Profitable support trading on indices Dow ,dax ,Nasdaq and s&p

This is a discussion on Profitable support trading on indices Dow ,dax ,Nasdaq and s&p within the Indices forums, part of the Markets category; Historically indices are well supported and indexes usually rise over the long term.To make profit buy at supports of major ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Jun 18, 2017, 8:51am   #1
Joined Apr 2017
Profitable support trading on indices Dow ,dax ,Nasdaq and s&p

Historically indices are well supported and indexes usually rise over the long term.To make profit buy at supports of major indices.Supports are at least two trough bottoms on daily or 4 hour charts

This strategy is buy at index supports (horizontal , up trend line and up channel) ,sell high.It will be highly profitable ,if used correctly.Supports are historically good areas to buy ,patience is required to wait for a day or a few days or even a month ,for the trade to go into profit.Buy at bottom of supports in ranging markets.

This is not a breakout strategy ,only 10 % are uptrend trades ,they are only traded after a successful trend breakout and tested and retest of new trend breakout.Rest of the time 90 % buy at supports on pullbacks.

Buy a weekly or daily or monthly put option as a protection for a long trade .There is the cost of the options to be deducted from profits , but this cost gives the holding power to hold on to your trade , for almost a week or month.Put Option prices costs are half the volatility , so one can make money on other half.

Before opening trade read context to see support /resistance ,if context is good buy near support and close end of day on daily but weekly run it for days.

As an example
weekly dow put long cost 34 strike 21100
long cash dow 21120



http://www.trade2win.com/boards/trad...g-options.html

I did a similar strategy on Dow Jones PRODUCING A CONSISTENTLY PROFITABLE METHOD

http://www.trade2win.com/boards/indi...ml#post2919808

Supports Compulsory filter
• For long positions price has to sit (close) above support with full 30 min candle or at least with more than half of 30 min. candle real body closed above support.
• Have you seen resistance become support on several points?
• Don’t open long position if major resistance level price is less than 20 pips away from current price.
• Is there newly formed support or up channel/slope on tick charts?

Buy above support, bottoms of channels or above moving averages



I start with a daily option trade , after 2 losses I move to weekly options , therefore recovering all previous losses .First trade is at first support and second trade is at second support , both on daily options .After a string of losses I increase position size to recover losses and make a profit.

Don't close half position , just run your profits.Close losing trades at end of day .

After 4 consecutive losses I increase my stake to double , same after 8 losses and 12 losses



Practice on demo first , this hp system







1.2 News - Compulsory filter for all systems
• Don't take any new trade 2 hours before MAJOR news (i.e. NFP, FED, ECB, BOE, BOJ, bank rates), and close all existing trades 15 min before. Enter 5 minutes after these, but let market settle and show clear set up.
• Don't take any new trade 30 min our before high impact news, but don't close existing trades. You can open trades immediately within 5 minutes.
• Do not trade until major Central bank conferences (ECB, BOE, BOJ and FED) are over.
• Only high impact news to be considered, the ones that are marked with red on calendar.
• Do not do any trades until the major central bank press conference is over, never put on trades during major central bank conferences.
• Thin down (reduce) positions near the news time to avoid slippage.

1.4 Trading opening time – Compulsory filter
• New trades opening time: 08:30 to 13:00 GMT and 13:30 to 19:00 GMT
• DAX opens at 07:15 and FTSE opens at 08:00 GMT. Do no not trade for first 30 minutes until FTSE opens and market settles.
• S&P opens at 14:30 GMT. Do no not trade for the first 30 minutes, until markets settle.
• Do not put on trades, you have no interest in managing with less than half an hour to go until the end of session.

1.6 Defining a trend
Point is that every trader should choose 1 time frame (maximum 2), for their trend definition. This trend definition must always be 2-3, time frames higher than the one of entry. Example: entering on 15 or 30 min charts, use 4 hour for trend definition.
• Break of 2 sets of major supports or resistances (with a minimum 50 pip distance between the two ) constitutes a trend.
• Sloping trend and channels must be evident on 4 hour charts (not only on 15 min or 30 min)
• Corrections to the trend /channel lines are not down trends in an up trend , and vice versa.

2.6 Trading DAX and FTSE - Compulsory filter
• They have to trend/move in the same direction in order to place an order. Look also at DOW and S&P; they have to move as well in the same direction. This does not mean set ups have to be valid on the other instruments; it means they just have to move in same direction. (S&P/Dow is more important than FTSE)
• If FTSE and DAX are not moving together, then either FTSE or DAX orders are valid, only if S&P and DOW are moving together.
• DAX opens at 07:15 and FTSE opens at 08:00 GMT. Do no not trade for first 30 minutes until FTSE opens and markets settle.
• S&P opens at 14:30 GMT, so do not place new orders between approximately 12:30 and 15:00, until direction is clear.
• If there is no news, do not open new trades on indices 1 hour before USA opens.
• Trending definition: prices must be above lwma 18 for longs or below mas for shorts on 30 MIN (with slope, channel and trend line).
• Rules 3.1, 3.15 and 4.1 will invalidate the compulsory filter (rule 3.12). It applies if DAX, FTSE, S&P and DOW are trending in the same direction.
• Do not open new DAX position after 110 pips made in one day.
• Do not open new FTSE position after 75 pips made in one day.
• Always use s and p supports , resistances , trend lines and channels to trade ftse /dax /djia
• The system set ups must valid on the instrument as high probability example n ftse it has to be valid on ftse (not s and p , dax , dow , nasdaq
Attached Thumbnails
longs.jpg   dax-sr.jpg   dax-sr2.jpg  

dax-sr3.jpg   sr.jpg   sr3.jpg  

str2.jpg   supp4.jpg   dax-trend.jpg  

clipboard01.jpg  

Last edited by foroom lluzers; Jun 19, 2017 at 7:40am.
foroom lluzers is offline   Reply With Quote
Old Jun 18, 2017, 9:10am   #2
Joined Apr 2017
foroom lluzers started this thread This is like a set and forget strategy.Read all my psychology threads to help you understand the importance of trading psychology ,why trading with right psyche is important. Psychology is 80% success , system is only 20%.

Learn trading psychology now in the following threads .

http://www.trade2win.com/boards/psyc...ent-forum.html

http://www.trade2win.com/boards/psyc...sychology.html


READ ABOUT MARKET TIMING
It is not always possible ,maybe difficult to time the markets

http://www.trade2win.com/boards/tech...-roulette.html

http://www.trade2win.com/boards/tech...breakouts.html

Mistakes make losing traders

http://www.trade2win.com/boards/educ...g-traders.html


Patience is required

You need patience to wait for quality trades , the patience to run your winners and the patience to wait on the losers.

http://www.trade2win.com/boards/gene...ml#post2913022
foroom lluzers is offline   Reply With Quote
Old Jun 18, 2017, 10:49am   #3
Joined Nov 2016
Can you put a few more indicators on your charts? I can still see the price.
seekingTruth16 is offline   Reply With Quote
Thanks! The following members like this post: wackypete2
Old Jun 18, 2017, 10:59am   #4
Joined Apr 2017
foroom lluzers started this thread
Quote:
Originally Posted by seekingTruth16 View Post
Can you put a few more indicators on your charts? I can still see the price.
I don't actually use any indicators in my trading,I know where my supports are on candles .This is a simple support buying system.

Only inexperienced or unskilled traders need indicators .I don't even look at them.
foroom lluzers is offline   Reply With Quote
Old Jun 18, 2017, 11:18am   #5
 
darktone's Avatar
Joined Nov 2003
You think those candles arnt indicators?
__________________
Me and you, we is largely the same bruv! We dont know shît! The difference is, I know I dont know shît!!
darktone is offline   Reply With Quote
Old Jun 18, 2017, 11:22am   #6
Joined Apr 2017
foroom lluzers started this thread
Quote:
Originally Posted by darktone View Post
You think those candles arnt indicators?
I know they are indicators , so are going to be constructive and call some trades in foresight.
foroom lluzers is offline   Reply With Quote
Old Jun 18, 2017, 11:46am   #7
 
darktone's Avatar
Joined Nov 2003
Quote:
Originally Posted by foroom lluzers View Post
I don't actually use any indicators in my trading,I know where my supports are on candles ..
^ if you say so

So how would it benefit anyone if I said where I was buying?
Im buying blah blah at 10 , 8 , 6 , 4 , 2.
filled.
looking for the the outs at 10 , 12, 14 , 16 , 18 blah blah blah....

I dont have the power of foresight either, good job you dont need it to be profitable eh.
__________________
Me and you, we is largely the same bruv! We dont know shît! The difference is, I know I dont know shît!!
darktone is offline   Reply With Quote
Old Jun 18, 2017, 11:51am   #8
Joined Apr 2017
foroom lluzers started this thread
Quote:
Originally Posted by darktone View Post
So how would it benefit anyone if I said where I was buying?
Im buying blah blah at 10 , 8 , 6 , 4 , 2.
filled.
looking for the the outs at 10 , 12, 14 , 16 , 18 blah blah blah....

I dont have the power of foresight either, good job you dont need it to be profitable eh.
You pick numbers out of thin air ?

You don't need foresight , just be content with hindsight ,it gives you valuable information ,unless blind is leading by hindsight market timing.
foroom lluzers is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Where Will The Nasdaq, S&P 500, and Dow Find Support And Resistance? Here’s My Take… morpheustrading Indices 0 Oct 24, 2012 4:48am
Simple and Profitable Stocks, Indices, Options, Futures trading system marywhite Trading Systems 12 Jul 1, 2012 6:09pm
DAX,ES,DOW,NASDAQ,Crude oil,Gold , US & EU Stocks Global trading , Skype Group. nudoler7 General Trading Chat 1 Mar 26, 2012 5:53pm
Intra-day trading: Global Indices (Estoxx50, CAC, Dax, YM, ES, NQ, ER) Adamned Discretionary Trading 6 Dec 7, 2006 1:48pm
Technical analysis on Ftse-dax-Nasdaq-Dow CHARTY Technical Analysis 10 Jan 2, 2001 10:50am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)