What generates your trading signals?

Discussion in 'Trading' started by Howard, Feb 8, 2019.

  1. Howard

    Howard

    Hi all,

    What generates your trading signals?

    Trend lines? Trend line breaks? Double tops/bottoms? Other chart patterns? Candlesticks? Indicators?

    How do you differentiate between a pullback and a reversal of direction?

    I can make a more detailed comment later myself, but currently use a combination of the stuff above in addition to statistics. I would love to use an indicator for all the obvious advantages it would yield, but have not yet found one which suits my needs. Still researching though.

    Thanks in advance.
     
    SimpleMeLike and wwatson1 like this.
  2. I shorted this yesterday because sloping downwards 200MA and break of pullback trend line, I’ll add to trade later at a better price if possible
     
  3. Visaria

    Visaria

    My brain.
     
    wildchild and comagnum like this.
  4. Elaborate, give us something else
     
  5. Cool topic by the way, hope we get some interesting input :thumbsup:
     
  6. themickey

    themickey

    batman-bat-signal-projector-thinkgeek.jpg
     
    NQurious, Visaria, ps0013 and 4 others like this.
  7. Specterx

    Specterx

    They're the same thing, a change of direction. If the (possible) new direction is the same as a prior trend then it's a pullback, if not then it's a reversal.
     
    tommcginnis likes this.
  8. tommcginnis

    tommcginnis

    If you're [strictly*] trend-trading, you don't have a profit-taking exit, only a stop-loss. (And, your stop-loss is based on drops that statistically indicate a change-of-direction. Data data data.)

    Given that, if your stop-loss gets hit, you're out. (And, recognizing that an exit signal is not an entry signal from the other side, right?)

    Whether it's a pullback or a reversal doesn't matter to you -- you're interested in 1,000 trades that work en masse, not the individual trades that get you there.

    Plan the trade, trade the plan.


    * FWIW, my entries are indicator-based, my *exits* are indicator AND time-based: study your markets/trades, find the money {the pattern of successful trades versus the patterns of not-so-successful trades}. You might not be wrong to conclude that the entries are big and loud and obvious, while the exits are closer to *slight*hints*of*danger*....
     
    Last edited: Feb 8, 2019
    Howard, birdman and They like this.
  9. Handle123

    Handle123

    Maybe it is the end of the week and I am tired, maybe doing this 41 years, maybe I am a cranky older man..maybe I am tired of immature questions by so many who don't understand you have to put in huge quantity of time on your own to discover what works that YOU. I am so much different in language than 41 years ago dealing with trading, I think in terms of risk first and risk always, charting=if you don't breath it, dream it your methods will be short lived, those who do volume rule the markets, exchanges were not developed for retail so they are not going to mean chit with your five lot, don't expect any respect to equality.

    Doing this so flipping long, almost anything works to make a signal, throwing a dart can work cause I can read CHARTS. You can better understand when markets reverse, study that and only that for a few years, chart by hand at extremes and tape them to office walls and ceiling. Learn by doing and studying.

    Indicators are fine, but they indicate and do not foretell.

    Speed of price, acceleration of price, decreasing price with volume, increasing volume, waves & swings range constricting and expansion, clustering, well defined H&S, secondary H/L's, triples/quads, diamond and megaphone patterns, triangles, wedges, failures, hidden-equal-50%-volume divergences, trendline and trendline failures, times of the day, overnight price action, what are the notes/crude/fomc doing, trin & tick, moving averages, RSI's, Bollinger bands, options & hedging, entering fills too fast or too slow, time and sales, dom study, MAE/MFE, time stops, spreads, automation, what you not quick enough to see. 41 years of back testing in various ways.

    This is most of my signals and where turning points, forget asking for definitions, start studying on your own. Start at beginning of the forum and not at the end.
     
    #10     Feb 8, 2019
    S-Trader, Epicurus, qlai and 3 others like this.