Don't they have access to order flow, or am I thinking of something else? Also, doesn't Harvey Halman (s?) do something similar? Seems I read somewhere he provides liquidity in certain markets and keeps the spread. Or something to that effect. st
The beauty of it, that it is not a scalping strategy. It gives only 1-2 signals a day. The rest is waiting...
I don't have a single chart on my screen - just a spreadsheet of numbers and level II. But I know exactly where they have been intraday and where they have been for the last several months. I now track about 20 stocks live on a montage, and have many more than that in my head in a less detailed way. I look at charts less for the individual chart on a given stock than to compare returns on different stocks in comparison to each other and it's sector and market. Sometimes I pull up a chart to see where the gap fill is etc, real basic stuff, but none of it intraday. nitro
As an options trader, I never use charts. Volatility is King in my book. Almost all my positions are non-directional and I base all my trading decisions on historical and implied vol levels.
Charts are relatively new. A while back getting charts was a do-it-yourself thing. I did make mine back then...I was only making about 10% a month at the time..
I agree 100% w/ your statement. just look at any chart and visualize the next move going up -- it will make sense; and so will it, if you visualize it going down.
A couple of years ago when I wanted to improve my tape reading ability, I set up my screen so that all I had was a quote window, a time and sales window and a buy and sell window for my trade simulator. I spent about a week trying to trade like this and noticed a significant improvement in my ability to read direction purely using price over the week. It has something to do with how your mind remembers key numbers. When the market is showing resistance a key number will keep showing up, when price trades below it, it bounces back to the key number very quickly, then when the market is ready to rally, it climbs easily above that key number, almost without effort. When you see big volume coming in and the market is not collaping, you know there are plenty of buyers coming into the market to absorb the volume and take the market higher. Sometimes, charts don't give you this feel for the action. I recommend all traders that want to perfect their game give it a try.
Agree with most of you here. My swing trading systems are only based on price patterns. I don't even know how the charts look like for the stocks in the portfolios. As far as day trading is concerned, I still use charts, to give me points where something can happen, support/resistance, Fib retracements, etc.. For me, at those levels, it is mainly a 50/50 probability, and then money management (namely stop losses) should make the the system profitable. I do not give the charts any predictability, just points of reference.
Sounds like an oxymoron. most patterns, pivot points, support, resist spots, points etc might be an "INTERNALIZED" system but most if all are based on or from the price patterns that are ALSO displayed on a chart. Charts serve as a useful tool no doubt. if it is in your head (such as pit traders) more power to ya. But a chart is a chart as a chart is a chart. A chart displays historical prices..................What else is there to use for short time traders? If it quakes like a.....................................Well you know....... I love technical analysis, it has served me and prolly 98% of everyone else in here..............
I bet is the other way round; patterns are most likely there to deceive than to give clues; when I see double tops/bottoms, etc. I always think they won't be validated and during intraday movements it's most likely the case than not. the only thing I find useful is price reaction to emas: very consistent. EDIT; good to use charts as contrarian indicators imo