'In my world....the more "slow bumpy action...with lot's of whipsaws," the better' Can you expand on this. Thanks. I bet you trade off the bollinger bands or similar type action. If so, what do you use to detect if prices will start of stick to one band and keep going in one direction. Correction, I meant .5% fo the index values not 4-5%. 1/2% of SP500 futures should be roughly 6 points currently.
Scalping? I agree with "slow" and "bumpy" *as in bumps off of support and resistance* But whipsaws.... I dunno about those, I haven't ever seen a trader that has said "I like whipsaws" Always a first for everything. What kind of trading do you do Dr. Zhivodka? Automated? Also why do you want the extended day on NYSE? See lots of posters say it will lead to less action in the day.
...Mean-reversion.... ...statistically significant.. ...must go now.. ...Simpsonâs coming on... ...hot tub beckoning...
Yes, but I'd think the other way: if I traded the 10 min. time frame, I'd firstly determine the 60 min. direction, then I'd be looking to find only 10 min. trades in this direction.
I think you should first approach this more via what type of strategy your using for your Entry Signal. For examply, if your using a trend following strategy and if its good... It should either keep you out of range bound markets (fewer trade signals) or your exit strategy is able to get small profits prior to the position reverses against you. Just the same...if your using a strategy that's suitable for range bound markets and if its good... It should either keep you out of trend markets (fewer trade signals) or your exit strategy is able to get small profits prior to the position reverses against you. What I'm saying so far is that via knowing what days are most likely to be range bound will allow you to make adjustments in your profit target level. Just as important as the above...you may want to spend more time with a key economic/market event calendar. http://online.wsj.com/public/resources/documents/b-econoday.htm Pay close attention to trading days that have no key events especially when the only events of the day seem to be occupy by Bill Announcements. In addition, your trading instrument most likely has durations in the year that its most likely have a tendency to trend and knowing such will give you another valuable piece of the puzzle especially if it has the tendency to trend in a particular direction during that particular duration of the year. Thus, will also allow for better position size managment because using the same trade size each trading day is to say the market price action is the same each trading day. The fact that we have trend days and range bound days should tell most that position size management (knowing when to go large and when to go small) can have great impact on your overall results. Simply, the key for most of us is to first know what type of strategy we have and to know when is the best time to use it. I just think too many of us spend too much time tweaking parameters about our entry signal in hopes the method can be applied every trading day instead of learning when is the best time to use that strategy. Thus, learning and understanding the price action will improve your trading results regardless if your using indicators or are a price action only trader. By the way...the above is via that as a Futures trader and may not be appropriate for Stock Traders. Mark (a.k.a. NihabaAshi) Japanese Candlestick term
============= Re ;shallow pullbacks TOC; No, not really, if there was a way to predict, stops would NOt be needed. So this concerns probabilities. However there are certain things which id them in present tense including shallow pullbacks, in YM,ES, NYSE stocks. Wish there were more trends , thats a favorite area of study; actually its helpful to me to think of mini trends, especially since YM,Es may not trend whole day anyway. Helpful question.
============= Happens both ways; liquid NYSE can top with creeping small bars/candles, on an extended move with ,higher larger range candles [up or down,]may tighten up stops. And the best of trends,one way to define that, would be shallow pullbacks, hard to stop out a shallow pullback. wish we had more of them. At beginning of move/trend, candle range usually doesnt matter.; especially may help if focusing on a few markets.