-oo0(GoldTrader)
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Spread Tools
Trading spreads are like anything else. You will be speculating acting on information not yet known. You need to be able to foresee events. For this reason trend following indicators that work great on stocks like Macd, or moving average crossovers, can only be used as confirmation in futures.
1. Momentum
2. Trend
3. Stops
4. Cycles
Your oscillators if you use them should be uncorrelated; otherwise they will turn at the same time. Joe Ross in his book on spreads and Seasonals does some work with Bollinger bands and I think it might have been RSI on spreads.
Parabolic works better than Bollinger, and Stochastics is much more refined than RSI. I have no way of knowing what is the best now a days with thinking computers.
What works for me is to find a Bullish “diversion - conversion,” in Lane’s Stochastics for entry, near a seasonal bottom cycle. Average up with Wilders Parabolic and use parabolic or trendlines as a simple stop. You can get length of expected trade, and targets using Elliott waves on well-made spread charts like those from Jerry Toepke's [FONT="]Weekly Spread Commentary.
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Trading spreads are like anything else. You will be speculating acting on information not yet known. You need to be able to foresee events. For this reason trend following indicators that work great on stocks like Macd, or moving average crossovers, can only be used as confirmation in futures.
I have written about this else where on the web. The very most important thing that you need to trade spreads consistently is well made seasonal spread charts that go back fifteen to twenty years. Anything longer if inconsistent may no longer be valid. These things to must change. When you can read, close only charts you will not need any indicators.
1. Momentum
2. Trend
3. Stops
4. Cycles
Your oscillators if you use them should be uncorrelated; otherwise they will turn at the same time. Joe Ross in his book on spreads and Seasonals does some work with Bollinger bands and I think it might have been RSI on spreads.
Parabolic works better than Bollinger, and Stochastics is much more refined than RSI. I have no way of knowing what is the best now a days with thinking computers.
What works for me is to find a Bullish “diversion - conversion,” in Lane’s Stochastics for entry, near a seasonal bottom cycle. Average up with Wilders Parabolic and use parabolic or trendlines as a simple stop. You can get length of expected trade, and targets using Elliott waves on well-made spread charts like those from Jerry Toepke's [FONT="]Weekly Spread Commentary.
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Attachments
Be very careful with these forex robots. Non of them can make money for you. You can use it perhaps as a tool which will help you to decide when to place a trade, but never let a robot to trade with your money. To be successful in forex you have to study hard about market, to spend lot of time watching charts and to choose good forex broker (more about brokers http://www.ac-markets.com/ im very happy with ACM)
richardserrano
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Hello guys,
i am posting my trading plan and i would really appreciate your comments and analysis of it , this works 70% of the time however it is missing something and I would like to make it perfect. with your help
Trading Plan
First I look out for patters of over bought or over sold conditions the example that i am going to give you is an overbought condition.
Second I wait for the stockastic crossover diversion into an overbought condition.
Thirdly I wait for the macd crossover going into a diversion, a histogram diversion or double head.
Fourthly if the moving average is going to cross over I wait until the crossover has finished then I set up my fibonacci, wait until the price breaks the resistance level then wait for a signal like a shooting star or a doji, then short and set my fibonacci again. i get out at 38.2% or if the market is very week at 50%. Obviously this works perfectly if you can short right at the top.
My question is does anyone know of an indicator which lets me know how high the price can go. I am not sure this type of indicator exists.
i would love to paste the chart but i dont know how to do it in link in pls contact me if you want, i will send and email to you with the charts attached
i hope that your trading plans are going well.
RICHARD
i am posting my trading plan and i would really appreciate your comments and analysis of it , this works 70% of the time however it is missing something and I would like to make it perfect. with your help
Trading Plan
First I look out for patters of over bought or over sold conditions the example that i am going to give you is an overbought condition.
Second I wait for the stockastic crossover diversion into an overbought condition.
Thirdly I wait for the macd crossover going into a diversion, a histogram diversion or double head.
Fourthly if the moving average is going to cross over I wait until the crossover has finished then I set up my fibonacci, wait until the price breaks the resistance level then wait for a signal like a shooting star or a doji, then short and set my fibonacci again. i get out at 38.2% or if the market is very week at 50%. Obviously this works perfectly if you can short right at the top.
My question is does anyone know of an indicator which lets me know how high the price can go. I am not sure this type of indicator exists.
i would love to paste the chart but i dont know how to do it in link in pls contact me if you want, i will send and email to you with the charts attached
i hope that your trading plans are going well.
RICHARD
-oo0(GoldTrader)
Well-known member
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When you are long, you hope that there is no limit to how high the price can go.
When an oscillator goes to 100% that does not mean the price is at 100%. It just means that based on the data that you have been using whatever forces you are watching are 100% of that time period in the past. The Future is unknowable until it happens. Prices can hit the oscillators top, blow through and come back and bust through it again. (Double top).
If you look at a seasonal chart you can get a pretty good indicator of how high the price will go, and by what date to expect it. If it goes that high before first notice day, lighten up. Odds are it will not go that high after the seasonal runs out. So you have a useful projection built right into your charts.
When an oscillator goes to 100% that does not mean the price is at 100%. It just means that based on the data that you have been using whatever forces you are watching are 100% of that time period in the past. The Future is unknowable until it happens. Prices can hit the oscillators top, blow through and come back and bust through it again. (Double top).
Blaiserboy
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you might have a look at fibonacci and gann methods, that being said, I have no knowledge of the markets you are working with.
