Thursday, September 19, 2002 4:23:16 PM
LG on Indicators & Trading Techniques
Excerpted from #msg-184063
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I suggest you try my technique. Find three indicators that work for you. I use Stochastic, MACD and Dir Movement, with all the parameters optimised. Analyze the indexes and equities in a multiple time frame format using those same indicators in all time frames. This is not easy, but it keeps you from over trading and gives you a composite perspective.
...
Start each analysis by working down in time. First take a weekly look followed by a daily look to get an overall perspective and to generate long and medium-term trend lines and to identify current trend direction and any significant price action support resistance levels. Then, start the timing analyses by working down the following intraday intervals: 130, 65, 30 and 15-min noting SRLs and where you indicators are at each interval and comparing them to the other levels. This will allow you to begin to see the interrelationship between the indicators of the different time intervals. On rare occasion I will look at the five-minute bars, mainly when an issues is highly volatile or to make sure I have positioned trend lines as exacting as possible. I can’t stress getting trend lines as accurate as possible enough. That is the single biggest flaw in most of the analysis I come across. Well that and seeing patterns wrongly identified or that don’t exist...<g> Both will have you looking for price action inflections in the wrong place or even expecting the wrong break.
I suggest you use this technique the night before each trading day on issues you have identified as prospects. I use a variety of methods to find prospects, but most of them are sentiment based. If you are gong to trade you need the issue to move. If they are not moving you can't make money with them in the short-term, they are investments...<g>
Of course, the best prospects are the one’s you’ve come to know well and read well. Keep in mind these relationships are always on a honeymoon that is destined to end. Use this technique to narrow down the prospects and choose five. Pick possible entry and exit points for the next day for each choice. Track them all the next day and let the market and your indicators tell you what to do. I usually take a position in at least three. Cut the loser and under performers so you can focus on riding the winners. Of course you need to keep an eye on a few key indexes and indicator equities just to keep you from being blind-sided by a major market move.
It is not easy, but it will make your day zip by, this I guarantee.
**********************************************************
(:
Most recent Charts @ MDA Thread #board-1320
My Trading Stuff #board-1220
PPT Archive #board-1280
Charting Experiments #board-1263
Excerpted from #msg-184063
**************************************************************
I suggest you try my technique. Find three indicators that work for you. I use Stochastic, MACD and Dir Movement, with all the parameters optimised. Analyze the indexes and equities in a multiple time frame format using those same indicators in all time frames. This is not easy, but it keeps you from over trading and gives you a composite perspective.
...
Start each analysis by working down in time. First take a weekly look followed by a daily look to get an overall perspective and to generate long and medium-term trend lines and to identify current trend direction and any significant price action support resistance levels. Then, start the timing analyses by working down the following intraday intervals: 130, 65, 30 and 15-min noting SRLs and where you indicators are at each interval and comparing them to the other levels. This will allow you to begin to see the interrelationship between the indicators of the different time intervals. On rare occasion I will look at the five-minute bars, mainly when an issues is highly volatile or to make sure I have positioned trend lines as exacting as possible. I can’t stress getting trend lines as accurate as possible enough. That is the single biggest flaw in most of the analysis I come across. Well that and seeing patterns wrongly identified or that don’t exist...<g> Both will have you looking for price action inflections in the wrong place or even expecting the wrong break.
I suggest you use this technique the night before each trading day on issues you have identified as prospects. I use a variety of methods to find prospects, but most of them are sentiment based. If you are gong to trade you need the issue to move. If they are not moving you can't make money with them in the short-term, they are investments...<g>
Of course, the best prospects are the one’s you’ve come to know well and read well. Keep in mind these relationships are always on a honeymoon that is destined to end. Use this technique to narrow down the prospects and choose five. Pick possible entry and exit points for the next day for each choice. Track them all the next day and let the market and your indicators tell you what to do. I usually take a position in at least three. Cut the loser and under performers so you can focus on riding the winners. Of course you need to keep an eye on a few key indexes and indicator equities just to keep you from being blind-sided by a major market move.
It is not easy, but it will make your day zip by, this I guarantee.
**********************************************************
(:
Most recent Charts @ MDA Thread #board-1320
My Trading Stuff #board-1220
PPT Archive #board-1280
Charting Experiments #board-1263
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