Jay,
When New York opens the DAX future will follow, ie react to, the Dow cash almost tick-for-tick 99% of the time.
For scalping, I find a two-minute bar with 9-period simple moving average for DAX and Dow pretty reliable. The ma is the support and resistance.
A 10-minute bar with 9-period sma for both acts as a further confirmation and leading indicator - if the ma is broken, the 2-min usually follows.
During European trading hours the DAX charts can be used as their own reference, if you see what I mean.
Grant.
When New York opens the DAX future will follow, ie react to, the Dow cash almost tick-for-tick 99% of the time.
For scalping, I find a two-minute bar with 9-period simple moving average for DAX and Dow pretty reliable. The ma is the support and resistance.
A 10-minute bar with 9-period sma for both acts as a further confirmation and leading indicator - if the ma is broken, the 2-min usually follows.
During European trading hours the DAX charts can be used as their own reference, if you see what I mean.
Grant.
grantx said:
Hi Grant -- Thanks for publishing your method. I don't quite understand the bit on the 10 minute bar. If the ma is broken on the 10 minute won't the 2 min. have already led this event ? You state that the 2 min. will follow. I am confused sorry for my ignorance but can you expand on that a little ?
Thanks in anticipation.
KLW,
The 2-min sometimes leads the 10-min, but look at the cash DOW in the attached doc. Done this minute. You may have to scroll up.
The 10-min can be used for further confirmation of a trend or additional support/resisitance. Then again, I suppose you could use any longer time-frame for this.
Grant.
The 2-min sometimes leads the 10-min, but look at the cash DOW in the attached doc. Done this minute. You may have to scroll up.
The 10-min can be used for further confirmation of a trend or additional support/resisitance. Then again, I suppose you could use any longer time-frame for this.
Grant.
grantx said:
Thanks for that Grant --- so if I understand you correctly even though the 2 min. has broken the mav. caution should be the watch word as it is approaching the mav on the 10 min. chart ( resistance ) ?
If I have understood that as correct then when would you start looking at going long ? Would it be when an up bar closes on high on the 2 min. chart above the mav. and the 10 min. chart mav is broken to the up side ? Or do you have some other signal ?
Thanks for everything so far.
KLW,
I’ve been developing my own system for generating buy/sell signals – almost finished. However, I expect to refer to the 2-minute chart for timing of entry/exit, eg if I have a buy signal but the 2-min is starting to weaken I may hold off. Regardless of how good a system is, a buy signal is no good if the market is falling. I’ll keep you informed.
For short-term trading – minutes – the 2-min ma is pretty reliable for support and resistance levels.
Re the 10-minute, if this is weakening/falling (below it’s ma, can’t break above its ma, for example) but the 2-min is rising, I would interpret this as developing or further weakness and remain cautious.
Others may have different – and equally valid - interpretations.
Grant.
I’ve been developing my own system for generating buy/sell signals – almost finished. However, I expect to refer to the 2-minute chart for timing of entry/exit, eg if I have a buy signal but the 2-min is starting to weaken I may hold off. Regardless of how good a system is, a buy signal is no good if the market is falling. I’ll keep you informed.
For short-term trading – minutes – the 2-min ma is pretty reliable for support and resistance levels.
Re the 10-minute, if this is weakening/falling (below it’s ma, can’t break above its ma, for example) but the 2-min is rising, I would interpret this as developing or further weakness and remain cautious.
Others may have different – and equally valid - interpretations.
Grant.
nkruger
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Hello Peter,
Can you expand on what your entry rules are with all the MA's you use ?
Nick.
Chandra Shekhar
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Can anyone of you help me where I can find tick by tick realtime Dax intraday chart.
Looks good! Any viability on other timeframes???
Yes can work with 3 min and larger time frames but the stops can be larger as well.
I too would be interested if you could share more info... Specifically on what you look for on an entry.
Many thanks.
msatrader I deduced from the videos on youtube that the system is a 'stop and reverse' system. However you also talk about exits at the high (long) or low(short). Which is the exit you have used for your performance?
Also I was confused as to whether the system is mechanical or descretionary? In your walkthroughs, you seem to be taking some descretionary decisions.
Lastly, do u have real brokerage statements ?
Thanks,
Imran
Also I was confused as to whether the system is mechanical or descretionary? In your walkthroughs, you seem to be taking some descretionary decisions.
Lastly, do u have real brokerage statements ?
Thanks,
Imran
It is a stop and potential reverse depending if the trend indicator is in agreement with the direction of the reversal. Once a position is entered you can hold until stopped or until you hit what we call an auto - gain point. For instance, in the YM if we capture 100 points on a single trade the position can be exited without waiting for the final stop. If one hits 100 points on a single trade or accumulates 100 points or more on several trades then they can end their trading for the day. The exits used in the performance are whichever comes first - 100 points or stop out. The only times we have recorded trades beyond the 100 points are when someone in the trading room actually captured more than the 100 points. For example, one trader captured 475 YM points on a single trade. The Scalper's Gold trade actually went for about 700 points. We don't take credit for the 700 points in the performance record but we will take credit for more than the 100 auto- gain since someone actually did better than the 100 points. It is a discretionary system in that you can choose whether or not to trade Fed day or options expiration etc or you may or may not use the auto-gain. Other than that, all the signals for entry and exit are given in real time. The performance results are based on trading with the rules I described above. Some choose to take trades in different markets. For instance, they may take a trade in the Dax after the NY open and the next trade they take may be in the Russell. So it is up to the individual and their trading plan but again, the performance results are based on trading one market with the rules above. I do have real brokerage statements and I have showed some of them from time to time in the trading room for training purposes etc. The problem I have found is that how I do has no relation to how someone else will do. I stick to the performance record on the site. All the signals can be checked as they are the same for everyone so at the end of the day everyone knows if the system made money or not. It is pretty transparent.
Thanks for the questions,
JM
msatrader
Thanks for the questions,
JM
msatrader