Indicators? Indicators? INDICATORS?

Ok Hobbit
How do you trade without using charts? Wow I kept that short.

You trade by reading the tape and pure price action. You can also trade fundamentally without seeing charts. As well as throwing some ideas out there with good risk/reward ratios.

Or Hobbit may do something different… just listing a couple ways to trade without charts.

To Toptick07,
I use 7 time frames ; 1,5,10,30 mins,1,4 hrs and daily. I position trade - i am certainly not good enough to scalp.

Same tools for each chart : 2 indicators - MACD and GMMA, that is all.

You are right about the chart download limit which for bmp is 1.0mb. My charts are 3.7mb!:mad: :mad:

So how can i cut down on the megabytes so as to post the charts?

Kind regards, Tymen Wortel, Perth, Western Australia.

To Toptick07,
I use 7 time frames ; 1,5,10,30 mins,1,4 hrs and daily. I position trade - i am certainly not good enough to scalp.

Same tools for each chart : 2 indicators - MACD and GMMA, that is all.

Interesting. I prefer longer time frames. I start with monthly and work my way down. Most trades are placed on 4hr or higher. I use intra-day TF’s to refine entries.

As far as scalping, I don’t think day trading makes you a [U]better[/U] trader. IMO, it is best to begin trading on long TF’s, not intra-day TF’s. You may find that once you develop skill with dailies and learn to manage long term trades, you won’t want to trade intra-day.

You are right about the chart download limit which for bmp is 1.0mb. My charts are 3.7mb!:mad: :mad:

So how can i cut down on the megabytes so as to post the charts?

Kind regards, Tymen Wortel, Perth, Western Australia.

Well, I’m no computer expert. Maybe one of our resident computer gurus can give you an exact answer. I would try opening your chart in “paint” or “photo editor” and adjusting the size or resolution of your chart. Some file types are smaller than others. Hope that helps.

Well, without laying out my whole system I basically just look at what price is doing currently compared to what it has been doing in the past and make my trades based on what I think the comparison is telling me.

Hobbit!!! You should go into politics! :smiley: :smiley: :smiley:

I agree entirely that trading in its purest form is simply a comparison of the present price to the previous price and deciding what to do. It’s easy to get caught up testing indicators and developing systems and writing rules. You can waste years of time and gigawatts of effort on chasing that grail and still come up empty handed.

I know a stock trader that uses very few charts, concentrates on one or two sectors, and uses primarily S/R.

Here’s his approach:
When they go up, he buys.
When they go down, he shorts.
When they range, he plays video games.

In his words, “You guys try to outsmart the market with math and colored lines. Those are just window dressings. Me? I just want to be a dumb trader who buys when they go up and shorts when they go down.”

Brilliant. Just frickin’ brilliant…

Five women in the house? No wonder your hair fell from your head to your feet. … or did you pull your hair out? :stuck_out_tongue:

Well Hobbit,
I was about to agree with top or say you were scared to tell us. But my ex-wife had 4 sisters and no brothers, so now I know your scared and know to keep your mouth shut. By the way my ex-dad-in-law is the smartest man in the world. When the first girl asked him to fix her breaks, the job he did was so good that he totaled the car. After close to 20 years they have never asked him to work on thier cars again.

To Hobbit

Ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhha!!:smiley:

So thats how you do it.

Ok i will try zipped files. Mmmm, now lets see…zipped files…ummmm, I think i will get this right. I will give it a jolly good try.

Thanks.

Kind regards, Tymen Wortel, Perth, Western Australia.

Ok rip a tune Boris here we go with charts.:stuck_out_tongue:

I still prefer the pictures being placed on the post immediately but the program for this forum appears to be a little primitive and could do with upgrading.

Two indicators are shown : MACD (19,26,9) and Guppy Multiple Moving Average. Bolinger bands have been omitted for clarity but i do like to look at them.

To open charts : click then open (open again if necessary). Close all other programs and tile vertically or horizontally to allow post reading at the same time as chart viewing.

Chart A : This chart shows the MACD all over the place but the GMMA long, (red) is level and narrow, depicting an unstable oscillating trend. Anything could happen. The GMMA overrules the MACD and tells you to stay out at this time and wait.

Chart B : Chart B show the MACD trigger line crossing at A, giving a short trade, but the GMMA long is level at this point and overrules the MACD and we stay out of the trade until near point B where the GMMA long starts to fall. The GMMA long widens, showing that the trade increases in strength going downwards.
Point C is a good entry with the MACD and GMMA in agreement.

Chart C : Chart C shows the MACD trigger line crossing at A, giving a short trade, but again the GMMA long is level, directing a wait. We enter near B where the GMMA falls. Point C shows the MACD trigger line crossing, giving a long trade, but the GMMA is very wide showing a strong downward trend. We wait for the GMMA long to show signs of turning and, therefore, enter near point D.

Whenever the MACD and GMMA long diverge, the price action takes the middle road and goes level, ie nowhere. It is, therefore, important to have both these indicators in agreement otherwise a MACD entry will cause a long waiting time with frustration before anything happens.

Regards, Tymen Wortel, Perth, Western Australia.

chart A.zip (72.1 KB)

chart B.zip (79.8 KB)

chart C.zip (81.4 KB)

Hey Indicators are not very useful. The basic ones like SMA probably work the best for trend trading. The problem is inherent to how they are constructed, let me explain. Most of the indicators take price levels and throw them into a formula of some sort to give you an indicator reading.

So they depend on price levels, but the problem is that price levels in the past or more accurately the change of price level from one period to another is not a good predictor of future price levels. If you have the time simply test it for yourself pull out the change in price level from one period to another then set them side by side as 2 separate time series of price changes and check the correlations. Non.

Things like ATR and volume are a different story, volatility tends to cluster so they are better predictors of future volatility.

What you really need is an indicator that also gives you a real time reliability reading of itself.

Where did you dig this old thread up from, last post 11 years ago!

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Didn’t check the last post. Oh well.

The forum is actually (inadvertently) encouraging members to do this. (I’ve done it myself, by mistake).

The main problem lies in the “Suggested Topics” display presented at the end of every thread: it would be much better if that display (if needed at all) limited itself to threads in which the last post was within some recent time period, rather than (as now) being context-relevant but having absolutely no date-relevance at all.

That’s making it terribly easy for us to bump ancient threads like this, by mistake. Which displaces other more recent/active things from the front page listings (which is why it is a problem at all, of course).

Is there any chance this could be changed, please, @Pipstradamus?

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@LukasVisser

Hey I wanted to ask you something, I remember you saying something about not making predictions with your trades; I didn’t quite understand what you meant by that.

It’s true, price is the key! This is way, I prefer PA strategy instead of indicator based trading.

Okay got it. Price Acton based trading through the Support and Resistance. How do u determine your R1,R2,R3 etc…do u use the standard formula or do you have Market Depth to figure that out

I figure out the S/R levels manually by using the horizontal and trend lines! Even, sometimes I need to use fibo.

Cool that sounds good. Classic PA using charts. Does that work for you, I wouldn’t go there myself because of the inability to back test it.

Yes, back test first, if you get any consistent result then finally go for the live trading! All the best.

Yes depend on your strategy and manual trading skill not see towards indicators or signals they will work for you. They will tell you estimations not true prediction. Even professionals can not predict 100% for forex trading. Indicators work on some formulas but market has no rule to move .