May I ask what indicators that he has you watching? His 2BC method uses NO INDICATORS except the 40 bar MA. He constantly lists stochastic and MACD, but the system only uses 40 MA. I can reference posts from T-Rex stating that he has no confidence in using indicators on such a small timeframe. " Technical Indicators. Use a 40-bar EMA. Use a Stochastic Line Chart (14,3,3 time periods) Use a MACD Histogram Line Chart (5,40,5 time periods) Chart Rules. When the 5 min bar crosses above the 40-bar MA = buy. When the 5 min bar crosses below the 40-bar MA = sell. "
I really would like to know how to use 60 min chart. I admit that I have asked this question before many times but it has been deleted by Moderator.
The 60 min chart with a 40 EMA gives you a heads up on a likely trend. You buy or sell depending whether the market is going up thru or down thru. As in yesterday where the market zig zagged across the 40 EMA, you'll notice when it went up, it didn't go very far before retracing. When it did go up thru (then stalled), go short. Obviously T-Rex's approach works far better in buy and hold situations, even if you only hold it for 3 points. Trading the noise is hard for me, I'd rather buy and hold intraday. It should be noted that you should use the 1,3 or 5 min chart to time entries. The 60 is only a guide line.
Your answering the question really doesn't address the issue of TRex's answering questions, though it's nice of you to step in in his absence.
I'm really not trying to step in in his absence, rather just passing on what I have learned. He's a grown man, he can answer for himself. I like helping others and dislike attacks.
Maybe you should start a real journal and show how you've applied what you've learned to your own trading. Perhaps that way more sense might be made of it.
the indicators I'm using are the ones he has listed i.e. Stochastic 14,3,3; the MACD 5,40,5; and the 40 EMA on a 60 & 5 min bar chart. I also use a 1 min (with 40 EMA) candlestick with tick volume. I watch the real time quotes for the Dow, Nasq and SP emini. I do look at a daily chart so see the daily trend although I don't use that as an indicator throughout the day. As in today when the market was going short and would retrace momentarily, I looked at the tick volume to see how strong the retracement was. Without looking back at all the posts and without trying to second guess what he meant, may I suggest that using the MACD or Stochastic on a 1 minute chart would drive you nuts. Perhaps, just perhaps, that is the small timeframe he is referring to. In any event, its not worth getting in an uproar over from here on out. Everything I'm now using is working great for me, it might not be right for anyone else. If I were in T-Rex's shoes, I wouldn't respond to antagonists or those who seemed to be. I'm not pointing a finger at anyone so don't think that. My favorite thought is "For every action, there is an opposite and equal REaction."
I should also add that I pay attention to patterns. Today I noticed a possible bearish pennant. I plotted the pattern and sat and waited. The market moved long, out of the pattern, but only for a couple ticks or so (I had seen that happen before so I continued to wait). Sure enough, the next time (or maybe the one after) it went short, it busted through the pattern and kept going for another 3 points +-. Then later when the market met support at 1114 or 1113.75, that signaled a double bottom that would be followed with a serious retracement, which happened.