shadowninja
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Try Exponential MA. Market open does make sense in a way because it's unlikely to range tightly; likewise during news. Wouldn't say it's necessarily wise to trade during those periods, mind, but S and R levels don't seem to hold so well during those periods.
Right I've thought about it done a bit of research and a bit of testing.
I'm now using EMA5 and MA10 both for entry and exit with no monetary targets unless it's an 8am trade where the monetary target is 15 points.
I made one trade today between 8pm and 9pm and gained 53 points with this new strategy. Luck maybe but I won't base the success of that strategy there. Oh I'm using 5min chart only and my stop loss is set at 20points which most of the time won't reach as I'd prob exit the trade myself.
thanks for your advice guys. So I looked at addressing the problems of lagging indicators at the ones i was using enters you too late sometimes in a trade and also restrict profits.
I'm yet to test this in a sideways market. I won't trade between 11 and 12.45-1.00 as there is not much activity in the FTSE100.
All comments, questions, critisizm, suggestions welcome!
Viks
I'm now using EMA5 and MA10 both for entry and exit with no monetary targets unless it's an 8am trade where the monetary target is 15 points.
I made one trade today between 8pm and 9pm and gained 53 points with this new strategy. Luck maybe but I won't base the success of that strategy there. Oh I'm using 5min chart only and my stop loss is set at 20points which most of the time won't reach as I'd prob exit the trade myself.
thanks for your advice guys. So I looked at addressing the problems of lagging indicators at the ones i was using enters you too late sometimes in a trade and also restrict profits.
I'm yet to test this in a sideways market. I won't trade between 11 and 12.45-1.00 as there is not much activity in the FTSE100.
All comments, questions, critisizm, suggestions welcome!
Viks
Thanks for the advice Jaet I'm using only 5min chart which i'm fine with at the moment. I need to learn more of how to identify a sideways market early. I think my new strategy with the use of price action, breaks of highs and lows will work much better. I've begun to use this and has kept me out the market in a few sideways markets that I identify. I get in at the break after the high or low has been tested.
I'm still on a steep learning curve which I love but am hungry for more and more information on price action, breaks of highs and lows.
What strategy are you using Jaet if you don't mind me asking. What market are you looking at? and what time frame?
Viks
I'm still on a steep learning curve which I love but am hungry for more and more information on price action, breaks of highs and lows.
What strategy are you using Jaet if you don't mind me asking. What market are you looking at? and what time frame?
Viks
A 5min chart does not usually give you the picture of the market, I use 6 charts for the FSTE index, but I suggest you start with around 3 or 4. 1,3,10 and 30 usually gives a good indication where the moves will come. Depending on volatility I will adjust my stops, for example today is fairly stagnant so I will use 10 point stops, but with the US market opening tomorrow after a 3 day break I will set a 20 point stop.
I use a combination of methods, including EMA's, Stochastics and Volume. Have a fiddle with your software and find a good way to trade for you. You will get better with experience.
Do not blow your account, always keep money management in your head, stay in the game...
I use a combination of methods, including EMA's, Stochastics and Volume. Have a fiddle with your software and find a good way to trade for you. You will get better with experience.
Do not blow your account, always keep money management in your head, stay in the game...
I am testing afew different strategies on top of my own to try and get better signals, MAs work good in trending, and maybe use another indicator for ranging markets, but the difficult bit is finding out early enough whether the market is trending or ranging before its too late...
Hi,
Did ok, nothing to be impressed about, as sometimes with MAs alone you can get caught out if your not watching the whole picture.. Testing afew other things at the moment...
Also triend with EMA, similar results but good enough with added confirmation..
Hi Vicks,
Hows the new strategy going.?
Hi
The new one's much better than the old I'm also using trailing stop loss so I'm locking in profits and mimimizing my losses which is great. Haven't had the chance to trade it properly for the day yet as I've been at work and the spreads have not increased prob due to the american holiday so not trading this evening either.
I've reduced the lag so I'm not too late for an entry and am using support and resistence levels to identify breaks. Got 10points in this morning between 8 and 8.20 but then had to leave for work. I reckon I would've taken 40 - 60 points or so today depending on how disciplined I was.
I'm trying to understand price action more and feel that price action and MA's are the way to go for me.
So how did your trading go today and what strategy are you using at the moment and what market?
The new one's much better than the old I'm also using trailing stop loss so I'm locking in profits and mimimizing my losses which is great. Haven't had the chance to trade it properly for the day yet as I've been at work and the spreads have not increased prob due to the american holiday so not trading this evening either.
I've reduced the lag so I'm not too late for an entry and am using support and resistence levels to identify breaks. Got 10points in this morning between 8 and 8.20 but then had to leave for work. I reckon I would've taken 40 - 60 points or so today depending on how disciplined I was.
I'm trying to understand price action more and feel that price action and MA's are the way to go for me.
So how did your trading go today and what strategy are you using at the moment and what market?
trader_dante
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Mate, be aware of a few things:
1) Equities seem to me to revert to the mean more often that not - that means that the kind of sharp moves that cause moving average crossovers are just as likely to reverse the moment you enter.
2) You will need to test this for a significant period of time before concluding that it works. A system can work excellently in one type of market but when that market behaviour changes, the system can very easily stop working.
I would personally forget moving average crossovers and concentrate on reading the price action.
Look at previous HIGHS and LOWS on the daily, hourly and 5m charts. Look for patterns. Think about other FTSE traders and where they might get in and if they get in where they might have to puke if the trade doesn't work. Look at support and resistance. How is the market acting at these levels?
This is honestly more likely to make you consistent in the long run because it will work in all markets (trending and non trending).
At my prop firm there are huge number of FTSE traders - we do a great deal of the daily volume so its guys like the ones I sit with that will be causing you to win or lose. They don't use moving averages or indicators...they trade in the way I explain above...and if they are moving the markets...then you need to watch the same things they do. They are, after all, the people you will be competing against.
Hi Dante
to comment,
1. I have noticed this happen that's why I'm moving towards price action and have begun to learn it.
2. I've thought about this. Once this markets begins to behave differently my strategy won't be consistent.
I've been looking at previous highs and lows on the 5min but why do you also suggest daily and hourly?
When I look at breaks I notice that sometimes when a break occurs the price moves back within range of the identified support and resistence and then may break again and move off most a lot of the time it'll trend into the direction of the first break.
Oh and thanks for the advice and comments.
Viks
to comment,
1. I have noticed this happen that's why I'm moving towards price action and have begun to learn it.
2. I've thought about this. Once this markets begins to behave differently my strategy won't be consistent.
I've been looking at previous highs and lows on the 5min but why do you also suggest daily and hourly?
When I look at breaks I notice that sometimes when a break occurs the price moves back within range of the identified support and resistence and then may break again and move off most a lot of the time it'll trend into the direction of the first break.
Oh and thanks for the advice and comments.
Viks
trader_dante
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The bigger players will look at the bigger levels. You absolutely must know what your market looks like on a daily TF minimum and it always helps to keep an eye on the hourly - all the locals I know do so. You can't just watch a 5m chart - you need to put the moves you are playing for in perspective. If a trend is about to start for the day because of an important pattern completion or breakout on a higher TF, why do you want to take just 20 ticks out of it? Always make sure you know where things could go. The best traders are those that can identify the short term moves and scalp but also know when to run a position. If you only look at the 5m you will never get to be able to do both.
I see what you mean.
I've just been looking at the hourly chart and was looking at support and resistence levels.
I could see exactley what you mean but need to begin to think about how to play them as well.
I'll try it out for the daily too.
Looking at the hourly on the FTSE100 what I found was the low is being tested and the market may break the low if it does i'm short.
Maybe you can have a quick look...
Support I've drawn in at 4140 and resistence at 4335. If there is a break of the low I'll be looking for the FTSE to 4050 and if it continues i'd be looking at 3950. What are your thoughts?
Hope that picture uploaded!
Viks
I've just been looking at the hourly chart and was looking at support and resistence levels.
I could see exactley what you mean but need to begin to think about how to play them as well.
I'll try it out for the daily too.
Looking at the hourly on the FTSE100 what I found was the low is being tested and the market may break the low if it does i'm short.
Maybe you can have a quick look...
Support I've drawn in at 4140 and resistence at 4335. If there is a break of the low I'll be looking for the FTSE to 4050 and if it continues i'd be looking at 3950. What are your thoughts?
Hope that picture uploaded!
Viks
Check what the FTSE did.... nice!
Fell to 4050 nice 80 points or so there.
Got in very late today so tired! I'll post up more hopefully tomorrow.
Anythoughts on how I've plotted the support and resistence levels above? Do they look significant enough?
Fell to 4050 nice 80 points or so there.
Got in very late today so tired! I'll post up more hopefully tomorrow.
Anythoughts on how I've plotted the support and resistence levels above? Do they look significant enough?
Fantastic look what happened ftse breaks the low of 4140 and breaks the second support line at 4050 and takes it's support at 3950.
Resistence is now at 4050 and support at 3950. Looking for a test of the resistence or support or the break of either. If it breaks the low I think we're looking at the FTSE100 to go near the november lows.
Viks
