Hi, I´m daytrading the swedish OMXS30 and currently having problems with the market behaviour. It´s touching the 1600 level (above and below) and I can´t see any pattern in the price changes. Is it just me or is this normal when index being traded around a big important level? Better taking the day off? Sorry for my english, hope you still understand the question.
Feels like opening hour. As you noticed I have alot to learn. Doing this about every second week when I don´t work. Btw, where is the "post edit button"?
Two things for you: ATR and ADX/DMIs. ATR will show you the "true range" of pricing swing for any given candle. For the OMXS30, you'll need to take it back for a bit to find what a "typical day" or "typical minute" looks like. When you get that level (say, 5pts/minute) and the market is ATR=2.0, you have something concrete. ADX/DMIs tease out the strength of up candles and of down candles (the DMI+ and DMI-), as well as the overall market direction (ADX). The one general rule here is, an ADX less than 25 is not a trend worth thinking about -- it's a market *lacking* in an average direction. (Again, another concrete condition you can look to when you ask, "WTH?!?!?") Look these guys up, KNOW THEIR CALCULATION, and then go to town. BEST WISHES! (Oh! And cite for "Good instincts!" with regard to not wanting to play in a frothy pool. That's an important bit of wisdom that too many of us forget.)
Thanks for the reply. I´m already using ADX/DMIs but haven´t been reading much about ATR. Will definitely look that one up. My screen is clean enough for another indicator. Before I "over analyzed" everything and it got to messy. Today there were 2h of ADX above 25 so I guess I should have thought more about that... Do you never trade below ADX 25? It´s my forst post here and it seems like an experienced forum. Guess Sweden is to small for one. They mostly write something without having a clue what they are talking about.
Results-wise, ATR is equivalent to a volatility measure that can work on extremely short candles. (If you plot IV or HV, you can tune the ATR to match rises and falls -- rather instructive.) The ADX is not more for strength-of-trend, not a Go/NoGo for trading. (A Go/NoGo would depend on the specific type of trade, right?) Your own timeframes, your own underlying(s) [OMXS30], and your own trading patterns, will each determine the details of how best you use them. Just one thing: Do NOT take ANY "technical indicator" as it lands on your screen. There is absolutely NOTHING magical about the look-back parameters that are seemingly ubiquitous around the various trading platforms. NOTHING. So, put these on your platform, and play with the parameters until you 1) understand how they work, and 2) have results on your screen that work AT LEAST BETTER THAN 50%. (Why "50%"?? Because you can make that result with a coin flip. ("Hello!") So your tools must ALWAYS do better than that, ferchrisake.) (That's enough moaning..... )
%% Your English sounds fine. I dont know that one HEjja;but yes round numbers+ numbers, like $100, $110 area on QQQ tend to stick/stall/speed bump. I am assuming regular[volume] market hours.Good real liquid place to close a position, on a liquid ETF for example Same thing on SPY, $200 level.......
No worries tommcginnis, I only use the DMI´s along with some other indicators when deciding to take a position or not. I started getting my hands dirty not long ago, as you say I´m trying to get an understanding of everything combined together after alot of backtesting, reading etc. etc. But, it´s alot more fun doing it for real! Results are ok so far (not yesterday though...) Seems like most people failing because of the psychology. Maybe it will come later but got no problems taking a loss when I see that I made a bad decision. Most important thing is get more sessions trading, to many beginner mistakes that I ask myself (why that trade???) afterwards. Luckily I got alot of free time deciding my own working days. Thanks for the input Murray. Sorry if I got off topic Regards, the one still fighting on the 1600 level
Hej, 1600 är (var) en motståndsnivå baserad på tidigare topp i mars, därför inte så konstigt index varit "jittery" runt den nivån. Nu har vi brutit igenom som du sett. Nästa motståndsområde på uppsidan är ~1634