How To Make Money Trading The Markets.

foredog

Experienced member
1,879 313
OK, cool, wasn't sure if you meant that or some sort of dig at MR CHARTS as he does have his private forum.

(was going to be rather blunt if it'd been about the latter!)
 

alfiemal

Active member
112 4
Hi Mr Charts, how important is the level 2 time and sales in intraday nasdaq strategies? The chart patterns are very good, but its just that I have tried looking at nasdaq level 2 and TS before and it seemed way too fast and difficult to see what was going on. Do you think it could be possible to trade the chart patterns only and make a profit? Thanks
 

Mr. Charts

Legendary member
7,364 1,181
thank you very much for your replies, Mr Charts.

Regarding TXT, it came through on my news monitor shortly before the market opened, i put it on my watch list and traded it accordingly.
It is encouraging, for me, that I entered on exactly the same bar as yourself, even if I did not let all of it run as long as I should have done.
I know this thread is just for the one method, but, yes, I am a curious and interested to know how TXT came into your list?
thank-you once more for this most interesting thread.
notlob,
I'm sorry I didn't answer your question. I wasn't being rude, it just slipped through somehow.
I can't remember whether I saw it pre-market and didn't put it on my radar, though checking back on my news feed there was a pre-market story that day about committed bank credit lines. Looking back through the archive on my private site I alerted people to it at 2:41:35 pm UK time so I think I must have picked it up off my scanner as a substantial faller.
Hope that helps.
Richard
 

Mr. Charts

Legendary member
7,364 1,181
Hi Mr Charts, how important is the level 2 time and sales in intraday nasdaq strategies? The chart patterns are very good, but its just that I have tried looking at nasdaq level 2 and TS before and it seemed way too fast and difficult to see what was going on. Do you think it could be possible to trade the chart patterns only and make a profit? Thanks
alfiemal,
I'm not going to go into detail publicly about how I do this, but a lot of the time level 2 is just noise/insignificant. There are times when it is priceless because it tells you what is highly likely to happen BEFORE it does.
That becomes extremely difficult on very fast moving stocks, it becomes unreadable as you infer. However, on other stocks it is very readable at key points and that is when it is priceless for keeping you out of, just as an example, breakouts which then go on to fail. It's not infallible, but it gives me a huge edge.
Yes, it certainly is possible to trade the chart patterns only and make a profit, but the success rate won't be as high or the profits so substantial.
I view charts as being two dimensional; the third dimension is level 2 T&S; not always necessary, but sometimes a huge help.
Hope that helps,
Richard

PS In a sense it's about the speed of what is happening; sometimes it's too fast to read like a page in a book being turned every 5 seconds; with some stocks it's like having 50 seconds to read the page. I don't mean the screen remains unchanged for 50 seconds, I mean sometimes with some stocks you have the time to read what is going on. Don't assume all pages turn every 5 seconds just because you've looked at fast movers which do.
 

alfiemal

Active member
112 4
Thanks Mr Charts, I see what you mean, come to think of it the nasdaq stocks I was watching level 2 on were probably some of the larger unreadable stocks like Apple, Cisco etc companys that I knew the name of. I suppose with a little experience it would be easy enough to filter out some of the unreadable stocks with a scanner and concentrate on the slower higher probability trades!

Im interested in this method, as I would prefer high probability trades rather than what im used to fx, indices etc.. were its difficult to get any consistency!
 

notlob

Junior member
15 2
Many thanks for your reply, Mr Charts, I certainly didn't think you were being rude, as I'm sure you have 101 other things to do other than posting here!

Thank you for your answer, appreciated.

I was also interested in your NVDA trade that you posted. I also had NVDA on my watch list, but took the view it was not trending strongly enough to enter into a trade. But given a bit of hindsight, I can see exactly what you mean and perhaps I should be a bit more open to those sort of opportunities in the future.
 

notlob

Junior member
15 2
edit
I should just say that NVDA was trending, but the 1 min candles were not marching down in the most pleasing way of many of the trades you have posted on this thread.
 

Mr. Charts

Legendary member
7,364 1,181
See the opening comment post #257

I look at both 1 min and 3 min candles (and sometimes 5 min) and see opportunities for slower swing trades on 3 min which aren't there on the quicker 1 min.
Which is what you are saying :)
Richard