Hello bathrobe, I understood wery well what you ment. But it may be that I misuse them or something else? How to get it? This is the question.
Volume is for "LOOKING BACK" to see what just happened. Think about that real hard and ask yourself what good does it do you. PRICE alone is the whole game in a nutshell. With time you will come to trade with price alone because everything is a derivative of price. Volume follows price and attracts others to the previous price movement. Following price with all sorts of doodad's is nothing more than a bunch of mucus to give you reasons to NOT take the trade because this or that is not in line with the mishmosh in your indicators. In time winning daytraders can decipher the price action alone and thats all that is needed. I could convince you further but surely some will say i am missing a valuable something. Well to each their own. I know this for a fact.....KISS rules all else and what is any more simple that just watching price action and assuming from price alone what the players are looking at? There is no mystery to this game of odds if you do not intellectualize it.
To be completely honest, I plot S/R Lines on my charts to see when the levels get hit and if I had the balls I would trade using them because I see for instance the emini SandP rally up to support exaxtly then large volume selling comes in and it will drop exactly to resistance, sideways on decreased volume for awhile then through resistance, and on to maybe more macro S/R levels. After typing this I think I may initiate S/R level trades. Also, I see the 200 period ema used as S/R enough where it also could be used as a place to initiate trades. However take the advice of people who have traded of the S/R levels, I simply see them used often enough to warrant a deeper look.
bathrobe You indeed should pay attention to support and resist levels, everyone else is. Think of support and resist levels in the light of what others will be thinking in regards to FEAR & GREED, the most basic of human needs and desires. Should you FIGHT or FLIGHT when a S/R level is tested, passed, false breakout etc? When a level is touched it pings all the traders brains that are looking at that level. It has to if they are worth their pay to keep the chair warm. Lets say price reaches a resist level. Many will see that as a possible continuation level and might be looking to ADD-ON at that level in hopes for follow through. Still others might look at said level as new entry spot. On the other side of the thinking is the FEAR factor from the shorts that were FEARFUL of price hitting that level. If the GREED of the new buyers and the FEAR of the shorts covering combined drive price above the breakout point of the level you should have a free trade because the breakout will allow you a few ticks to play with. If price starts to slow the advance and fall back you try to save a tick or so to pay for commish. A scratch in my book is a winner. Do not FEAR FALSE breakouts, they are normal, learn how to trade them, you must do that because breakouts are where the money is made. Aside from breakout trading, the rest is just pretending ..
epetrov Read Palatine's post over and over, with special attention to #3. Now I'm not saying those indicators are not very helpful to manny experienced traders. But for new traders they appear to work much better because of the hindsite nature rather than how they really work or benefit you on the HARD RIGHT EDGE when trading real time. I believe this is the very best 1st post by anyone I have ever seen on ET. Great post Palatine and welcome to ET. Looking forward to more of your posts. Nutsneal
epetrov, you might be very close to the breakthru you seek - might just need a little fine tuning. Or you might be using a method that cannot be corrected - it needs abandoned. Who knows? Post a few charts showing why you entered the trade and lets see where and why it went wrong. That will help me to understand both how you see the market and what you understand. I may then be able to offer some suggestions. There are many different styles that work - lets see how close you are to one of them. I'd perfer to fine tune what you do than say bin it and start again with this or that... but it might be the bin that's best!
i read the other post u made on randomness and the start of this thread, 4 1/2 yrs at TA and many books, you problem might be that you think one day you will get it, u never will, its not get-able,you may be trying too hard to see something thats not there,there is no time machine or crystal ball that will let u know whats going to happen in the future,those indicators only give you maybes,maybe it'll go up;or down;,u seem very rigid like you will bet on sure thing,maybe loosen up a little and bet on maybe it will go up or down, 65% chance it will hit trendline not 100 %,so when u trade after you have studied the mrkt,there is the next step,trading, even if u had a crystal ball,and knew where the mrkt was headed u might jump out at the slightest pullback or the smallest profit,so u must actually trade to learn this trading profession, trade 1 lots and get out for 1 tick profit or loss,master that and now u know u cant lose,now trade 1 lots and let the profit ride a little longer,and maybe a 4 tick stop,now u are learning the art of trading,now add a 1 lot to your existing profitable 1 lot and move your stop into the profit area,now take off the training wheels and go.
Hello Guys, I'll publish my next setups also with reasoning of the trades. Unfortunatelly for few days I can not find promsing trades. The US stock market is roaming in some range since some time ago. Still waiting. Regards,
Hello people, here is a file with two setups for short daily trades for tomorrow. Looking forward to your feedback. Regards,
Here is some help. GS just stated that we are 3/4 of the way through the credit crisis. There are many stocks right now that pay high dividends that are probably going to survive the credit crisis. Why not put some of your money into these and hold for awhile. Then trade with the rest. For a long position non-dividend position, I am waiting for MGM to fall down to around support. P & F from stockcharts.com is predicting a $ 43/sh. I see no reason to buy now as its free falling. Does P & F help anyone or is it useless? Please note that only a very few people here are able to make over 25% roi per year trading. By buying a dividend paying stock, you are ahead of the game. I would actually use some margin to give you leverage, and scale out to reduce margin. If stocks are your game, I think you might want to enroll in Bright's prop firm if you want even more leverage. I think you can use up to $ 1 million for just $ 25,000. I am very tempted to do it if I ever sell my current business.