Indicators to use for daily Dow trading

[ctrimble]

I have been trying out various indicators at various settings to use when trading the DOW.Up until now I never bothered with indicators of any sort, but now I think they could be of use. I know that it has been said on these boards before now that what settings are used depends on the person using them and this differs from person to person, but I would like to know what would be considered the average settings for Stocastics and Directional Movement (ADX) for trading the DOW on a daily basis.

Also does anyone trade the DOW using either 5 min or 10 min. charts? I find using this combined with the stocastics and ADX gives fewer but possibly more reliable signals.

Any help will be appreciated.

CT

 

[rossored]

Yep, I trade the Dow with 5 min charts - much less noise than a 1min. But I don't use indicators, sorry.

 

[wisestguy]

use a well worn 10p piece .

heads you buy , tails you sell .

make sure it's well worn otherwise it's 7 years bad luck.

 

[trendie]

use a well worn 10p piece .

heads you buy , tails you sell .

make sure it's well worn otherwise it's 7 years bad luck.

wisestguy is, of course, having fun with you.

we all know a spanish 500-peseta coin gives better signals.

 

[haleh]

i use 5 minutes & 15 minutes charts for dow & 5 1 3 for stocks 15 minutes chart & 10 or 14 for adx 15 minutes chart

 

[ducati998]

Indicator #1
$TICK..........For a long entry, buy @ the most ( -4 ) heavy selling point on an intra-day real time $TICK, at a 30mins setting.

Indicator #2
$SALES..........Looking for a divergence with PRICE, so to buy long, PRICE is making lows, with heavy BUYING as shown by $SALES, again intra-day, real time, on a 30mins setting, this indicates ACCUMULATION.

Indicator #3
TRIN.............Looking for a long entry, again look for highest # of stocks falling, and enter long.

If you combine all of the 3 above with a Level2 analysis, although not really necessary, and match them to a traditional chart based indication of support, exiting at the exact opposites, on a timeframe you like...........I personally used to use a 180mins chart with 17, 35, 80 EMA's.

Trend days can however be a little tricky to stay in the trade, trailing stop is one way, but individual choice.

cheers d998

 

[roguetrader]

$SALES..........Looking for a divergence with PRICE, so to buy long, PRICE is making lows, with heavy BUYING as shown by $SALES, again intra-day, real time, on a 30mins setting, this indicates ACCUMULATION.

D998, what is $SALES, means nothing to me or my charting software?
Thanx

 

[SOCRATES]

The thing is, none of it makes any coherent sense, charting software or no charting software. All of it, absolutely all of it, is nonsense.

(Now I can expect a tirade for this.....couldn't resist...)

 

[ducati998]

ROGUE,
$Sales is a real-time monitoring of "TIME & SALES" that does all the arithematic for you.
You would see price trade something like the following;

$50, $49, $48, $47.....................
$Sales would show .......+$100K, +$90K, +$120K, +130K............

So what you get is a divergence, PRICE is trading lower, pushed down by Market Makers, but the buying pressure is apparent in the realtime cash flow of TIME&SALES.

Combined with other indicators mentioned, gives you a look at the underlying tactics of MM.

cheers d998

 

[SOCRATES]

ROGUE,
$Sales is a real-time monitoring of "TIME & SALES" that does all the arithematic for you.
You would see price trade something like the following;

$50, $49, $48, $47.....................
$Sales would show .......+$100K, +$90K, +$120K, +130K............

So what you get is a divergence, PRICE is trading lower, pushed down by Market Makers, but the buying pressure is apparent in the realtime cash flow of TIME&SALES.

Combined with other indicators mentioned, gives you a look at the underlying tactics of MM.

cheers d998

No it does not. Buying pressure is not determined in this way. This could be persistent selling downwards in expectation of further lower prices. You make assumptions which are potentially incorrect. You would benefit by discussing this with DB Phoenix who knows all there is to know about buying and selling pressures. Ask him. I would love to see the pair of you discussing this.....And if you could persuade the Bramble to join in as well, it would be even bettter still.

 

[ducati998]

SOCRATES,

How would you know?
From the depths of the Star Chamber, visualising your prices utilising your visual mathematics.
Obviously you are passing comment yet again on a subject on which you know nothing, understand even less, and make really basic novice mistakes.

Possibly you have more information on the FOMC and it's relation to the debt and equity markets.

Have you ever actually traded real money........or even play money?
You have absolutely no conception of how markets are structured.
This lack of structural information directly impacts your understanding of the Function of markets. Without an ability to analyse the structure and function, or the inverse, you are wasting my time.

$Sales, $Flow, and it has other names can be viewed in real time by anyone who has the function as part of their trading platform.
When I used it , it was part of RealTick, via Terranova.

If you sit and just watch it intra-day, you will observe for yourself the divergences.
Did I say it was 100%. I don't believe I did, I said use it in conjunction with other indicators, and chart based levels.

No it does not. Buying pressure is not determined in this way. This could be persistent selling downwards in expectation of further lower prices. You make assumptions which are potentially incorrect. You would benefit by discussing this with DB Phoenix who knows all there is to know about buying and selling pressures. Ask him. I would love to see the pair of you discussing this.....And if you could persuade the Bramble to join in as well, it would be even bettter still.

I would no more discuss it with old DBP, as a Price & Volume Guru, who cannot even define the relevance of PRICE really has nothing to offer. I shall also refrain from discussing it with a fantasist such as yourself. Thankfully I can more or less divorce myself from any further discourse with yourself, as your bubble has burst. You are now an object of ridicule from any number of other posters, which is as it should be.

The Bramble I suspect is smart enough to give you and DBP a very wide berth, as shall I from now on, au revoir dimwit.

 

[roguetrader]

ROGUE,
$Sales is a real-time monitoring of "TIME & SALES" that does all the arithematic for you.
You would see price trade something like the following;

$50, $49, $48, $47.....................
$Sales would show .......+$100K, +$90K, +$120K, +130K............

So what you get is a divergence, PRICE is trading lower, pushed down by Market Makers, but the buying pressure is apparent in the realtime cash flow of TIME&SALES.

Combined with other indicators mentioned, gives you a look at the underlying tactics of MM.

cheers d998

Thanx I'll research that further.

 

[ducati998]

Rogue,

If you are trading DOW Futures, then they are a Derivative of the underlying.
To see $Flow/Sales in the Futures, you will have to watch the underlying stocks that the Futures derive their value from.

What I used to do was bundle all 30 stocks into one single $Flow, and trade the futures based on the AGGREGATE $Flow, along with $TICK, TRIN, and chart based support/resistance.

The advantage is that in an individual stock, the SPECIALIST, and market makers could drop or raise price irrespective of buying or selling pressure, if they had large orders to fill. It is this DIVERGENCE that $Flow picks up. By using the aggregate of all 30 stocks, you in essence are watching all 30 Specialists, and can trade the Futures off any divergence.

cheers d998

 

[commanderco]

Rogue,

If you are trading DOW Futures, then they are a Derivative of the underlying.
To see $Flow/Sales in the Futures, you will have to watch the underlying stocks that the Futures derive their value from.

What I used to do was bundle all 30 stocks into one single $Flow, and trade the futures based on the AGGREGATE $Flow, along with $TICK, TRIN, and chart based support/resistance.

The advantage is that in an individual stock, the SPECIALIST, and market makers could drop or raise price irrespective of buying or selling pressure, if they had large orders to fill. It is this DIVERGENCE that $Flow picks up. By using the aggregate of all 30 stocks, you in essence are watching all 30 Specialists, and can trade the Futures off any divergence.

cheers d998

Ducati, you say "What I used to do was bundle all 30 stocks"
What do you do now, may I ask?

 

[SOCRATES]

SOCRATES,


If you sit and just watch it intra-day, you will observe for yourself the divergences.
Did I say it was 100%. I don't believe I did, I said use it in conjunction with other indicators, and chart based levels.

Do you think I have the time and patience to sit there all day long and do all these idiotic things you suggest, together with indicators, for the goodness sake ? All of this is kindergarten stuff, and water under the bridge of years ago.

It is patently obvious if there is a dimwit on this site it is you, not me.

Other members may think there is some validity in what you post,
but, ultimately it is all nonsense, all of it.

 

[TheBramble]

No it does not. Buying pressure is not determined in this way. This could be persistent selling downwards in expectation of further lower prices.

A possibility. One of many.

.....And if you could persuade the Bramble to join in as well, it would be even bettter still.

Seems you have done that yourself Bertie. And why not. We go back a long way...

But listen. I thought I made it quite clear in my final session with you and 'the others' that I could not continue to support you 24X7. You need to try this stuff yourselves or you'll never reap the benefits that experiential learning provides. Leave the boards alone for a bit and try some real trading - not the paper stuff we've been doing in the box room (sorry, Star Chamber) - but the real thing. I set up an account for you at IG swIndex (I don't understand why you found the account paperwork so confusing) with controlled stops so you shouldn't feel scared. Just start with £1/pt on the DJ (that's the DOW-JONES thingy we talked about?) as I explained.

Go fly my little bird - I will be here to catch you should you falter.

Regards to all at MKULTRA As Usual.

And Isolde says thanks for the home-made scones - delicious.

 

[SOCRATES]

A possibility. One of many.


Seems you have done that yourself Bertie. And why not. We go back a long way...

But listen. I thought I made it quite clear in my final session with you and 'the others' that I could not continue to support you 24X7. You need to try this stuff yourselves or you'll never reap the benefits that experiential learning provides. Leave the boards alone for a bit and try some real trading - not the paper stuff we've been doing in the box room (sorry, Star Chamber) - but the real thing. I set up an account for you at IG swIndex (I don't understand why you found the account paperwork so confusing) with controlled stops so you shouldn't feel scared. Just start with £1/pt on the DJ (that's the DOW-JONES thingy we talked about?) as I explained.

Go fly my little bird - I will be here to catch you should you falter.

Regards to all at MKULTRA As Usual.

And Isolde says thanks for the home-made scones - delicious.

All this is new gibberish is it ?

 

[TheBramble]

All this is new gibberish is it ?

No. It's identical to all the previous posts with the same sequence of letters and spaces.

 

[SOCRATES]

Bramble, you talk nonsense as usual. But you are funny.

 

[schoe]

Bramble, you talk nonsense as usual. But you are funny.

Pot, kettle, black.