Useful things I've found on the Net.

This is a discussion on Useful things I've found on the Net. within the General Trading Chat forums, part of the T2W Archive category; The floor trader's method provides one basis for trading based on price pattern recognition. In some markets observation of volume ...

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Old Mar 4, 2008, 6:28am   #22
 
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nine started this thread The floor trader's method provides one basis for trading based on price pattern recognition. In some markets observation of volume can improve your results.

Although it may seem dissimilar to what dbPhoenix discusses with S & R and Wyckoff they are not that far apart. In both cases you are looking for price action at anticipated support or resistance to generate signals for trading. With Wyckoff the S&R is "true" S&R based on areas of previous activity but in the FTM the S&R comes from moving averages. In both cases you largely ignore price action unless it takes place at valid S&R.

FTM does not provide you a "no-thought" packaged solution to trading the markets. What it does provide is a framework that can be used independently of or as a complement to Wyckoff style S&R trading. My own strategy combines elements of both under certain circumstances to improve my probabilities. Think about the progression of a move and what you a being told as price progresses or fails to progress.

One of the keys is finding the "right" mas for S&R. The ma is just a visual way of representing what players in the market will perceive as value. And, as a move progresses the perception will change so the FTM talks about different levels of penetration of the MAs depending on the nature and stage of the trend. Different markets (on different timeframes) gain support from different mas so picking the right ones by trial and error is an important component of success - think about what other participants are using. Are they using emas (intraday) or smas (daily)?

Potentially you could eliminate the emas and use trendlines or channels instead. A good friend of mine, perhaps poking fun at me, refers to my mas as a lazy man's trendlines.

This is, however, a sound strategy for trading especially in markets prone to good trends.
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Old Mar 4, 2008, 6:45am   #23
 
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Looking at a similar setup myself. What Nine is talking about here does WORK ! It comes down to mastering the signals to sort the wheat from the chaff. I am tying in the 1 min and the 5min. So take the trend from the 5 zoom in to the 1min for an entry. Thanks for sharing
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Old Mar 4, 2008, 8:34am   #24
 
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nine started this thread Good observation ceydababy,

I would add to that by warning against going to too short a timeframe. You may find that you get a lot more invalid signals if you do so however a filter can resolve that. I found with eurofx that a longish timeframe was appropriate during "normal" trends but when you broke out of congestion a short timeframe FTM chart gave good entries - and could be applied even during the reaction to news events. I'd classify this as advanced application though.

A friend of mine went to the trouble of scanning and fixing a significant part of the above document so I've attached it.
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Old Mar 4, 2008, 1:22pm   #25
 
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Thumbs up Re: Useful things I've found on the Net.

Quote:
Some traders, in interviews or articles, would say things like, "our system only produces a 40% win percentage, but the winning trades more than make up for the losers". To me, that type of trading was absurd. I, and most normal people, would not want to endure 60% loss percentage. (A coin toss is 50%!).
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Old Mar 5, 2008, 10:21pm   #26
 
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nine started this thread Another useful strategy (or at least the basis for a strategy) is the Retro Trader strategy described on dacharts.

Retro-Trader (updated October, 2001)
15m breakout system for day trading the Nasdaq and S&P index futures
Strengths: Good at maximizing results on intraday trends, survives well while jockeying for position for the next big move. Uses 2 time frames (5 minute and 15 minute) to filter out bad trades and get early warning of trend changes.
Weaknesses: Mediocre results on narrow range days, unprofitable during chop. Stop-loss placement is too wide for many traders. Frequency of trade opportunities is too slow for efficient learning in realtime. A system that provides freqent small gains is more satisfying for most people.
Intensity: average of 10 trades per day. Requires looking at the chart only every 5 minutes.
Resources: Charts and trade logs from Fall, 2001, are maintained for historical interest and independent study.

Retro Trader Strategy
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Old Mar 7, 2008, 11:04pm   #27
 
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News

nine started this thread So where do you get your news information? I use the 3 sites below and I have only one reason to know when the "big" news is coming - to stay out of the market. That's my personal recommendation for news trading but each to his own poison.

Translated version of http://www.derivatecheck.de/termine/default.asp

is a translation of the German derivate check site and provide importance ratings and good commentary with at times bizarre translations

Forexnews.com

sometimes has slightly different information to derivate check

Forex Forum, Forex Calendar, Forex News @ Forex Factory

is recommended for the filtered news calendar (decide which markets matter to you) and the coloured ratings rather than the (overly indicator/newbie orientated) discussions. James16 is interesting and similar to the making money thread here and Jacko's strategy for the euro is a good one for currencies.
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Old Mar 8, 2008, 3:20am   #28
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Grrrr im trapped between stage 2 and 3 due to 2 things...

i have not enough money to even have a decent capital (have only 115 left in bank or on creditcard taht i can lose without seriously actually having no food!!!)

And 2ndly i dont even understand all that technical stuff aboy emas, and mas and all the complexs lines..

I just use my basic constantly updating graph on tradesimulator.com and the trend line..
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