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Trading: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
Posts: 106 since Jul 2012
Thanks Given: 108
Thanks Received: 126
Good set of indicators for this is from the Intentional trader. He uses most common ones such as RSI, MACD etc but with a good visual display. The other thing what will help is just knowing the market you're trading really well and more often then not you'll get a good understanding of the markets movement. I mainly trade Dax because it gives good reversals, and as others pointed out, you can anticipate momentum as well in the same way as its a reversal all the same. For the most part find something that works and get really good at it. No set of indicators are going to be perfect, for me they're just a visual aid to help me confirm what I'm already seeing. Hope that helps.
So in summary, you are fading 3 instruments after a potential bull/bear spike and (according to one of your later posts) are currently "right" about 50% of the time in SIM.
Fading the market can bring rich rewards, but it can also leave your account devastated. I won’t pass judgement on your efforts to go this route, but note it is an extremely difficult way to trade. A lot of new traders start out this way, including me. I am not sure why.
Like anything though it can be done, but you are currently trading in SIM which is next to useless. That was meant to sound harsh. There have been many threads on the transition from SIM to LIVE so we don’t need to discuss that here. Trading with real money in a real account will bring you significantly different results. If you are currently 50% “right”, why not trade a single contract in a LIVE account to see if you are still 50% “right”. If you are, you only need to eat the commissions until you get better at the whole fading thing.
Also, you should be concentrating on a single instrument. You don’t need to be nursing 3. This can come later, but getting good with 3 isn’t the same as getting great with 1.
As for the confirmation of reversal from a spike, there was nothing out there that really defined what I needed. I therefore wrote my own data series (not an indicator) that gave me said confirmation, but the tradeoff was knowing a few ticks later. It is good around 85% of the time, but I use this more for getting out of existing positions, although I do take reversals of course if the context fits.
If you really want to go this route of fading the market as your bread and butter trades, I wish you all the good fortune in doing so.
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- Trade what you see. Invest in what you believe -
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Thanks Matthew,
Coupla quick questions,
Re: ".....with a volume histogram and look for volume spikes"
1. What would be a good Volume Histogram?
2. Is a Volume Histogram the same as a Volume Oscillator?
Ardubya
To be clear I am just suggesting these in response to your questions, not endorsing any methodology.
1. Just a basic Volume indicator that probably every charting package has such as at the bottom of this chart:
This is the video on volume spikes that TraderTS mentions in his post (this version from YouTube):
2. For suggesting divergence such as the RSI indicator (like all indicators it all looks very clear after the event):
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
".....not endorsing any methodology" - Absolutely matthew28. Totally understood. I take every piece of information at face value. We're just a coupla guys down at the bar having a beer talking shop.
Lemme check out those links/videos. Thanks!
Ardubya