Hi, I use a similar method, but on a longer scale, used it for some time. I use 1 hour chart with 5,10 & 15 ema's. Same ema's on day chart.When ema's cross on hour chart in same direction as day trend, I enter and I exit when hour ema's cross. It simlpe, but makes me profits. Hope this is of some use.
Hi, I use what is called the bow tie system. I wait for all ema's to cross, then be in order ie. 5>10>15. if uptrending. Once crossed, I wait for the first price bar correction. ie the low of the price bar is lower than the previous. This limits wipsaws, but reduces trades. I deal on the Dow Jones index and this provides me on average 2 trades per week. If you have any other ideas to reduce wipsaws, i'm interested
Yes, take a look at your charts and search the archives here for "dow intraday".... It can be seen that when the price on the dow 1 min chart is within +/- 20 points of the 100EMA, then this defines very clearly a "keep out" band, i.e. don't enter a trade within this band.
Whipsaws are a problem with the ma crossover system.but they can still be handy for some people if you use them to manage your trade and understand the market your trading well.
If you notice this system makes a point of only trading the US in the morning and in the afternoon.This is where the strongest moves are.When it gets to lunchtime get out because you'll be whipsawed.
There was a chap on www.siliconinvestor.com called Thomas Carr a couple years back who had a realy popular thread which had a ma crossover system.It had a realy big following,it might still be there.It made big profits on volatile Nasdaq stocks.You were always in the trade either long or short.The key seemed to be picking the right stocks and this is where the thread helped.The results were extremely good.If youre into this type of trading check it out.I think the thread was called "befriend the trend" by Thomas Carr
It got me interested so i just checked it out and its still there.Its grown and added options and daytrading.Plus they've opened their own web site at www.befriendthetrend.com stating that their sytem makes 316% annualized returns?
Just for interest if anyone takes this further and looks into befriend the trend could they post their findings on the thread.Especialy if they start earning lots of profit!
A level 2 Screen is the ability to see underlying orders in a stock that exist beneath the inside bid and ask.Seeing these orders gives an indication outside the inside market price of players POSSIBLE intentions.
A level 2 order book exists in the UK but it is very far behind in its openess compared with the Nasdaq.
The Nasdaq level 2 screen has the advantage that,firstly it can be viewed on volatile Nasdaq stocks that give traders the chance to earn large short term profits.It not only enables them to identify each individual market maker and watch their trading intentions,but through an ECN it allows the trader to participate on the screen as if he/she were a market maker themselves.
Watching the true market action and being able to use direct access into the screen with a number of different orders allows the trader not only to get excellent fills on his trades but with skill learn how the stock is poised to move next before it appears on anyones chart.Making it truly an excellent trading tool for a daytrader.
It benefits ALL styles of trading in any time frame but is of exceptional use for scalpers who want to take very quick and small profits from the stock.Naturaly enough traders that use it are fiercely proud of their skill at being able to read and use it.They wonder with amazement why more traders dont check it out.As they say "trade what you see" and level 2 Nasdaq traders can see everything before it happens.Their direct access orders are probaly some of the quickest fills around getting them in and out in the blink of an eye.
Some of us try and be polite about other styles trading but we know we've got the best there is.
I hereby award you this months T2W prize for gobledegook.
It took me a while to work it out.
"A level 2 Screen is the ability to see underlying orders in a stock that exist beneath the inside bid and ask.Seeing these orders gives an indication outside the inside market price of players POSSIBLE intentions."
That's scared off a few peeps m8.
All the best.
Alternative choice to prefer different selections from any alternative outlook.
Re What is a level 2 screen.Sometimes a picture is worth a thousand words.So here is a picture.I will also try and keep this simple.
All this software is free from your broker.
On the left is an intraday chart of the stock.In the middle is the level 2 screen with the order entry box on top.The inside market is trading at $16-$16.01.On the right is the time and sales showing the trades going off and underneath is the island book which is one of the biggest ecn's.
As you can see you can view the underlying market underneath that inside quote.
Nice, so here's some relevant questions.
From the L2 screen, is it telling you support is at 16$ and why? Or is the L2 screen telling you support is at $15.90?
From a TA point of view, we see a tripple bottom at 15.90, and maybe (if other indicators were shown) some positive divergence or other confirmation....
Are the "shares" numbers 1 share, 100 shares, 1000 shares or what?
If you wanted to go long 500 ( assuming it's at support) , "instantly", would you place an order on Island at $15.99? Would you in fact get instatly filled? Or would you put an order in at ,say, $16.05, knowing that at that value, the reversal is confirmed.....