Trend Continuation Candles

Discussion in 'Technical Analysis' started by dunitlongpole, Mar 17, 2006.

  1. First of all, your not a newbie trader.

    Secondly, you can re-read my message and you will see I do not state to watch 11 time frames all concurrently.

    Thus, since I myself don't watch 11 intervals at the same time...I can't advise you on how to do such yourself.

    Here's my recommendation...use whatever intervals your currently using and that's it.

    Keep it simple. :cool:

    Mark
     
    #41     Mar 18, 2006
  2. I did misunderstand a bit of the previous context.

    Anyway selecting a right timeframe (among 11 of them) which could be different for each day wouldn't be an easy job.

    Bye.
     
    #42     Mar 18, 2006
  3. As I've mentioned before...selecting your particular interval should be dependent upon what type of trade your going to initiate and/or what type of trader you are.

    For example...of the intervals I listed as my favorite...

    Which one would you use to enter a Long term trade that you plan to hold for many weeks or months?

    I'm sure you aren't going to select the 2min chart interval.

    See...you've eliminated one of your favorite intervals simply via the type of trade your going to be put on.

    Here's another example...lets pretend your going to be doing some scalp trades tomorrow...

    I'm sure you aren't going to be entering your trades via the weekly or monthly chart intervals.

    Simply, I listed several chart intervals that are my favorite and as I stated before...

    Which chart interval I select to use from among my favorites is dependent upon the type of trading I plan to do.

    It's not that hard (its easy) if you decide first what type of trading your going to be doing.

    Here's an analogy...lets pretend you have 11 types of favorite pants to wear and one of them are Nike sweat pants.

    Tomorrow you decide to go jogging...are you going to wear your dark dress pants?

    :D

    Seriously though...every trader has a different screen size, different number of monitors and different ability to process a certain amount of visual information at the same time...

    Your ability to follow a particular number of intervals or different types of trading instruments is dependent upon the above variables.

    There's been some in-depth threads about this type of discussions in the past where newbie traders asked questions involving the above variables...

    http://www.elitetrader.com/vb/search.php?s=

    P.S. By the way, I've been trading via my wide screen laptop for the past few months instead of using my multi-monitor two desktops.

    Thus, I can't watch 11 different intervals at the same time even if I wanted to.

    I just decide what type of trading I'm going to be doing for that trading day and put up a few chart intervals that I feel is suitable for that type of trading.

    Mark
     
    #43     Mar 18, 2006
  4. a couple of t houghts or more..............usually more.........mark is correct about selecting the chart time frame for the trading time frame.........scalping lower time frame.........position swing trading longer time frame.............my trading is the same everyday...............same chart same time frames..........bars only so not too applicable to forum ..........but, the system is 100% mechanical or at least 95 ...........100% is mind game............take me out of the ballgame..........i look at indicators and when same signals appear each day on same time frame charts i use every day and that is 2 ..........i wait for entry which is identical to exit so actually reversal all day is the goal but not there yet a si am no a good trader as systems development has taken it's toll, although final result is satisfactory to me..........other opinions are not what i seek but enjoy reading...... ........by the way, the 2 charts are different time frames but system is same on both the longer one being for smoothing and the shorter one for the signals ...........the longer prevents the wrong entry due to reactiveness of short chart...........although the trend ID usaually keeps it in perspective.......as to trend........just longer one makes it obvious that real turn is not here yet.......the 2 charts not necessary only two makes it just that much simpler.........mark is a pretty sharp cookie a s i rea d him.........i am not but much experience and systems development has shown me enough to be alble to ID who can and who can't........mark can......... a t least more so than most who post on et.......as i read him .......nothing personal to others.......
     
    #44     Mar 19, 2006
  5. Practically there would be Almost impossible to select a different timeframe each day among 11 timeframes (2min, 3min, 5min, 10min, 15min, 30min, 60min, 120min, daily, weekly and monthly).

    I don't understand the followings:

    You need to monitor all 11 timefrmaes just 1-minute, and say the market changed 0.1%, before your daily trading every day's openning, otherwise you don't know which one is the best option for the day.

    When trading currently with a monthly timeframe today, are you going to change to a diffrent timefrmae tomorrow?

    Anyway your fairly Logical comments are quite interesting. Bye.
     
    #45     Mar 19, 2006
  6. I think the reason why your having a difficult time in understanding is that your making the assumption that you wake up each trading day and must FIRST determine what charting interval will be used prior to knowing what your going to be trading, prior to knowing what type of trader you are and prior to knowing what type of trades your going to be doing for the trading day...

    Reverse your thinking and you'll know what chart interval is suitable for you regardless if your trading stocks, futures, forex, derivatives or whatever.

    Simply, your trying to put your pants on first before putting on your underwear and shoes.

    What I'm saying is you must FIRST determine what type of trader you are.

    That first step will eliminate some of the intervals from among your favorite chart intervals.

    Next...prior to trading of the day...go over your trading plan and determine what type of trading your going to be doing that day...

    What trading instrument are you going to be trading?

    Are you going to be scalping?

    Are you going to be looking for day trades (non scalping)?

    Are you going to be looking for position trades that may be held overnight?

    Are you going to be looking for swing trades that may last several trading days or more?

    Are you looking for a long term postion that may last weeks or months?

    Do you see anything interesting in your pre-market preparation before the trading day?

    Answering the above questions PRIOR to your trading day in your morning preparation should eliminate more of intervals of choice from your favorites.

    Let me give you a more microscopic an example if you still don't understand.

    Whenever I trade Treasury Futures...I only do it as a swing trader during 2 particular months out of the trading year.

    Now...read that above statement again and very carefully.

    Now...lets eliminate some intervals from among my favorites (2min, 3min, 5min, 10min, 15min, 30min, 60min, 120min, daily, weekly and monthly).

    Do you think I'm going to use the 2min chart interval to make a trade decision for a trade that's going to last many trading days or longer?

    In case your wondering I don't use the 2min, 3min, 5min, 10min chart interval for swing trading :cool:

    * (I've now put on my underwear first)

    Now...lets pretend today is the start of those 2 months of swing trading the Treasury Futures.

    Therefore, I'm not going to be scalping nor day trading nor position trading the Treasury Futures because I know what type of trading I'm going to be doing in a particular trading instrument during a specific time span of the trading year as a swing trader.

    Here are my intervals of choice from among my favorites I mentioned earlier:

    15min, 30min, 60min, 120min

    Ok...now we have to only monitor 4 chart intervals.

    * (I've now put on my pants after putting on my underwear)

    Lets pretend your like me for the past few months and your using your laptop only for trading and your too lazy to use your multi-monitor two desktop system.

    The trading day hasn't started and while reviewing your charts individually in ZN, ZF and ZB along with their respected Yields (should take no more than 10mins)...I see one of your favorite patterns on the 60min chart.

    Yet, because of a technique called candlestick blending and de-blending...I can monitor the 15min, 30min and 120min chart via only watching the 60min chart interval.

    However, lets pretend I know nothing about candlestick blending or de-blending.

    I have one particular chart of interest after seeing early hints of a possible swing trade signal in reveiwing my charts prior to the market opening.

    I organize my charts.

    Actually its the usual setup for swing trading treasurines and I just bring up that particular designated workspace template for swing trading and change the charts to ZN, ZF, ZB and their Yields (index) called TNX.X, TYX.X and FVX.X)

    That's 6 charts that fit comfortably on my laptop screen itself.

    Lets pretend I'm not a newbie trader and do understand the relationship between ZN, ZF and ZB.

    I can watch just ZN if its the key chart of interest and have minimized ZF and ZB.

    Thus, on my monitor in view are just ZN, TNX.X, TYX.X and FVX.X

    Wow...that's only 4 charts...all on the 60min chart interval.

    Now...lets pretend I'm not a newbie trader and I set my ZN chart interval to 60min because I see an interesting pattern, set my TNX.X to 120min chart, set my TYX.X to 30min chart and set my FVX.X to 15min chart.

    Wow...that's watching 4 different chart intervals on 4 different markets in front of my own two eyes without any extra clicking (chart adjustments) that will allow me to trade either ZF, ZN or ZB...

    While just having ZN (key chart of interest) and the respected Yields in view on a laptop and prior to the trading day.

    My point with the above...I think your having difficulty with this is because you haven't decided what type of trader your are nor what type of trading your going to be doing prior to the trading day.

    If you know you are a particular type of trader, what trading instrument your going to be trading, what type of trades your going to be looking for on a particular trading day prior to the market open...

    I truly can't understand why you would have trouble deciding upon what type of chart interval your going to be using regardless if I gave you a list of 11 favorite chart intervals or a list of 100 favorite chart intervals.

    Once again...put your underwear on first and then your pants and then your shoes prior to opening that first trade position to prevent being confuse about which particular chart intervals to use that's from among your favorites.

    Then sit back...properly dressed and wait for a pattern signal to appear if one does appear.

    This thread has now run its course and no further explanation is needed.

    Note: The above has been discussed before in other threads here at ET under the theme about how to make efficient use of your trader workspace (monitors).

    I participated in one of those threads along with mentioning a few things about such in the Trading Hammers (revisited) thread.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880

    Mark
     
    #46     Mar 19, 2006
  7. I guess it might be better for you next time to post a forex question on a Forex Trading thread. :D

    I'm signing off from this thread now. Bye.
     
    #47     Mar 19, 2006
  8. the problem with lengthy explanations is the experience of the reader or lack of it might cause some frustration......but i think u laid it out well on the last post so one with the lack of it could grasp.......i think wanting to jump in eyebrow deep instead of ankle deep is the problem........for the inquirer..............i do my trading day like this...........i have designed thru a lot of experience backtesting and watching realtime charts by the th ousands of hours by a few..........i have designed a system /systems that all work well..........2 in particular work well far above the rest..........those 2 are default set as a matter of fact they run 24/7.............no changes made for different market days............the 5 or so patterns/signals are there every day in an extremely repetitive order day after day........for a long time this has gone on..........it is simple yet took years to build..........to filter fakeouts, rea dthe whipsaw, for trading the whipsaw and exiting as breakout occurs for real not fake........unruly markets to smooth markets the systems work well enough to make me happy..........so with this said, I do not seek improvements as it is over.........as far as i can take it for now .........it fits the emini's......same settings same time frame...........i use 2 charts with same time frame just also 2 systems that are best i have......1 complements the other.....everything is customized based on year s of study and experience.......failure is rare........i intraday trade only.......totally mechanical........in other words , yes one must choose which charts ar eto be used for what.......and what time frames are to be used for what.........i trade YM only intraday only so mine is same everyday and set........no changes or curve fitting allowed now.........i hope it is over and it appears to be over as far as hard work............tears and sweat.....
     
    #48     Mar 19, 2006
  9. great post Nihaba. Cleared a few cobwebs from my head.
     
    #49     Mar 20, 2006