Trading the Dow Summary
- Thread starter Newtron Bomb
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Good work to Newtron and Chartman. I'm a newbie and am very interested in this system. However i have a slight problem with the CCI setting in Metastock. You say that the CCI should be set at 150 but when i do this i get a flat line. Have i missed something? Hope i'm not being stupid. Any help on what should be a simple problem to correct would be appreciated
TheBramble
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Jimmy, welcome to t2w.
You could try asking on the Metastock forum, but first thing I could think of - how much data do you have loaded in? If it's less than 150 'timeperiods' this may be the problem.
You could try asking on the Metastock forum, but first thing I could think of - how much data do you have loaded in? If it's less than 150 'timeperiods' this may be the problem.
Bramble,
I'm trying to use chartmans DOW 100ma system as laid out by Newtron, so the chart i'm using will be 1 minute intraday. Therefore i should have as many time periods as any one else unless i'm missing something (i'm not being sarcastic). CCI in Metastock defaults to 15 so i'm thinking this may be the same as 150 in chartmans software. If anyone can help i would appreciate it as im stuck and feeling a bit dumb at falling at the first hurdle.
I'm trying to use chartmans DOW 100ma system as laid out by Newtron, so the chart i'm using will be 1 minute intraday. Therefore i should have as many time periods as any one else unless i'm missing something (i'm not being sarcastic). CCI in Metastock defaults to 15 so i'm thinking this may be the same as 150 in chartmans software. If anyone can help i would appreciate it as im stuck and feeling a bit dumb at falling at the first hurdle.
Newtron Bomb
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jimmy1066 said:
If 15 is your default setting then you will be looking at 15 periods of data in this case the last 15 minutes.
You need to adjust this to 150 to see the same picture on the Dow strat.
I have not used Metastock and you may be best advised to put this Q on the metastock forum.
It does sound like a problem with data as well as the setting being wrong.
HTH
NB
lurkerlurker
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Questions about Chartman's Method
Hi all
I was wondering if someone would be good enough to address the issues raised in this post. I am trying to trade the Dow with guidance from Chartman's system, but I have some difficulties with some of the rules. The confirmation of the EMA break is particularly hard for me to understand.
If you look at my linked post, which has a chart and examples, the system seems to miss the biggest swings because of (my interpretation of) the EMA confirmation rule. Absent the rule for confirmation, the system catches all the big swings without fail, but generates many whipsaws. I am aware of the expertise of chartman and the anecdotal evidence in favour of this system on these boards. Therefore I conclude that the issue must be with my interpretation and execution.
If someone with knowledge of this system could weigh in, I would appreciate it. I am sure there are others who could use clarification.
Thanks to all the participants in this thread, and in particular Newtron Bomb for the documents, and of course Chartman!
Cheers
~LL
Hi all
I was wondering if someone would be good enough to address the issues raised in this post. I am trying to trade the Dow with guidance from Chartman's system, but I have some difficulties with some of the rules. The confirmation of the EMA break is particularly hard for me to understand.
If you look at my linked post, which has a chart and examples, the system seems to miss the biggest swings because of (my interpretation of) the EMA confirmation rule. Absent the rule for confirmation, the system catches all the big swings without fail, but generates many whipsaws. I am aware of the expertise of chartman and the anecdotal evidence in favour of this system on these boards. Therefore I conclude that the issue must be with my interpretation and execution.
If someone with knowledge of this system could weigh in, I would appreciate it. I am sure there are others who could use clarification.
Thanks to all the participants in this thread, and in particular Newtron Bomb for the documents, and of course Chartman!
Cheers
~LL
nkruger
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The system that I am working on to trade the Dow intra-day also suffered from lots of 'whipsaws' so I added 'ADX - Directional Movement' which will alert you to the start of a strong trend or the weakening of one - which is where you get the whipsawing. This one indicator has increased my win rate to almost 85%. Try it and see if it works for you. There is an excellent article on it by Sunil Mangwani on this site - you must follow it to the letter though to get real success !!
Good luck. NK
lurkerlurker
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Hi NK
The DMI / ADX is a really useful indicator. I am working on adding it to my Dow setup for confirming or vetoing EMA crossover entry signals.
nkruger
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nkruger
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Just read chartmans theory and found that he uses 100MA - do you find this keeps you out of a lot of profitable trades - I've just done a quick test (so by no means conclusive) and found that a 65MA with RSi and ADX works v.good - what do you think ? Have you had much success with chartmans original set-up/strategy ?
Nick
lurkerlurker
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I mentioned this in my journal. I found that the few great trades it produced were more than offset by the whipsaws and the trades it missed.
Currently, I am using 8 and 21 DEMA crossovers as entry signals. Confirmed wtih CCI/RSI. Will try the 65 period EMA - what timeframe do you use?
Currently, I am using 8 and 21 DEMA crossovers as entry signals. Confirmed wtih CCI/RSI. Will try the 65 period EMA - what timeframe do you use?
nkruger
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LL,
When 'daytrading' I start with 5 mins and as soon as a set-up looks like it's rearing it's ugly head, I then change to 2 & 3 mins to keep a closer eye on the whole shooting match. I do go back to 5 mins every so often, just to keep an eye on the 'bigger' picture.
I'm going to havea look at 8/21 crossovers this afternoon, to see if they will fit into my strategy. Do you find the CCI of use - I've never used it myself.
Nick
lurkerlurker
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The CCI can be good for identifying potential divergences which could indicate reversals. I try to look for CCI indicators on 5 and 10 minute charts looking quite far back - try it on data from the last fortnight, tell me what you think.
nkruger
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Good evening LL, I've found an even more interesting one - Stochastic 39 1 8. Gets me in REALLY early. Read more here :http://www.trade2win.com/boards/showthread.php?t=25277 and pay particular attention to Options comments..... Good luck
lurkerlurker
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Thanks for that. I suppose that is for a 1 minute chart? I am trying to keep to longer timeframes, and stop relying on indicators though. I'll keep it in mind - does it go with a system, and if so care to post it?
What I like about trading off indicators is that it is easier to remain confident in the trade, and the signals are clear. I might consider it, although with my trading I don't think the system is the problem - the problem is me.
By the way, I've just posted a system in my journal which may be of interest.
nkruger
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LL, yup, it goes together with the system described on the aforementioned thread (IBEX- a simple trading strategy, in European Indices) I think it works on longer timeframes, haven't tried it yet. There was quite a lot of refinement done to the system yesterday by other members and it's looking really very good.
I'll have a look at your new strat, thank you.
NK
