Discussion in 'Strategy Development' started by Norm, Sep 16, 2005.
For scalping, what are some good indicators that a stock is about to go up or down?
Pretty easy actually.
If I go long --> stock goes down
If I go short --> stock goes up
does are solid indicator u can never go wrong
1.) Learn some candlestick reversal patterns.
2.) Trade when the candlestick pattern is confirmed by one or more divergence indicators. (RSI or Accumulation/Distribution line, for example)
That will improve your odds by a slight margin.
I've been using a modified 2b pattern. Its the only thing right now that gives me a slight edge.
I have to second that advice. I just spend 2 years searching for that answer on my own and arrived at the exact same conclusion.
Only thing i can add is... cci is another good divergence indicator.
For the stock scalping game, I preferred NYSE stocks... play the big caps and watch for a slight lag relative to the S&P tick chart...
The edge is getting in on NYSE stocks which are lagging a few seconds behind moves in the S&Ps...
I pay attention to the S&P's and I look at retracements. For example, if a stock has retraced more than 50% of the initial move it is a safe bet it will go back to its original point. I also pay attention to supports and resistances.
Use "The Trend".
If you dunno it yet, do a search on ET.
candle trader has hit the nail on the head..
slower moving stocks vs the futures e-mini or s and p is one way another way is get a sqwauk box service with a pumped up anouncer screaming.. GOLDMAN SACHS IS SELLING.. hes selling hes got more to sell hes dumping another 100 cars.. etc.. and we know to go short.. also .. SIZE is what most of my scalps are done on ... if you see something like 10000K on the sell side of say (GS) as 118.51 i will be shorting my 1000 lot at 118.50
= ) Hope that helps
Price goes to size .. but size scares the other side.
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