Hi Andre,
I also trade the Emini and the Ftse which also seem have a correlation.
I use MACD and fast Stochastics in conjunction with my Support and resistance lines and Bollinger Bands.
I find My S&R lines to be of most importance and MACD seems to work very well in trending markets like the Emini and Ftse.
For me, my greatest indicator is my eyes! i Watch price action, especially on the hourly chart, but i usually take my trades off the 5 min chart. I make sure, or try to make sure, that my setup on both charts makes sense, in other words that MACD is favourable on both even if stochastics is not. I place great emphasis on my support and resistance lines and i like to see where price is in relation to my Bollinger Bands, this way i am roughly able to guauge wether the move has some room to run, if that makes sense!
If i had to choose one indicator out of all of the ones i have mentioned above, I would stick to my S&R lines and price action, I know its not an indicator as such but if placed correctly on the charts you can watch the bounces off or the penetration through and trade quite well. MACD often keeps me in a trade even if price is approaching a resistance. I find that if MACD is favourable and also its Histogram is also favourable then i will stay in the trade with relatively tight stops at this point.
Fundamentals also play a large part in my trading. I make sure i know in advance if any major news is due and if it is I try not to be in the market. I have learnt to my loss that if i am in the market when major news is due, this is like gambling! I wait until the market settles a little and then i follow the trend. All i want to do really is copy the big boys, ride on the moves that they are taking.
Not as easy as it sounds but i find, with practise, I am getting better. I think i can see when profit taking is happening. I no longer panic on retracements and i ride them out ( unless its an obvious change in market direction)
I like trading the emini. It's volatile enough to throw up opportunities everyday.
I spreadbet the emini/FTSE by the way which is different to trading it i suppose however I,m using the charts and my indicators/signals in the same way I would if i were trading these markets.
I,m no expert, no slave to any indicator, I have just found a simple system that seems to work ok for me. Yes i make losses as well as gains, I just try to keep my gains much bigger than my losses.
I,m still learning to control my emotions ( not as easy as many say) when im in a profit or a loss situation. I try very hard to cut my losses early, i dont always do as i should though and sometimes i let my losses get a bit bigger than i know i should. I,m learning everyday.
I find im quite good at letting my profits run, especially if i can see a clear run up to a resistance line and MACD is looking good.
I dont tend to place that much importance on Stochastics, I just watch what its doing. I find that if i did follow this indicator I would be trading every other bar! it's too reactive. I like to watch it for divergences. Another area I,m trying to get upto speed on. I dont see that many divergences to be honest but when they do appear I do notice the change in direction for price.
I hope my novice opinions have helped some.
Rgds
Renato
