Best indicator I find so far is to find out and take opposite side of Ripley, Coolweb and Cashmoney69 trades. This is sure fire winning strategy -Harry
The floor traders are probably making money off all the market moves created by the 70% of traders doing it electronically. The vast majority of whom lose money. Tho electronic and pit contracts are seperate but they always seem to move in tandem. Not sure which contract is following the other but I have a hunch the pit contracts lead the way.
Well, hmmm....I was referring to equities traders, since it is so much easier to trade the "lagging" securities vs. the "leading indicator" - See the April issue of Stocks and Commodities column for more details...a big reason is the difference in commissions we pay (you, me, everyone buy My brother, who is a member of the CME)...generally 1 tenth of what we pay is paid by member trading firms. When floor traders and upstairs emini firms are selling at a decent premium to fair value, and if they can't buy them back quickly, they generally buy a basket of equities or the whole S&P 500....we just want to buy before they do, or sell before they do...makes trading a lot easier. This is of course, only one of many "tape reading" indicators that need to be followed for proper entry/exits (not just for "daytrading" - but even for pairs, mergers, etc.). Don
ta is hit n miss for day trading, position trading , iRA mut fund investing , cd's you name it .. even in NOB trading pits !!
The most reliable indicators for daytrading are: CSI ........Common Sense Index BSF ........BS Filter
I agree that they do not, and primarily because most indicators are somewhat subjective. Even hard-and-fast rules are often overruled by the trader - emotions, gut, etc. and day-trading increases the occurences of this happening. My philosophy is that more trading leads to more mistakes.
A post a few years back by PoundTheRock..... Few people have the will and drive to study intraday price action for years... but a funny thing happens along the way. What happens is that a full-blown framework emerges, as the market swings from one level to another. Take a couple of moving averages for trend, some bands for mean reversion, and throw in key S&R -- and all of a sudden it's magic, but only after much study of how the market reacts above/below/around these levels. If you have the stamina to grasp choppy markets, then you achieve knowledge that others will not bother trying to understand -- there is an underlying microstructure, and you're part of a small fraternity. All of a sudden, what seems to be a muddle becomes clear as day -- day after day. If you want to play the orchestra, then you need to understand both dimensions of time and instrument. What are the ES, NQ, and YM doing on a daily, 30-minute, and 5-minute basis, for example? Which is the leader, and which is the laggard? Which are hitting key resistance? Which are touching key support? What starts to happen is that you flow from level to level (the closest thread is Jack Hershey's SCT) in an effortless manner. Finally, I have to believe that Cody Willard loved the movie Pi because of its entertaining notion of an ultimate market key -- that's what everyone wants. But I think the movie was all about Max's search and drive, and his countless hours of devotion to the craft. You can work hard all your life and never find the Holy Grail of trading, but you can come pretty damn close.