here's an updated view of the 10950 ES chart, in the video
remember that there was a blue dot, it rallied back to the top of
the bollinger band and then you had some purple dots and thus a
pullback.
anyway just showing for anyone who trades futures or has some of
the M3 indicators, might give you some ideas on settings because
the biggest problem with the M3 indicators is that there are so
many settings it's hard to know where to begin
otherwise, it's been a very slow day for the market in general,
but this chart has provide a lot of quick intra day trades as you
can see if you were a futures trader, provided about 7 quick trades
today for ES
Thats a good way to sum up the M3 Indicators. Yes there are many
different settings one can adopt but its easy to get into a game of
"visual optimisation" where you adjust settings as market dynamics
change. Looks great in the rear mirror but in live trading, its not
as good. My observation from using these.
Reverting back to basics like some of the "simpler approaches"
that are on the nightly updates
depends what you use them for, I use them primarily for trading
futures, which is fast, now if you are trading indexes on 60 min
and 15 min and daily time frames, then they are not really needed,
since you are focusing on newsletter charts, those are longer term
charts like 15, 60 min, daily, obviously they are not really needed
for those time frames
ahead of time, how would you know Michael whether to use the
indicators on the 10950 contract or the 7500 contract? Its usually
rear view mirror stuff.
vimal -- I don't think so. The cycles are good. I
have them on many charts -- different tick charts, contract charts,
candle or bar charts, and they catch turning points fairly often
and, more than that, they denote levels where price congests and
struggles, and if price pushes through the cycle level then it
often keeps going, or if it pushes through and then comes back up,
then that new direction will be sustained. Anyway
-- I know what you're thinking, but its not like curve fitting a
system, its an indicator and sometimes it works better in one
time-frame than another. Also like matt said, you can't use
it alone -- but if you hit a cycle level with divergence on
indicators, or a good fib level, you've got a high probability
trade. Just my thoughts about it.
It really depends, some days it's better on one, and other days
it's better on the other, the good thing is that they tend to
trend, so one day it will work better on one but will generally do
so for the whole day instead of just one trade,
otherwise correlate those with other indicators such as pivots
and divergences and in this case the bollinger bands top and
bottoms, when they line up they are more powerful
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here's an updated view of
Posted by matt on 27th of Jul 2010 at 02:47 pm
here's an updated view of the 10950 ES chart, in the video remember that there was a blue dot, it rallied back to the top of the bollinger band and then you had some purple dots and thus a pullback.
anyway just showing for anyone who trades futures or has some of the M3 indicators, might give you some ideas on settings because the biggest problem with the M3 indicators is that there are so many settings it's hard to know where to begin
otherwise, it's been a very slow day for the market in general, but this chart has provide a lot of quick intra day trades as you can see if you were a futures trader, provided about 7 quick trades today for ES
Thats a good way to
Posted by vimal on 27th of Jul 2010 at 03:00 pm
Thats a good way to sum up the M3 Indicators. Yes there are many different settings one can adopt but its easy to get into a game of "visual optimisation" where you adjust settings as market dynamics change. Looks great in the rear mirror but in live trading, its not as good. My observation from using these.
Reverting back to basics like some of the "simpler approaches" that are on the nightly updates
depends what you use them
Posted by matt on 27th of Jul 2010 at 03:04 pm
depends what you use them for, I use them primarily for trading futures, which is fast, now if you are trading indexes on 60 min and 15 min and daily time frames, then they are not really needed, since you are focusing on newsletter charts, those are longer term charts like 15, 60 min, daily, obviously they are not really needed for those time frames
matt -- nice how close
Posted by Michael on 27th of Jul 2010 at 02:57 pm
matt -- nice how close the cycles hit the tops and bottoms on the 10950 contract chart vs the 7500 contract.
ahead of time, how would
Posted by vimal on 27th of Jul 2010 at 03:08 pm
ahead of time, how would you know Michael whether to use the indicators on the 10950 contract or the 7500 contract? Its usually rear view mirror stuff.
vimal -- I don't think
Posted by Michael on 27th of Jul 2010 at 03:44 pm
vimal -- I don't think so. The cycles are good. I have them on many charts -- different tick charts, contract charts, candle or bar charts, and they catch turning points fairly often and, more than that, they denote levels where price congests and struggles, and if price pushes through the cycle level then it often keeps going, or if it pushes through and then comes back up, then that new direction will be sustained. Anyway -- I know what you're thinking, but its not like curve fitting a system, its an indicator and sometimes it works better in one time-frame than another. Also like matt said, you can't use it alone -- but if you hit a cycle level with divergence on indicators, or a good fib level, you've got a high probability trade. Just my thoughts about it.
It really depends, some days
Posted by matt on 27th of Jul 2010 at 03:01 pm
It really depends, some days it's better on one, and other days it's better on the other, the good thing is that they tend to trend, so one day it will work better on one but will generally do so for the whole day instead of just one trade,
otherwise correlate those with other indicators such as pivots and divergences and in this case the bollinger bands top and bottoms, when they line up they are more powerful