, how reliable your data provider arguably merits it's an important aspect of your JC analysis.

    Nihaba Ashi
  10. matrix955...if it works well...keep using it. Something a lot of beginner traders don't understand.

    What realtime charting program do you use?

    I would see so many beginner traders abandoning a successful trading method...one that actually makes them good money...regardless if its the turtle system, Japanese Candlesticks, Elliot Waves, Fundamental Analysis, Earnings Plays, etc...to continue searching for some holy grail that doesn't exist.

    As for the settings...I think many on other threads have posted what type of indicator settings they use.

    Yet, that's really not that important because some like there's differently for many reasons.

    My favorite stoc setting is 6,5,3. My favorite price moving averages are exponential: 10, 21, 50 and 200...on occassions I'll look at the 100 during parabolic trends.

    My system is mainly visual also but a few pattern alerts are programm codes because several years ago I was consistently missing certain trade setups visually.

    It's also nice to have a few mechanical pattern alerts that sounds an audio alert set on just to lean back in the chair and relax for awhile...watch a little TV or read a good book without worrying I'm going to miss something big.

    Note: These alerts only tell me something is happening and do not enter/exit positions for me...I do that myself.

    Nihaba Ashi
    #10     Mar 21, 2002