What indicators do you look for most?

This is a discussion on What indicators do you look for most? within the Swing & Position Trading forums, part of the Methods category; Originally Posted by Forexmospherian It took my a few years to find totally the opposite Entries are absolute key for ...

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Old Apr 8, 2015, 9:54pm   #9
Joined Nov 2011
Quote:
Originally Posted by Forexmospherian View Post
It took my a few years to find totally the opposite

Entries are absolute key for me Intraday
As I said, it's subjective, then! (I also trade intraday only, now.)

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Originally Posted by Forexmospherian View Post
Even if I get a direction wrong - I normally can still get out with a profit
Yes indeed. So do I. And to me that's evidence of the relative unimportance of entries in the overall scheme of things.

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Originally Posted by NH538DB8 View Post
Alexa, you mentioned that you trade off the price pattern alone and that is a skill that you've honed over years of trading and watching. With that in mind, are there some basic patterns that you can highlight to research further into?
Perhaps ...

I would look into things like this ...

(i) "Mother bars" and "inside bars"
(ii) Breakouts of consolidation and congestion
(iii) Breakouts of support and resistance (the thread linked to in my signature-file references a fairly steadily profitable method which - with only the refinements mentioned in the thread's initial post - has had only two very minor losing months out of the last twelve months)
(iv) 1-2-3 formations (let me know if you want a link to an online explanation)
(v) "Pin bars"
(vi) Series of higher/lower highs/lows
(vii) "Ross hooks"
(viii) Series of bars each of whose close is higher than the high (or lower than the low) of their antepenultimate predecessors (sometimes the beginning of a very substantial and/or dramatic trend)

Let me know, also, if a few book-recommendations would help.

Glad that you've discovered the template in Timsk's signature!
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Old Apr 9, 2015, 7:09am   #10
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NH538DB8 started this thread Alexa, book recommendations are always good. I'm hungry to learn as much as I can at this point. I've been going back through some charts practicing some of the patterns you mentioned. One that caught my attention was pin bars. I'd like your opinion on if I'm interpreting things correctly for one chart specifically (as confirmation that I understand the concept) if you don't mind. Also any notes other than the highlighted pin bar area would be greatly appreciated.

http://stockcharts.com/h-sc/ui?s=PGH...19&a=402485883

Thanks
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Old Apr 9, 2015, 9:25am   #11
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Hi NH538DB8,
Quote:
Originally Posted by NH538DB8 View Post
. . . I know there is no magical single or combination of indicators that makes something go up. But there has to be a way to sort through the thousands of equities to find those most closely fitting to your criteria for entry.
There are pros and cons for trading any market and one of the cons with equities is that there are so damn many of them and finding the ones that fit your criteria for entry at the right time can be the devil's own job. The flip side to that coin is that one of their pros is that there are so damn many of them and that there's nearly always one that fits your criteria for entry at the right time! Needless to say, the starting point is having a criteria for entry. Once you have that, you know what your looking for and finding it becomes easier. Given your questions to Alexa, my guess is that you're not at that stage yet. As and when you are, there are lots of people with equities experience who will help you filter suitable candidates to trade.

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Originally Posted by NH538DB8 View Post
. . .Timsk, just want you to know that I'm looking through the Trading Plan Template you have in your sig. More structure is never a bad thing.
It's a little old now and needs updating, but most of the key points are still valid. If you want clarification or help with anything - just ask.

Regarding the question about indicators in your opening post, I deliberately didn't say what I use as the very last thing I want is for you to think 'if timsk uses XYZ - he's been around a long time and must know what he's doing - so I'll use what he uses'. That's the danger when anyone gives the sort of answer I imagine you're looking for. On the other hand, I quite see it's rather annoying when people don't answer the question directly and fob you off with generalities like I did in my last post! So, I've attached my chart set up. There are two indicators: regression analysis (overlaid on the chart) and the OsMa in the separate window below. I use the former as part of my set up to indicate areas where I might want to enter if price reverses. In theory (and theory isn't the same as practice) it will help to ensure I don't buy when price is overbought or sell when it's oversold. As far as I know, I'm the only person with the dubious distinction ever to have bought a stock (in the days I day traded U.S. equities) at the exact high of the day and to be duly stopped out for a loss and then, later on the same day, to sell the same stock at the exact low of the day - and to be duly stopped out for a loss. That takes talent! I have a history of doing this sort of thing and the regression channel helps to prevent me from repeating it. The OsMA is similar to MACD and I really only use it to highlight divergence which is harder to spot on a Renko chart than it is on a conventional candlestick chart. The important point is that these indicators are no better or worse than countless others and, just because I use them, it doesn't necessarily mean that they'll be of any use to you at all. Find what works for you and, as others have said, if you can do without indicators altogether, that's no bad thing. No bad thing at all.
Tim.
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Old Apr 9, 2015, 2:46pm   #12
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NH538DB8 started this thread Tim, I understand and agree with your logic completely. I'd like to say that I've fully moved past the point where seeing someone else's strategy doesn't make me want to jump in the deep end and try it, but I'm still tempted. Tempted but not doing so. And your right about the pros and cons of equities. Part of what makes it so difficult.

I'll keep working on that template and reading for now (Including your strategy). Hopefully in a week or two I'll have enough of a plan that I can make a trade or two. We'll see though. I certainly don't want to jump the gun and throw away my initial investment like I have done before.

Thank you all for the advice and guidance. Its greatly appreciated. After I make my first million with dirt cheap penny stocks I'll share it with all of you.
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Old Apr 9, 2015, 3:28pm   #13
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Hi NH538DB8,
Quote:
Originally Posted by NH538DB8 View Post
. . .Hopefully in a week or two I'll have enough of a plan that I can make a trade or two . . .
Trading paper money on a demo account, I hope? If you're of the school of thought that trading demo is a complete waste of time, be sure to trade the smallest size possible, (i.e. the minimum amount your broker will allow) and be prepared to blow up your account!

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Originally Posted by NH538DB8 View Post
. . . . After I make my first million with dirt cheap penny stocks I'll share it with all of you.
Hopefully, that's a joke - about trading penny stocks I mean? If not, rather than being prepared to blow up - expect to blow up! In the 10+ years I've been on T2W, I've never even heard of anyone making good profits on a consistent basis trading penny stocks - let alone know of anyone doing it! If you go down that road (not advised), note that a TA based strategy will almost certainly fail. You'll need good fundamental info' from people on the inside track who you respect and trust - otherwise you're effectively just taking wild punts.

Good luck - and please update us with your progress.
Tim.
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Old Apr 9, 2015, 6:05pm   #14
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NH538DB8 started this thread
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Originally Posted by timsk View Post
Hi NH538DB8,

Trading paper money on a demo account, I hope? If you're of the school of thought that trading demo is a complete waste of time, be sure to trade the smallest size possible, (i.e. the minimum amount your broker will allow) and be prepared to blow up your account!


Hopefully, that's a joke - about trading penny stocks I mean? If not, rather than being prepared to blow up - expect to blow up! In the 10+ years I've been on T2W, I've never even heard of anyone making good profits on a consistent basis trading penny stocks - let alone know of anyone doing it! If you go down that road (not advised), note that a TA based strategy will almost certainly fail. You'll need good fundamental info' from people on the inside track who you respect and trust - otherwise you're effectively just taking wild punts.

Good luck - and please update us with your progress.
Tim.
I plan on having a basic strategy hashed out (read very basic) and start paper trading on it tomorrow as well as back testing. so Maybe in a week or two I'll feel comfortable with a small $ trade.

As for the second comment, yes I was kidding. Playing off the get rich quick marketing that is out there.
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Old Apr 29, 2015, 9:25am   #15
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Average daily range, really, remember indicators do not predict the future they only show what has happened so useless really.
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Old Apr 29, 2015, 12:02pm   #16
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Originally Posted by davidwebbthegreat View Post
Average daily range, really, remember indicators do not predict the future they only show what has happened so useless really.
Hi David,
As you've stated in other posts that you're new to trading - please allow me to offer a small tip that will stand you in good stead along your journey. . .

Don't make assumptions based on logic or accept blindly what you read - regardless of the source. You have to test everything for yourself and arrive at your own conclusions. Your statement above is absolutely fine if you've tested all indicators and found that for you personally none of them offer any predictive qualities. By the same token, if you're only interested in indicators that predict and nothing else then, based on said research, you can conclude they're all useless. Unless and until you've done that, I recommend you keep an open mind, especially as some indicators are classed as predictive. And, as I say, just because you might conclude all indicators are useless, it doesn't mean that all other traders will reach the same conclusion. Indeed, I can assure you they won't - and don't!

Tim.
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