FTSE 100 intraday trading - JUNE 2003

kevin546

Established member
699 0
Hi ZigZag

Thanks for your comments and your views. I can understand taking note of the support and resistence levels especially as the floor does not have a computer to work from but are very aware of the previous high, low, close and open and it is not surprising that these levels do get tested. In fact this is something I might consider if I were to position trade holding for a few days to a month, although the set-up I have put together appears to work on any time-frame which is interesting. I have not tested it fully but have had the odd small dabble and its worked out rather well so I may not have the need to consider a different approach anyway.LOL What is important is what works for YOU and wat you are comfortable with. As I said in one of my earlier posts I thought CCI was going to be the bread and butter of my trading as it is for many others but in the end I have more confidence with the RSI and as such I am more proficient with it, so why change if its working well stick to it. So while I have posted at some length about my own trading it may not work for someone else.

This is something that I have considered together with Retracement levels and Fibonacci numbers but at the end of the day I want to avoid the system becoming to complex. The other thing I find is that you start following these levels and I have had a tendency to view them as if they are written in stone and when the price does not react to them I got caught out which I felt was unnecessary. Please don't get me, wrong support and resistence is an important factor it was just that I placed to much faith in them and in doing so got into a bad habit of not reacting to them as quickly as I would like for my own trading style.

They are more suited to the trend change trade I make and yes I would agree this approach does reduce your trades and so your costs and your risk by the lower number of times you actually enter the market. However I like to get the best of both systems by trading the trend and within the trend so I place a smaller deal for the trend because I give it a little more scope to develop yet my deals within the trend are controlled with a tight stop loss and generally if the deal is not working within 5 mins I close.

These deals are fast and furious and you will often find that within a couple of mins you are holding a profit and considering closing within 10 min unless I have caught a strong trend and my paper profit has sailed past 5 points without looking back; then I hold on and look for the next exit to appear. Usually these deals produce 2 - 10 points but some do go on to 30 it just depends what happens around the figure 5 for me.

With reference to your comments concerning the SMA/EMA and in particular the EMA as this is the trend analysis. When I was introduced to this particular tool I was advised that in the strategy the chap was using he would not enter a deal if the line was flat as this tended to indicate a narrow price range. You often see this around the lunch period and after hours. It is fair to say that during these situations there is going to be less trending price movements until the line starts to move one way or the other and so it is best to avoid trading during these times.

However, even during narrow price ranges applying the pivot system and or RSI/Band combination with a trend line assessment you can still make deals of 4 or 5 points and often more (lunch time maybe slow but it can offer a few deals if you are patient) but obviously the best times normally to trade are the first few hours in the morning and maybe the last few hours when the US has sorted itself out.

In respect of the 34 EMA it all depends how large the range is, if the range remains constant over a period then the line will appear flat and this will happen if the range is 5 points or 50. Obviously the lower the range the greater risk that your deal will not furnish profit and a high chance that if you get a profit it will not be much so the 2 min example you mentioned I would give a miss but the earlier one on the 5 min chart I would and did play yesterday and took some 5 pointers. I would not attempt it with SB but futures were fine. Just because the EMA line is flat there can still be good deals to be had from pivots and the trend, I do think this illustrates how to much emphasis can be placed on one indicator or style of trading and if this situation appeared outside of a general slow time then I would still consider pivot and direction signals but maybe reduce my target levels and concentrate on the current trend as this could still change during such a period.

Kevin
 

kevin546

Established member
699 0
Lambchops (are you anti other meats) LOL

Thanks for your comments and it does make sense to put it on another thread especially as I appear to be hogging the thread at the moment although these pages do not appear to generate as much interest as it used to, in posts anyway. I would not wish to type all this again or put it all together in a more presentable package it was just something I put down and then answered a few questions rather than a structured format.

Kevin
 

kevin546

Established member
699 0
Bonsai

Thought you might like to know apparently the Piper book is no longer in print and therefore unavailable unless the local library can get hold of a copy. Amazon still have it displayed but to check for updates so unless it is to be reprinted which I doubt looks like I missed the boat.

As a mater of interest have you used www.elliottwave.com and if so what were you thoughts.

Kevin

Ps To the rest I will stop hogging the page now.
 

ZigZag

Active member
123 0
Kevin: Thanks for your detailed reply. Im sure you have given food for thought to a lot of people even though they have not posted. Enjoy your weekend you have earned it.
 

Fluke

Well-known member
456 1
Kevin.
I agree with ZigZag,and I have copied all your charts and the complete trading plan you posted.
Thanks again
Best of luck Jon
 

kevin546

Established member
699 0
Just to complete the picture finally I have attached charts to illustrate like many set-ups they work on all time frames. I cannot access my Futures charts at the weekend so the charts are taken from one of the cash FTSE index, but close enough.

1m, 3, 10, 15, 30, 60, Daily to follow
 

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kevin546

Established member
699 0
30min
 

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kevin546

Established member
699 0
Daily - its just a matter of adapting to the different time frame in terms of how long you hold and when you take your profit but the SMA pivots, trend lines and failure swings or RSI extremes remain the same. On difference is that the RSI becomes more of a trendline in its own right the longer the time frame used.

Right unless I get a question that really is it now.

Kevin
 

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bonsai

Veteren member
4,106 11
kevin
EWI is a good site with lots of useful stuff.
Them main exponent of Elliott, who I follow is here.
<a href="http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID54819">Keller</a>

I wont post the charts because they are to big and for
U.S.A only.
 
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kevin546

Established member
699 0
Bonsai

Have not had a chance to go through the EWI site in detail but looks good if your interested in the EW approach which I am because it links closely to how I break up the day in trends.

I see what you mean about the 'Keller' charts again I need to go through his report in detail but I like the way it provides examples of intraday positions. All to often when reading up on the nuts and bolts of a particular study they only display it in the conventional form in historic charts rather than getting down to how to apply it in an intraday format. I have saved all the charts and text separately and look forward to a good read.

You previously mentioned the Proctor book on EW, while this will no doubt explain the theory in detail does it also help re Intraday examples.

The US does seem to have much more available to the private investor/trader and over here. Do you know of any site that produces such quality of EW intraday charts on the FTSE as this does appear to be sadly lacking. :LOL: Would you like to have a go here. I mentioned previously that when I am trading because of the strategies I apply I have to remain glued to the screen and therefore cannot take the time out to post here during the session unless I call it a day. A better medium for me to be in contact during the session would be some form of direct chat such as messenger etc without the need to type. In fact are you aware of a site called 'woodies' cannot remember exact web address but this was set up by a well respected US CCI scalper. You have access to chat but the facilitator is the main speaker during trading and is also trading so produces his own charts in real time for you to see and follow and listen to him as he makes his buys and sells. They work from the ES and take just a few points at a time and while it is not my cup of tea, basically as I do not wish to trade in the evening it is a brilliant way to trade and would be great if something like that was available for the FTSE.

Some others do cover the ESTX50 but not the FTSE and it is all about the use of CCI, in fact they become trained in working just from the CCI tool without reference to the price, thats the idea anyway.

Kevin
 
 
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