shortterm price movement indicators

bbmac

Veteren member
3,584 788
hi

does anyone have any advice on possible short term movement indicators of price (ie up or down in the next ten minutes to 1hour,) or useful chart set ups for such. I am working on a scalping system and will share the results with any respondants.

thank you
bbmac
 

stevet

Established member
917 5
if you are not working at the exchange with the advantages of being at the exchange - it would be real real hard to be a scalper - but that does not mean you cannot just exit a position early and pocket a lot of small wins

so just use the normal entry position that you would use - but exit if you feel the position weakens
 

madasafish

Well-known member
470 5
Try True strength index...

I use a 5,8,2 and a 5,13,3..

when the 58 crosses above the 513 (and confirmed with RSI) then up.. .. when down and below 0 down..


VERY susceptible to small moves so you must use another indicator to confirm it..
 

ivor31

Member
80 1
I find just using yesterdays high and low values combined with overall mkt direction,macd osc and visual display of the order book works fine. I scalp the days highs and lows this way.The more news and greater volume the better.
 

stevet

Established member
917 5
scalpers buy at the bid and sell at the ask, are right on top of the action and pay cents per trade - if you cant do that - you will get burned trying to scalp
 

Naz

Experienced member
1,391 24
Scalpers dont only just buy the bid and sell at the ask on the Nasdaq because after fractions were eliminated the ecn's came in and closed the spread so tight that in many cases the spread all but disappeared and in many completely disappeared.
They use their direct access skills to work the order.
 

stevet

Established member
917 5
Naz

there is a difference between scalping or just trading for small amounts

people like to call themselves scalpers because it sounds sexy, but just looking to take small profits off market is not scalping

spreads on nasday stocks only disapear, or get crossed when no one is sure which way the market is gonna go and that may not be the best time to take a trade - expecially if you are working off normal delayed charting data - and as i have said before - ask and bid pricing comes with a heavy timing delay

one of my feeds is data only and is as fast as you can get and it still has a sizeable delay which i can see by the way that options respond to the stock price changes ahead of the stock price data feed changes
 
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Trader333

Moderator
8,655 981
stevet,

I have never experienced this delay you talk of in bid and ask prices appearing on the Level II screen and in fact quite the opposite. Whenever I place an order I do so in such a way that it gets displayed and there is usually something a little different about it so I can see if it has appeared. The moment I hit the transmit button its there with not even a 1 second delay. Are you talking about different instruments because I just dont see this for my orders on Nasdaq stocks ?


Paul
 

stevet

Established member
917 5
Trader333

that is interesting because i know you have said that before - and this delay is real - i wonder if its to do with when you take trades and how often and i guess you mean you are setting orders away from the inside bid and ask on a specific exchange? what are you looking at the order on?

i tend to only take a trade at a key point where the action is starting to build for a move, or during the opens and closes, and then the through put of data greatly changes - if you can imagine the ripple through of data at the different levels of L2 as all the different participants are changing price and size - any market wide moves have a hell of an effect on the bandwidth

and i guess also that what i might call a delay might not seem like a delay to someone else - but as i am looking at multiple markets, i see the ripple through of the effect of changes in priciing across the board, so even a fraction of a second puts you at a huge disadvantage, since you are then reacting to an event that is history
 

Naz

Experienced member
1,391 24
Stevet

I'm the same as Trader333 and do not experience any delay in my L2 data.I've been a Nasdaq scalper trading 200 times a day.How could i do that if i experienced a delay in my data.

I only ever found a problem once and that was in the first 15 mins of trading.The IT guy at the company i traded at told me the fault was the computer which he changed and the problem was solved.
 

stevet

Established member
917 5
Nas

you seem to be using past tense - and i am taking hundreds of positions each and every day now - with multiple l2 data feeds?

and we spend a lot of time with data suppliers hereing their problems with data delivery - so the data suppliers know they have problems - hence one of the most major just completely revamped their whole system becuase of it

and the problem has been increased as the use of level 2 increases coupled with the strains on the technical ssytems at the heart of all trading

and the fact you were taking hundreds of positons did not mean the data was right or wrong - but it would make a difference if the delay was part of what was causing you to lose - but if you were a bad trader - trading off late information - you might have ended up with winning trades!

all data is late and that is for sure
 

Naz

Experienced member
1,391 24
As a Nasdaq L2 trader i do not have any problems with my data.I'm still able to take trades before the move appears on a chart.I dont know if you're looking at the technical aspect of data transference or looking at it from a traders perspective.

If its from a traders perspective i think you're wrong and we shall have to disagree on the matter. ;)
 

stevet

Established member
917 5
Naz

i only know about the problem from a traders view - the technical stuff is just a pain - but i know i am not wrong from what i see each day on the screens - and i also know it from multiple data suppliers confirming it and explaining their problems and issues and how they are trying to impove it
 
 
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