Trading the daily charts

Now I’m not a fan of indicators but if you read through Steve Nison’s books and listen to his webinars, you’ll often hear him say “the more indicators the better”.
If I ever have to trade off the daily charts then I might use 1 indicator but only in conjunction with S&R and candle patterns.

Interestingly enough he also said indicators should only be used when the market is ranging, ie when trending they cannot be used. This seems counter intuitive to what a lot of people on these forums have said?

Another thing I thought was odd was: “if you trade from S&R and candle patterns, you go to a lower timeframe to set your entry but your target is based on the lower timeframe”. Shouldn’t it be based on the higher timeframe?

ie Candle patterns, S&R, RSI, and ADX.

About Steve Nison, I watched his 1 day seminar on video and it was pretty good but at least 5 times in the video he said one thing and within a few minutes he showed on the chart the exact opposite.
I also noticed that he is using one chart and shows some results on other charts. Like he says, he is a Instructor/Advisor. He is now selling his system on his website with a (for my opinion) questionable company.
Bottom line, he makes a lot of money with the seminars and teaching, how much he really makes with trading could be a different story.
He is a good salesman and a good psychologist therefore take it with a “grain of salt”.
In the end it is always YOU who is loosing or winning. :slight_smile:
BTW just watching the video and “try” to comprehend makes you tired, needless to say sitting 1 day in his seminar drains you and you could see it on the peoples face sitting there.

"if you trade from S&R and candle patterns, you go to a lower timeframe to set your entry

this statement is ridiculous and so is the notion that you would choose a target from a lower frame. if anything you would got a higheer timeframe and make sure you are not standing in front of a train going the wrong way!!!

you could refine your entry on a smaller timeframe but i find my analysis is stronger on a longer timeframe.

Nison makes more selling his books and seminars than he does trading. If he made money trading he wouldn’t be selling his ideas, he would be running a fund or something. I’m not suggesting he doesn’t have a valuable product, but I am suggesting that if you let him drive, then you aren’t driving, you are a passenger.

The concept that you need a lot of indicators (filters) is only true if you don’t have one or two very good ones. The simplest explanation is usually the correct explanation. That’s why Elliott Wave guys argue with each other…it’s way, way too complex.

Regarding filters and their usefulness with trending and non-trending markets, it seems logical that one would research what filters work better in each kind of market. A filter that works well in a trending market may not be the best one in a different market.

The statement, “…if you trade from S&R and candle patterns, you go to a lower timeframe to set your entry but your target is based on the lower timeframe…” makes no sense. I suspect what he meant to say was that you set your entry on a shorter-term chart and base your exit on the longer-term chart you were looking at in the first place. For example, you want to go long on the long-term uptrend on Euro daily chart. You would have a winning exit point in mind from that same chart. But to make an excellent entry, you might look at a pullback on that chart and then look at the two-hour chart and look for a short-term bottom swing that goes from down to up…the same direction that you want to go. That way you can calculate a stop-loss on the shorter-term chart and not get whipped…and at the same time if you get a good entry, you are on board for the longer-term move up that you anticipated from the daily chart.

Yes and no. You can know enough about something that you want to publish it or in fact a book publisher asks you first and you think why not.
But I understand your point.

The concept that you need a lot of indicators (filters) is only true if you don’t have one or two very good ones. The simplest explanation is usually the correct explanation. That’s why Elliott Wave guys argue with each other…it’s way, way too complex.

Regarding filters and their usefulness with trending and non-trending markets, it seems logical that one would research what filters work better in each kind of market. A filter that works well in a trending market may not be the best one in a different market.

I think what he was getting at was that because something like the RSI measures momentum if you are comparing 2 points, in a rangin market, it makes a very good indicator of strength at each point. In a trending market, you have to go with the trend. ie oscillators should only be used in ranging markets.

The statement, “…if you trade from S&R and candle patterns, you go to a lower timeframe to set your entry but your target is based on the lower timeframe…” makes no sense. I suspect what he meant to say was that you set your entry on a shorter-term chart and base your exit on the longer-term chart you were looking at in the first place. For example, you want to go long on the long-term uptrend on Euro daily chart. You would have a winning exit point in mind from that same chart. But to make an excellent entry, you might look at a pullback on that chart and then look at the two-hour chart and look for a short-term bottom swing that goes from down to up…the same direction that you want to go. That way you can calculate a stop-loss on the shorter-term chart and not get whipped…and at the same time if you get a good entry, you are on board for the longer-term move up that you anticipated from the daily chart.

I agree.

Do you know that to be true? Of course it makes logical sense but you could say the same to a person running a fund. Why run a fund if you can trade your own money from home? The regular payment probably does wonders for loans and mortgages. It’s like saying BabyPips is only run by people who can’t trade, why bother otherwise?

Of course I’m skeptical about any trader writing a book but his methods work very frequently so how could he be a bad trader? :slight_smile:
Just playing devil’s advocate.