Index Swing Trading

[idaxtrader]

Does anyone have any new ideas of relevant indexes that can assist in swing trading the Es or Ym. Using esignal ticker symbols I currently use the Nya (Nyse comp), Ny.id (Nyse 100), dwc (wilshire 5000),vle (Value Line),oex (s&p 100), and b400 (barrons 400). And of course its necessary to keep tabs on the Es (s&p 500),Ym (DJ 30),Nq (Nasdaq 100),Ab (russell 2000), and Mc (s&p midcap 400) future contracts. The question is, is there any other indexes that I'm forgetting about here that can add value

 

[timsk]

The question is, is there any other indexes that I'm forgetting about here that can add value

I would have thought you've got your work cut out with this lot idax', without wanting to add more! A few years ago in Traders' magazine there was a article by Oliver Velez of Pristine.com fame. In it, he recommended the NYSE tick indicator. I guess it's of more use to day traders than it is to swing traders - but, worth a look nonetheless? He also recommends an index he refers to as the 'Pristine Mighty 5'. They are: C, EBAY, MSFT, GE and GM. Given the recent turbulence in the banking sector and the effect of the credit crunch on Citigroup, perhaps the inclusion of this giant needs updating? Even so, the logic behind the 'Mighty 5' is that they help traders to look beyond the broad averages and focus on stocks that often lead the market rather than mimic it. Interpretation of the 'Mighty 5' is fairly self evident. When MSFT and EBAY are strong - go long technology stocks etc, etc.
Tim.

 

[2George]

If you stretch too far you will fall over. Stick to a smaller amount of indices and use this strategy for swing trading.
1. Trendlines using open prices only (forget all candles that are of a opposing colour and spikes)
2. Put them from the bottom or top candle using two longer term ema's as the guide for the timeframe chart you choose.
3. These trendlines will look like a fan (no, I don't want any comments about propretory fans)
4. When the fan has hugely varying angles then look to enter a swing.
If you understand and use this system you can live comfortably from 3 or 4 indices.
You don't need quantity.
George

 

[timsk]

Hi George,
Sounds interesting. Would you care to post a chart illustrating the concepts outlined in your post - a picture paints a thousand words . . ?

Tim.

 

[2George]

How do I do that?

 

[2George]

the swing reversal.

Attachment is an illustration of my earlier post of how to find a top or bottom of a chart - the swing reversal.
George

 

[timsk]

Attachment is an illustration of my earlier post of how to find a top or bottom of a chart - the swing reversal.

Hi George,
Thanks for posting the chart illustrating your earlier post. Broadly speaking, I'm in the naked trading / darkside camp, utilising price and volume and little else. For me, there are so many trendlines and EMA's on your chart that it hinders rather than helps my understanding and interpretation of what's happening. Suffice to say, I can't make head nor tail of it and, as such, I've no desire to start layering my charts with mountains of indicators. But hey, if it works for you, far be it from me to criticize! Horses for courses and all that.

Tim.
I've attached George's chart from his post to mine, as it's a Word doc. and this makes it easier for other members to view it - i.e. saves openning MS Word!