Trading intraday price retracements/waves

JTrader · Apr 4, 2006

Trading intraday price retracements/waves

Hi
can anyone think of an indicator/s that are particularly suited towards, easy to use, and successful for capturing intraday price retracements/waves :?:

As we know, prices move in waves. In a general uptrend, there are up moves and pullbacks, making it possible to trade in the direction of the general trend as well as these retracements back from the general trend.

Where do you think trendlines - trendline breaks fit into this scheme:?:

Thanks a lot
jtrader.

Lightning McQueen · Apr 4, 2006

jtrader said:
Trading intraday price retracements/waves

Hi
can anyone think of an indicator/s that are particularly suited towards, easy to use, and successful for capturing intraday price retracements/waves :?:

As we know, prices move in waves. In a general uptrend, there are up moves and pullbacks, making it possible to trade in the direction of the general trend as well as these retracements back from the general trend.

Where do you think trendlines - trendline breaks fit into this scheme:?:

Thanks a lot
jtrader.

Hi jtrader
My favourite for this would be the trix indicator, with the input number set between 9 and 12. Time frame no shorter than 10 min, try it, if you know a better one let us know

Not using trend lines in my strategy so have not done any work in this area as yet

Don

c6ackp · Apr 4, 2006

Hi jtrader

for the major intraday retracements, 62% fib level will often provide a level to focus on

intraday swings - I use slow stochs (x,y,z) - experiment with x,y settings for your chosen market (I don't bother with the crossover info z)

some PBs are so fast I switch to tick charts to observe the price action building

1st PB is always the most reliable long or short, a successful 2nd PB is more common in uptrends, hence 12345 waves going up and, generally, only 123 waves going down (Elliott)...

HTH
Steve

Trdr · Apr 4, 2006

I like using MetaStock's Standard Error Channel (SEC), others the Pitchfork — 'linked' parallel trendlines, those together with the Fibonacci Price Levels tool.
The price will often intersect with the SEC and fibo line and Correct/Retrace.
I think of the fibo tool as an indicator — indicator of future price since it's used to Project future price targets.
Additional indicators such as RSI, Stochastic, CCI etc can be used, experimenting with various amounts depending on the timeframe and instrument being traded.

JTrader · Apr 5, 2006

Thanks chaps

don_h - trix does look quite handy, and maybe handier than I remember, the last time I looked at it......although it can be a bit confusing because the value may fall below 0 and continue falling, indicating a downward move, but the price bars may be going up

So it is possible to get caught out.

It looks good to me when it works as i would want it to work, but not good when trix is telling me down, and price candles are going up, leaving your stop-loss looming close by. However, RSI and other indicators can also do this.

Cheers.

Lightning McQueen · Apr 5, 2006

jtrader said:
Thanks chaps

don_h - trix does look quite handy, and maybe handier than I remember, the last time I looked at it......although it can be a bit confusing because the value may fall below 0 and continue falling, indicating a downward move, but the price bars may be going up So it is possible to get caught out.

It looks good to me when it works as i would want it to work, but not good when trix is telling me down, and price candles are going up, leaving your stop-loss looming close by. However, RSI and other indicators can also do this.

Cheers.

Hi jtrader

Yes agreed this can happen on shorter time frames the more you increase the time frame the less it will happen if you increase the trix value as well its even better . Leaving the trix value the same in all timeframes is asking for trouble imo. Dont worry too much about the zero line as its the trend and momentum you should be looking for
Try turning the trix into a histogram,get the timeframe and trix value right then you will see the waves you seek

Don

JTrader · Apr 6, 2006

Hi don_h

Trix is very similar to a MACD, and does look best set as a histogram IMO. A MACD might be just as useful as trix, with the MACD line set as a histogram.....I prefer to look at subgraph indicators, with the line that matters most, set as a histogram.

Lightning McQueen · Apr 10, 2006

jtrader said:
Hi don_h

Trix is very similar to a MACD, and does look best set as a histogram IMO. A MACD might be just as useful as trix, with the MACD line set as a histogram.....I prefer to look at subgraph indicators, with the line that matters most, set as a histogram.

Hi jtrader
Yes macd appears identical to trix in all timeframes and I agree with you that it may be more useful as it has more parameters to tweak (in tradestation). Histograms rock!

I must admit that I was disappointed that your interesting thread has died a bit hence the post to try and kick some life back into it, cmon you other peeps keep the thoughts rolling.

Has anyone constructed a MACD from hull moving averages?

Don

JTrader · Apr 12, 2006

I've just been examining the automatic "pivot high", and "pivot low" showme studies in Tradestation and this looks pretty well suited to the job of capturing part of intraday price retracements/waves on a consistent basis - with the right settings, for grabbing a handful of pips at a time.........But as with any other strategy or indicator i have ever seen, it can faulter.......

Lightning McQueen · Apr 15, 2006

Hi all
I haven't constructed that MACD from Hull Moving Averages yet, work in progress so to speak. but thought I would post a chart showing jtraders pivot hi pivot lo study and a comparison between a 10 period EMA and a 10 period HMA (remember that both trix and macd are constructed with EMA's)

Hi jtrader
I do like the pivot hi pivot lo study and do the job well dont they. will post the results of HMA based MACD if i get it right soon :cheesy:

Happy easter everyone

Don

Trading intraday price retracements/waves

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