Slow RSI entries

jonnyy40

Experienced member
1,329 11
I think scalping in the sense I understand it is impossible with spreadbets/futures.In Spreadbets you're never on the price.With futures the fills are NOT instant.So concentrating on a tick chart will only give you a tick.I think Grey1 is referring to shares(L2)?Maybe you can try it with one of these dow tracker funds?Chartman's idea of using a MA is to keep you(me) safe.The best thing to do is download T-Sim,Auto/Bracket trader and practice with a 'safe' system until you're consistently in profit?Or book a day with Mr.Charts/Naz if you want the Nasdaq route?
 

stoploss please

Established member
780 10
Maybe, we make things more difficult then they really are. The price action can hurt in two ways, by going against you or through time. I would say you would receive the most damage to your wealth and health during periods of time/price congestion. If you can eliminate those, you are then left with a move than will go either up or down. As we or odds player, you then rely on your analysis to point the direction. As for the spreads. There are ways of putting this spread bias in your favor but this takes practice and cannot be taught.

The key is, find out where the main battle in the price is being fought and only step up to the table after the beaten side are exhausted. You then grab onto the coat tails of the winners and hope you get a nice move out of it.
 

Bill

Active member
160 1
Dear all

This is superb response guys. I'll print the posts and use it as bedtime reading.

Bill
 

al-motor

Active member
249 0
stoploss pls-

you mention about congestions and keeping away fromm them- I think everyone wants to do that- But u would normally feel a congestion after a few bars have elapsed-

During that time, u could be whipsawed a few times- up and down.........

Any easy solution ?!
 

stoploss please

Established member
780 10
al-motor

Good question. I wish I had all the answers but this is how I see it.

What is an area of congestion. Well it can be one of two things imho. An area of consolidation after consistent trend. The break out of this consolidation should resolve itself by resuming the prior trend. Or an area of congestion could be a top or bottom at the end of a trend. Within a trending market, you expect to see a succession of higher lows and highs in an up trend and the mirror of this in a down trend. Trend lines can also be applied onto both the price action and the indicator you are using. A break of the trend line is an indicator that the price action is experiencing a change. Also, if you use chart tools like layered MAs or Bollinger Bands, any convergence of the averages or bands indicates congestion.

What I tried to do is look for possible areas were the price is either going to rest or reverse.

Fibonacci targets are important to me. I apply fib on hourly charts get an idea of what could happen to the over all trend and I also apply fib on a much more micro scale right down to individual waves found on my 3 and 5min minute charts.

I look for important areas of support and resistance in the Spoos, Nasdaq and Dow as there is a powerful inter relationship between the various markets. If say the Spoos are approaching a large round figure for instance 1000, I will try and asses what effect it will have on the Dow.

Double top and bottoms, found both in price and the indicator is one thing that sets the alarm bells ringing. Especially if in an up trend, we have a lower right peak and in a down trend a higher right trough.

Timing. I try and avoid trading the doldrums as that is were low volume and whipsaws are usually found.

I always had a problem of thinking in one dimension. ie I assumed that the price action is either up or down but never sideways. To get round this I constantly apply horizontal lines to the peak an trough's found in the price and the indicator. Breaks in these are just as important as typical trend line breaks.

Look for divergences in price and indicator an be prepared to stand aside until the battle has finished and the price can move smoothly again.

I hope I have answered your question. I am no expert and to be honest, I am still learning but this is what I have found of use thus far.

Kind regards
Andy
 

stoploss please

Established member
780 10
Three bounces and up

This is one way I play a tight range. I did not hit it this time. Yom Kippur and tension in the Middle East. Standing to one side today. Lets see were it takes us.
 

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stoploss please

Established member
780 10
How whippy is this

Hi

See the attached exit trigger as per the RSI. The original break out was a triangle with a flat top. According to Murphy, this is bullish at the bottom of a down trend. The RSI was used as a confirmation. The double top at resistance was confirmed by the RSI break. Not a great day to trade. No real trend means a lot of hard work. This could be more consolidation. Either way I am out of here. I need to call Mystic Meg.
 

Attachments

  • dowchart1.xls
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stoploss please

Established member
780 10
Possible long entry

Further possible long entry. Yet again, todays market is naff but
this is all good practice .

Please see attached.

Please note, this is how I trade. It will probably end up loosing my shirt. Any investment decisions you make should not be influence by my drivel.

Cheers
Andy
 

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  • dowchart1.xls
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