Belgian ales are Great !!...right up there with Guinness. maybe better. Today I did something for the first time, that Yoohoo told us to do a long time ago. I dont know if you guys do this as a standard set up.... but when I did... it was like a blind man being able to see clear for the first time ! I put up 4 charts on the screen. with CCI,40 wma,bollinger bands.... and saw everything right there all at once. I'm shocked at what a difference it makes. 1 min/5 min/15 min/ 30 min/ and 1 hr. (occasionally looking at 3 hr and daily) it was like plugging in the christmas tree lights.and my eye balls could see everything. do you set up your screen this way? I'll never trade again without doing the whole set up this way. Have a good weekend. did anyone catch my last post a week ago forecasting a drop to 15685 ?
I have 1min (big one) / 2 min/ 3 min /5 min / 1H and 4H on with CCI18, Stoch 14/5/3 and 40 WMA on all charts. I also have a 1 min fut chart with volume. And yes it helps a lot, it's probably one of the best advices one can give to a beginning trader having several timeframes on at the same time. I started out a bit differently however: used to have 15 min and 30 min too when I was only trading 5 min (no 2/3 min then) and did not have lower timeframes but found those last ones to be overkill when I started trading 1 min. It is a good way to start though, that way you slow things a bit down. I had bollinger bands at one time, and from time to time they gave canny reversal points, however this too made this a bit too much to watch. I still find overall that I mainly rely on price action, and probably use indicators not enough and am not really (too little ?) watching them much consciously. When I'm am fully adapted to the speed of the 1 min time-frame (I still find I am too slow on occasions) I hope to be using them to their full extent.
The multiple time frames approach is the tennent of dynamic technical analysis by phillipe cahen. He was head trader at socgen. Anyhoo, DTAFM as its called is really worth looking at if you haven't already. I would say its one of the three best books on trading available. As such, my major time is 4hr, control time is 1hr/30min/15min (depending on which BB's the price action is adhering to) and the 5 minute as my signal/warning timeframe. After changing through many many systems in the past few years, this is by far the most logical, I've found. But, alas my battle is not technical but psychological.
There is one idea I would like to share regarding BBand, EMA 25~30, std 1.76; Do show great overbuy or oversale signals, I guess WITH aggressive indicators in 1min TF, one could use this to pick reversals; but I agree with CV, it's a handful, and if you know your indicators, you could properly see the same thing express by the indicators instead of PA from the BBand. Also, those signals are likely a start of a retacement, instead of a continous signal, and off the top of my head I would say PA around TL gives a better representation on the later. Anyhow I use 1min/5min/30min/daily; compare the 30min TF and 60 min TF on a SIF that I do, the smaller TF gives some extra resolution that I find useful, it's better than looking (and taking a guess) at candle sticks on 60min TF, I ain't no rice trader from anicent japan have a drink on me, CF..
THOUGHT FOR THE DAY: TA WORKS - BUT LEARNING HOW HURTS! When I first mentioned the 600 pip move we were about to ride I said it was a no-brainer. It turned out to be 610 pips - not bad for a 3 week projection. This is just the same TA as on the 1 hr chart. I wet my pants when I read of these university studies that prove TA doesn't work. They have such tunnel vision they can't see it's their poor TA skills that don't work. If they put the same effort into their degree studies as they put into developing their TA skills they would get thrown out of the university after their 1st year. Honing your TA skills will get require you to go through the pain barrier mentally, physically and emotionally. You'll have to face and overcome your personal demons. If you want to read the 1 min chart well and read the daily just as proficiently - it will hurt. But when you make the breakthrough it's a no-brainer. Hope some of you realised the pressure was all upwards so longs were the primary direction. Clever traders would catch the short counter trend trades as well.
good to have you back Yoohoo, hope you enjoyed your trip. I guess a lot of people expect trading to be easy (they call it "easy money" for something), putting a decent effort into it and that it might take months of screentime to learn and make it work seems beyond them. So their easy conclusion is that it doesn't work ...
welcome back Y. take one minute to breathe....and here's my first question.... do you now, see euro rising back up along the same up channel that its been riding ?. trendline looks like it sits at the bottom of the uptrend channel right now at 15700. the daily cci looked (at fridays close) like its aproaching a bottom. but I wonder if it is there yet.