Anybody using a variation of the floor trader method ? What I like to use is following : Lets take a 10EMA , 20 EMA , RSI (20) Buy setup: 10EMA above 20 EMA , RSI (20) above 50% = Trend up Then look for a pullback of price to the 20EMA, the above conditions are still met. This is a good entry point in an uptrend. But you have to judge the strength of the trend and this is done with the spread of the MA´s, e.g. wide spread = strong trend, etc. and the RSI which has to be 50%+. Thus, the strength of the trend decides, if it is worth to enter ! Scaling in is of advantage with this kind of entry, in order to see how price starts to behave at the 20EMA. If you are interested in stops and exits, please look at the orginal "Floor Trader Method" at the trading naked website. Do you have variations as well ? Cheers Sundog
I feel sorry, that you are so sarcastic, but that is the name of the original method and I did not invent it. So, please do a search on ET for the "Floor Trader Method" or check out the trading-naked website.
I was wondering the same thing, how does a floor trader know where the MA and the RSI are @ any given moment. The floor traders I know who are still @ it and successful are spread traders. In the past the ones who had been successful either traded spreads or they bought at 3 and sold at 4, if there was no one to sell to at 4 they got out at 3 and if the three's where gone they dumped it fast at 2. Simple as that. Clever marketing though, people always think the floor has something they dont.
That's not the floor trader method FTM usually refers to continuation trades that exhibit a nice V shape and vice versa for shorts ^ Price pulls back in a trend and takes a breather then takes off again forming a V shape, traditionally you initiate the trade as it breaks the high of the left arm of the V Floor traders swear by the shape of the V and say the more clearly it is formed the better the trade outcome
Just the normal stuff anyone would play with, anticipating the break of the arm if you get a nice floor (support) at the bottom of the V etc You could get some nice scalps using that floor as your stop (and trigger) and getting in so close to it
Thank you, do mean by break of the arm, sth. like break of a trendline as a confirmation for trend continuation ?
Yes. indeed I employed the use of sarcasm. I'm familiar with the method and the t-n website. It was very generous of NQoos to have that library available for all to use free of charge. Depending on the instrument I'm trading, the timeline and market conditions I use a variety of methods from measured moves (clone a reversal extreme high or low bar and turn it sideways 90 degrees horizontally. This price bar has now become a time bar. If it's a high, it will show the next low.) square root increments of highs or lows, breakouts from channels equal to the height of the channel. Time cycles from high or lows that clusterabout 195 minutes later (3.25 hours later) add 3 hours and 15 minutes to any daily high or low and see what happens. And last but not least planetary flux lines. So aren't you glad you have your method instead of this esoteric-geometric crap I use?