Too Much Choice - Help !

[ANGELO]

Hi , just reading thru this board and was extremely impressed with the information available . I use the basics , supp/res , trendlines , simple moving averages , patterns( cup & saucer etc) , and also view the VIX and CRB .Since im a rookie I was hopeing to be enlightened by the more experienced members as I would like to learn an additional "TOOL" for my trades. I would also like to hear your views on the following : davros box systeme
: guppy multiple moving averages systeme
: ROC
: PARTIAL TREND LINES ( are they useful)

I hope with your guidance I can find the perfect compliment to my existing trading style .

thank you for your time and energy !!!

 

[danfreek]

This isn't the answer you were looking for, but you shouldn't be looking for more "tools", there are plenty of good books and free articles on the web about indicators etc, but if you've got a way that works for you, just adding more indicators won't nessesarily make it any better.

By asking this question it seems that you're trying to find the holy grail, a system that never goes wrong, well, that doesn't exist, it never has and it never will, the most important thing you need is good money management, and an edge, that edge can be as simple as a trendline or moving average.

I would advise that you read "trading day by day" by F.H. "chick" goslin, it's one of the best books I've got, it'll satisfy your need to learn new indicators, but much more importantly it contains some very good examples on how to trade with an edge. "come into my trading room" by Alex Elder is also well worth getting your hands on for the same reasons.

 

[onepipwonder]

tools

You have plenty of tools -- continue to learn how to use them,

but in agreement with danfreek you should read "trading in the zone" by mark douglas

 

[ANGELO]

thank you for your replies and for JUMPING DOWN MY THROAT !!!!! easy guys , I appreciate the response , but I never assumed that their was a "holy grail" I trade quite well for a beginer but I just wanted to broaden my horizen and sharpen my point!!! nothing is perfect in the world of trading , thnak you for the book tip

 

[ANGELO]

how about you share with me what you find effective onepipwonder and danfreak , i would love to look it up and learn , i would like to see things from your trading point of view !!!
thanks guys

 

[danfreek]

There's no jumping down throats, sorry if it came accross like that,

I use "chick" goslin's method and Marc Rivallands swing trading method. I tried a breakout method on cable but didn't find that it was very effective. I'm now forward testing an intraday method using a "chick" goslin style approach with CCI and pivot points, it's more of a scalping method due to the short time frame.

Personally I haven't found trend lines and patterns to be that profitable, but that's simply because they don't suit my trading temperament, I like to trade with the trend, I'm not very good at picking tops and bottoms so I don't try. Unfortunately I'm the sort of person that needs action, this doesn't really suit trading very well, so I have to use strict rules, but at the same time I'm not a firm believer in trading systems, so I need to be able to activate trades myself.

So basically look at price action and then use indicators to distill certain information such as trend and momentum from it. When a trend is established, I use dips in momentum to enter the trade and support and resistance to find an appropriate stop location. I exit when momentum dips again. So basically as I said ealier I like to scalp the trend. On my swing positions I try to hold my position through normal pullbacks, only exiting when my stop or my limit ordar are hit, that keeps my dicipline and allows me to accept losses as an acceptable option.

I hope that helps

 

[trendie]

hi danfreek,

are you referring to "Trading Day by Day" book ?
how long after reading did you feel you could apply his ideas ?
thanks.

 

[ANGELO]

There's no jumping down throats, sorry if it came accross like that,

I use "chick" goslin's method and Marc Rivallands swing trading method. I tried a breakout method on cable but didn't find that it was very effective. I'm now forward testing an intraday method using a "chick" goslin style approach with CCI and pivot points, it's more of a scalping method due to the short time frame.

Personally I haven't found trend lines and patterns to be that profitable, but that's simply because they don't suit my trading temperament, I like to trade with the trend, I'm not very good at picking tops and bottoms so I don't try. Unfortunately I'm the sort of person that needs action, this doesn't really suit trading very well, so I have to use strict rules, but at the same time I'm not a firm believer in trading systems, so I need to be able to activate trades myself.

So basically look at price action and then use indicators to distill certain information such as trend and momentum from it. When a trend is established, I use dips in momentum to enter the trade and support and resistance to find an appropriate stop location. I exit when momentum dips again. So basically as I said ealier I like to scalp the trend. On my swing positions I try to hold my position through normal pullbacks, only exiting when my stop or my limit ordar are hit, that keeps my dicipline and allows me to accept losses as an acceptable option.

I hope that helps

HOLY **** that was cool , thanks DANFK , its great to see a master at work , im going to write this stuff down if ya dont mind , learn , observe and apply .
p.s i thought trend lines + simple MA put togehter highlight a trend ?

 

[danfreek]

Cheers Angelo,

I simply use a 49 day SMA to define trend, this comes straight from "chick" Goslin, and as he says the line isn't that importaqnt, it's just an indication, the direction of the line is an indication of the trend and it is nessesary to look at the price action and the prices that will be removed from the SMA to determine how strong the trend is and how likely it is to continue. The reason I don't use trendlines is because I found them too subjective and rigid, but if it works for you then use it, there's nothing wrong with them in principle.

Trendie, yeah I'm talking about "trading day by day" I tried to apply the stuff straight after reading the book, but I was far too strict with the lines and I didn't understand the method well enough to make it work. I re-read the book and the thread on this site and I began to see how the lines work together and exactly what they are designed to show. the lines themselves are possibly the least important part of the book, chick even says himself, any indicator that represents price action with reasonable accuracy will work fine. I think one of the things that made me understand the lines was that the ML tends to follow the price swings, and everything else hinges around that, not the other way around.

 

[ANGELO]

Cheers Angelo,

I simply use a 49 day SMA to define trend, this comes straight from "chick" Goslin, and as he says the line isn't that importaqnt, it's just an indication, the direction of the line is an indication of the trend and it is nessesary to look at the price action and the prices that will be removed from the SMA to determine how strong the trend is and how likely it is to continue. The reason I don't use trendlines is because I found them too subjective and rigid, but if it works for you then use it, there's nothing wrong with them in principle.

Trendie, yeah I'm talking about "trading day by day" I tried to apply the stuff straight after reading the book, but I was far too strict with the lines and I didn't understand the method well enough to make it work. I re-read the book and the thread on this site and I began to see how the lines work together and exactly what they are designed to show. the lines themselves are possibly the least important part of the book, chick even says himself, any indicator that represents price action with reasonable accuracy will work fine. I think one of the things that made me understand the lines was that the ML tends to follow the price swings, and everything else hinges around that, not the other way around.

intresting , looks like im gonna have to get a feel for this even after i have learnt it ,shame you dont live near london i would have like to meet up with u for a couple of drinks and hear an insight to how you "conduct business", thanks for all the advise mate