Bored out of my gourd....@ Midnight...Your trading discipline is what makes u successful...Dozens of systems will make money. Emotions kill most of us....my philosophy is trade what is happening on the screen, not anywhere else...no external info allowed...if I am wrong, stop is nearby. Breakeven is good. Profit is better. 3 or 4 point stop is Blessing..3 or 4 point profit is goldmine...Confidence in a proven system is something we don't talk about much...discipline is the buzz word.....Confidence in system comes first. Try discipline without that confidence...It can't happen..400 charts give me confidence.....I once thought outside the box was where I had to think in this business. I was wrong....Emotional Control with a good system.....the system wins or loses points...You only create/choose the system.
There was microscopic divergence after ADX went above 30 on this drop down. On the 10:20 bar I had Chaik. Osc. at -5.73. And on 10:45 bar it was -5.00. The 10:45 bar was the LOD so far. I couldn't see the divergence with my eye, so I didn't start the setup which would've gone long at start of 10:55 bar around 1000.00. Hopefully it'll pull back and show a little clearer divergence.
Here's one where on my ES charts I was showing the ADX over 30 at 1025a and the Chaikin Money Flow (don't have regular Chaikin) well into DV at the 1055a bar. FYI only. jd
no_pm_please, couple of questions, a. the system only uses SP data from 9:30 am till 4:15 pm EDT, have you looked at night/premarket data for additional decision support? b. what datafeed/charting are you using for your posted charts earlier and for trading? Great thread, clear objectives and action plan. Thanks for starting it and following through.
a. I don't look at after hours prices because of the lack of volume. I'm not trying to incorporate support and resistance trading so the overnite high/low don't have any influence on my method. My only interest in after hours is the size and direction of the opening gap and whether it gets filled (possibly as a future filter to avoid trend days). b. On page 1, second post I have my setup. I use eSignal as the datafeed and Tradestation 2000i as the charting package. Hopefully we'll get some clear signals soon. If not, I'll start a second journal with my other method. At least it's been having some signals.
The summer doldrums are affecting a lot of us. I hope it's not getting you down, no pm. Much as I'm looking forward to more examples of this method in action, I'm sure that we're all eager to see the other method as well. Your ability to present clear and concise guidelines is outstanding. MarkB
How many bars of separation do you use to determine if there is divergence? The Chaikin Oscillator (CO) is very sensitive and it clearly shows difference even between two subsequent bars. This is not so for other oscillators (stochastics, MACD). Incidentally I did spot very clear divergence in CO using the ES data around 11:50 AM EST.
Reminds me of a bollinger band -RSI method I used in the past. Unfortunately , I had to stop trading it due to many false signals. However I must say your unorthodox approach with adx is very interesting. Think I 'll take me countertrend method off the shelf and dust it off and start tweaking it again....thanks for the insight and keep up the good work... Nick in NY
I don't have any rule. I guess one bar would be enough. This morning I thought I'd get a short signal, but the ADX went over 30 after price had peaked, so there wasn't any opportunity. Here's the chart from early today. I was getting excited when I saw pretty clear divergence between 9:00 and 9:10. Unfortunately ADX didn't indicate much of a trend at that time.