Hello, I am looking for a Momentum Trading Strategy for short spikes - currently I use the following indicators: Entry: Momentum - when the upper band will crossed (will be calculated dynamically) when there is a massive volume increase (must be confirmed in 2 minutes) when the exponential MA of 10 min is above the 20 min exp. MA Exit: When the 10 min exp. MA crosses the 20 min exp. MA (going down) Please let know your thoughts on this rules - do you have any recommendations which indicators I can add in this strategy?
These indicators you're looking for will be directed at what money? (a) The milk money (b) The rent money (c) The college money for your kids Don't do it. Slow down and start from basic-basic
Stop day-trading. Avoid entries off MA cross-overs. Avoid closing trades off MA cross-overs. Don't put trust in volume. I'm not sorry to be so negative but I think you need it.
I'm also sorry to sound negative, but anyone who does fast-moving day-trading can only agree with all the above. (And particularly: don't imagine you'll construct a profitable system based on entering trades on the basis of a moving average crossover: it's not going to happen. Moving averages can have their uses but that isn't one of them. ) It wouldn't be a kindness to you, to do that: what would actually be much more helpful would be a long, detailed explanation of the fallacy of trying to "confirm" indicator signals with additional indicators as a basis for entering trades. But that's a job for textbooks (as opposed to online "information"), not a job for brief forum-posting. You need a different approach, not different/additional indicators.
Of course I am going to join the others in response. It would be easier to get a college degree from Harvard than day trading. You have to spend so much time and watch screen for min of 10,000 hours and learn charting till your mind don't even need to think what is going on so you can compete with those who have. First you have to compete against yourself on being able to have balance in your life, self control-patience and then learning skills, then there is so much reading and memorizing of what does not work for you and what you understand as far as charting. Indicators comes after learning how to be a chartists as they make it faster to identify setups IMHO, but I am very good at reading charts, I know where most of new traders are getting in and where they will be wrong and feed them the other sides of their trades, and knowledge and never stop learning and then programming to back test on huge amounts of data. Crossovers can give trend but often times later in trend. Xela has a nice list of books, go to upper "Search" and use it. I been trading four decades and I spend much time reading using Search. Good luck.
Doesn't look like you're satisfied with any of the responses. Lighten up amigo, its a tough road and nobody here wants you to perish. Your wife? Her opinion? Ask Mike Tyson to go for real with you in the ring 3 rounds. Then x that pain by 100. that's where you're going without weaponry, tools or smarts. Then comes your wife when you've lost it all. She'll leave you, take the kids and leave you with a broken spine in a gutter. The safest way to double your money is to fold it over once and put it in your pocket Only one woman gambler here at ET? Why? Woman's total instinct for gambling is satisfied by marriage. No wife can endure a gambling husband, unless he is a steady winner. In most betting shops you will see three windows marked "Bet Here," but only one window with the legend "Pay Out." In the case of an earthquake hitting Las Vegas, be sure to go straight to the Keno Lounge. Nothing ever gets hit there A dollar picked up in the road is more satisfaction to you than the ninety and nine which you had to work for, and money won in stocks snuggles into your heart in the same way. The gambling known as business looks with austere disfavor upon the business known as gambling.
There are ... but we're not people intending to enter/exit trades on the basis of a moving average crossover, nor are we trying to "confirm" indicator signals by additional indicator combinations (which is typically - and especially in less-than-expert hands - a way of increasing the win-rate while also reducing the overall profit-potential). Nobody said it isn't possible to earn a living from intraday trading, but with no disrespect to him at all, that doesn't make it an appropriate avenue for the OP, on the kind of basis he's asking about.
I remember a noob's post that went something like, "Learning price TA would take too long. You can learn moving averages in 1 day". (My first exposure to TA involved mutual funds and the "20 day MA cross". It was at a time when that concept worked particularly well. And if we had the same "market player makeup environment" today, it would probably work just as well now. However there is lots, LOTS more to it as we know.)