My charting package can't do displacement on a SMA. Is this a common thing or do I just have a really crappy piece of software? In that case I think using the 9SMA is the way to go, is this correct? Would the 9SMA be used for early entry or for re-entry? Thanks for your help. Mark
For those of you trading the ER2, do you avoid the opening of the market or jump right in at the first MACD crossover or ZLC? I start my charts at 7:30 central time (one hour before open). Often I see the market appear to begin trending in one direction almost right from the open, only to reverse without warning and wipe me out. Sometimes I get lucky and am able to trade that fade and scalp a few points or a trend gets going but also sometimes the market just whipsaws. Anyone do any real research on the opening behavior of the ER2 they'd care to share here?
Hello: Calling or trading the open of any market is complex. Intraday retail traders shouldn't in my opinion, be in the market at the open. It took me years to learn to see the market open and trade it profitably. I don't profess to be as generous as T28, but I am willing to point you in the right direction. Currently, markets respond to imbalances. You can learn about market imbalances (meaning overbought/oversold conditions) by studying market breadth (issues advancing vs. issues declining), put/call ratios as well as the imbalances that acrue with market bellweathers (CSCO, IBM, GOOG, etc). In addition, you can see imbalances and if you are observant you can get a feel for how long it takes for these imbalances to resolve. Now that I have a feel for where the market is likely to go early on, I use pivots (daily, weekly and monthly) and Prem to tell me where to get on or off. Hope some of this helps Steve edit: One excellent tool to help understand market imbalances is "Market Profile" as developed by Pete Steidlemeyer.
Calling all traders! Calling all traders! Well folks, this methodology has been battered about, modified, praised, ridiculed and otherwise abused over the past couple of months. Unless I have missed something. This is what I have read on this thread. 1. No one has demonstrated they are able to trade this profitably as presented. (Not that there was ever requirement to do such) 2. New, simple methodologies are quickly siezed upon by those with similar attributes. 3. My personal hand backtrading and IB paper trading have not been positive. BB early on stated it I believe. These type systems do well, untill you give it all back in the whipsaw. Great in trends though! Have I missed something? (Would'nt be the first time.)
Bmwhendrix, I would have to disagree with your statement that this trading system does not work. Imho, the market (ym) just seems very flat. We are at all time highs and I think the market is waiting and watching (marking time) to see what will happen in our crazy world. I still have the macd (9-12-26) and the macd histogram on my computer screen along with 8 sma. And I watch it and trade it everyday. I have found if anything that the macd (9-12-26) shows the balance of where the market is. For example are we above/below the zero line. Should I go long or short? It seems to help. I've had it off but I always end up putting it back on. snarlyjack
Churning, churning, churning.... Keep those doggies churning... arrrrrrrrrrrggghhhhhhhhhhhh. I knew I should have taken this week off.
I would love to hit this market for 100 points long or short, everyday. However, my life seems to be about learning how to trade and taking what the market gives. And I thought this was going to be a walk in the park... But what choice do we have...learn to trade and trade well or get a job and starve... snarlyjack