Trend Lines or Indicators?

[swagat86]

Hi Swagat,

I don't have a day trading system as yet, but have zoomed on to Spider Iris as they have good RT data and I want to trade 10 minute charts. This forum has given me a lot, and I will try to give something back!

ss.

Sure Cooool, will wait.


TY

 

[Linus]

dear sunil,

from mere mortals like me - in dt, indicators often provide better signals, as u'd have given up quite a few points b4 trendline is violated (of course u can have tight stops). best signals come from a combination of trendline action confirmed by indicators. one more things that very few people mention in this forum, which is of paramount importance is that looking at multiple timeframe for confirmation. i am sure u have read elder's 2nd book - come into my trading room. Do read LBR, Joe Ross and Chick Goslin b4 u start day trading.

from my experience, dont trade 1 min charts unless u have brilliant real time setup - still remember that it takes time for data to be uploaded and transmitted. 5 mins or 15 mins is great.

great day traders on this forum can tell u much more.

Very good point. I have decided to use Elder's triple screen as my basis. Day chart>60minute>10minute.

Thanks for your response.

ss

 

[ash.investor]

Hi All,

I am not a regular day-trader, but I do some day trading on days when their is exceptionally high volume. I always check for stocks that have comparatively high volume than its average volume.
I request all Experienced traders and seniors to please comment on this.

Regards,
a$h.investor

 

[Linus]

Thanks Winston!

Your inputs are useful. Let us see how I will go around doing day trading. I have written down everything in my trading diary as to how to approach this ...I have a plan and will use every bit of wisdom from here and Elder!

Thanks!

ss

 

[pshirurkar]

hi gurus.
is there any simple s/w avilable which can at a time give the minimum indicators to ascertain the trend.this s/w should be userfriendly and does not contains all the technicalaties which are difficult to understand for beginers

 

[kkseal]

While TA is all about Price & Volumes (some would say only price) the beauty of indicators is that they show you different aspects/facets of that Price-Volume action in a compact, quantitative, non-discretionary form.

Some show you the trend, some the strength, others the momentum and still others the demand-supply balance. It's possible to trade without indicators but personally i would be terribly uncomfortable without them.

It depends on individual style i guess; what one is comfortable with.

Regards,
Kalyan.

 

[Czar]

I would recommend indicators more than trend lines for day trading...

 

[karthikmarar]

.

It depends on individual style i guess; what one is comfortable with.

Kalyan

Exactly, you have put it in a nutshell. There are hundred ways to trade. One can trading with just support , resistance lines with the price and volume. Or one can trade with just patterns as amply shown by Ashish. Others depend on indicators. Trade with whatever you like, but make money..that is the final thing. But I see that to deride the use of Indicators is in fashion nowadays...

regards

Karthik

 

[winstonn]

Hi Karthik,
you are right that there are hundreds os way for trading!
But , every trading methods falls into speciality zones. Some methods will yield 5% return per month , some 2% and some will only get breakeven.
Some methods might also yield more than 20% and some 100%!!!!!

And some super returns like 1000%

When a student learns technical analysis or any other method and plans a trade , he / she builds a method based trading. And falls into the different % zones.

Larry Williams might turn 10,000$ to 1.1 Million $ in a year because he has highest % success method with extreme lowest risk.

And other good traders make money but not probably as Williams

So the point is not the individual style , but the more seasoned the trader is the more his methods are seasoned in the way they have more % success with loset risk.
Eg.

%success ( units ) Reward / Risk Trader class

1 1 1 or C

1 2 2

1 x 1x

2 y 2y

a b ab

So our motto as a successful and rich rader is the hunt for a highest %success with lowest possible risk.

For a good trader a*b must be highest possible.
Some have a very good and some b very good.
But when a and b both are very good , profit is super.



Thanxs
winston

 

[kkseal]

Hi Karthik,
you are right that there are hundreds os way for trading!
But , every trading methods falls into speciality zones. Some methods will yield 5% return per month , some 2% and some will only get breakeven.
Some methods might also yield more than 20% and some 100%!!!!!

And some super returns like 1000%

When a student learns technical analysis or any other method and plans a trade , he / she builds a method based trading. And falls into the different % zones.

Larry Williams might turn 10,000$ to 1.1 Million $ in a year because he has highest % success method with extreme lowest risk.

And other good traders make money but not probably as Williams

So the point is not the individual style , but the more seasoned the trader is the more his methods are seasoned in the way they have more % success with loset risk.
Eg.

%success ( units ) Reward / Risk Trader class

1 1 1 or C

1 2 2

1 x 1x

2 y 2y

a b ab

So our motto as a successful and rich rader is the hunt for a highest %success with lowest possible risk.

For a good trader a*b must be highest possible.
Some have a very good and some b very good.
But when a and b both are very good , profit is super.



Thanxs
winston

Which trader wouldn't want that?

But this can only be achieved by following a method that has components one understands, is comfortable with and with a constant endeavour to improve upon the same.

And there can't be any one way. What works for Larry Williams may not work for Warren Buffet, yet both are extremely successful in their own ways.

If you try to make a Dravid out of a Shewag or a Shewag out of a Dravid you'll probably end up losing 2 good batsmen by trying to morph them out of their personal (batting) styles & comfort levels. One cannot ignore the psychological aspect here as human beings themselves don't all belong to the same 'speciality zone'.

There also can't be one straightjacket definition of success. A Dravid will last longer than a Shewag and make more runs while a Shewag will have a better strike rate. One will have a fan-following for being Mr Dependable while the other for being a flambouyant, swashbuckling entertainer.

But off-course a Dravid*Shewag would still remain the ideal!

Regards,
Kalyan.