how to use the following indicators?

[andrewmooton]

Hi there,

I was reading another post on t2w about the following indicators:

1. EMA
2. keltner channel - outer
3. keltner channel - inner
4. parabolic stop
5. money flow index

Apparently, these TA 'tools' can be used to generate buy and sell signals when trading intraday and i'd love to know how to use them myself.
So, if anyone here knows i'd love to know!

Thanks,
Andrew

 

[ChowClown]

Hi Andrew,

There are of course 1000's of sites you could visit, however i've also been looking into the same setup and came across http://www.chartfilter.com/reports/c19.htm for a quick study. Will you be using Ensign charting?

The Keltner channels help identify when the price is outside the 'expected' range, providing high probability opportunities, as well as plotting likely areas of more general support & resistance. MFI divergence will help you time entries/exits more accurately and the Parabolic Stop can be used as a trailing stoploss.

I'm testing a similar setup within FOREX; the Jury's still out.

Good luck, it might save you a few grand!!

 

[JonnyT]

Hi there,

I was reading another post on t2w about the following indicators:

1. EMA
2. keltner channel - outer
3. keltner channel - inner
4. parabolic stop
5. money flow index

Apparently, these TA 'tools' can be used to generate buy and sell signals when trading intraday and i'd love to know how to use them myself.
So, if anyone here knows i'd love to know!

Thanks,
Andrew

Hi Andrew,

You are refering to Porks post on TrendSignal

My understanding is tha the Keltner bands are used as support and resistance just like pivots. So basically you are looking for bounces or rejects at these points.

Money flow I suspect can be used as confirmation.

SAR is used as a stop once in a trade whenever I've seen it used (sometimes a reversal point).

You could always spend £2999 and BTFM from TrendSignal if you want to know how they trade using these indicators.

JonnyT

 

[TheBramble]

I was reading another post on t2w about the following indicators:

1. EMA
2. keltner channel - outer
3. keltner channel - inner
4. parabolic stop
5. money flow index

Apparently, these TA 'tools' can be used to generate buy and sell signals when trading intraday and i'd love to know how to use them myself.
So, if anyone here knows i'd love to know!

EMA is generally is used together with price. If the price is above you can read it as bullish or potential reversal; below, bearish or potential reversal. Useful eh? Actually some well respected members of these boards successfully trade EMAs so I'm being a little flippant here.

Keltner is another envelope system (like Bollinger bands). Price is 'more likely' to move within the envelope and trading opportunities may exists when it moves outside. Check out:-

http://www.arbtrading.com/keltner.htm

Parabolic SAR gives fairly reasonable exit points (or entry points if you've a mind)

http://www.trade10.com/parabolic_s&r.htm

MFI - same as RSI but with a volume component included

http://www.investopedia.com/terms/m/mfi.asp

I haven't indicated how you'd trade them and that's because you'll need to work out what it is you want from them. I don't think any two traders would trade the above combination of inds in the same way.

 

[TWI]

I have heard about following use but not sure if this is anything to do with TS system.
The Keltner bands are seen as support/resistance and are tied together with the moneyflow index. So if price on a lower Keltner support band and moneyflow trending up then buy or viceversa. Best to use various levels of moneyflow to delineate o/b and o/s try something like 10/30/50/70/90% horizontals as it is then easier to see where the indicator is in the range. The system is not so much producing buy/sell signals but rather indications of direction. Stops are placed outside of outer keltner bands and trades executed when price has broken back up or down through or bounced off these outer bands and moneyflow confirms direction. Other bands are areas of support/resistance within outer bands and used for stop adjustment or profit taking.
I have never used or tried this system so no idea if it works or not.

 

[andrewmooton]

thanks alot for the links and the replies!

 

[andrewmooton]

EMA is generally is used together with price. If the price is above you can read it as bullish or potential reversal; below, bearish or potential reversal. Useful eh? Actually some well respected members of these boards successfully trade EMAs so I'm being a little flippant here.

Keltner is another envelope system (like Bollinger bands). Price is 'more likely' to move within the envelope and trading opportunities may exists when it moves outside. Check out:-

http://www.arbtrading.com/keltner.htm

Parabolic SAR gives fairly reasonable exit points (or entry points if you've a mind)

http://www.trade10.com/parabolic_s&r.htm

MFI - same as RSI but with a volume component included

http://www.investopedia.com/terms/m/mfi.asp

I haven't indicated how you'd trade them and that's because you'll need to work out what it is you want from them. I don't think any two traders would trade the above combination of inds in the same way.

well, basically i'd want to trade them the same way as the TS guys trade them, but I dont have 3.5 grand to buy their product.

 

[JonnyT]

Use Sierra

well, basically i'd want to trade them the same way as the TS guys trade them, but I dont have 3.5 grand to buy their product.

Well use Sierra Chart with IB feed then

MoneyFlow IMHO is useless at least for the markets that I trade.

JonnyT

 

[andrewmooton]

Well use Sierra Chart with IB feed then

MoneyFlow IMHO is useless at least for the markets that I trade.

JonnyT

why? whats useless about it?