Trends and Channels: Great Post Matt! You hit an
important topic that has "plagued" me for years: 10 min Trend
is Up, 30 min Trend is Down, 2 Hour Trend is UP, and 1 Day Trend is
Down. Is it an uptrend or downtrend? You imply that you
need to establish your trading plan and style and stick to it.
That would imply that you need to select your "preferred"
timeframe, put the horse blinders on, commit to the plan for that
timeframe. . . but, hedge a bit and keep an eye on the the other
timeframes.
Posted by DigiNomad on 19th of Jan 2023 at 11:43 am
Brophy - curious if you would agree that some indicators work
better on some time frames than others for a given instrument
(ticker)? ...and my experience is that it changes over
time. Sometimes the 15 minute system (group of indicators) is
crushing it and then a couple of days later it will be the 3
minute, etc. I think that's why a lot of people stick to
trading 1 - 3 stocks or indexes.
DigiNomad, there are momentum indicators and oscillation based
indicators. For trending moves, momentum based indicators are most
suitable. An example of a momentum based indicator is MACD and MACD
histogram. A good momentum indicator will stay put for the duration
of the trend. Some indicators are faster than others. Momentum
indicators work well on 30-minute charts and longer. For day
trading, momentum indicators are very specialized and based
on volume rather than price or on alignment of multiple time
frames. A bear flag will not work on 5-minute chart if the
30-minute chart is bullish, etc. FWIW.
Posted by DigiNomad on 19th of Jan 2023 at 12:06 pm
Mining Stocks - Not exactly my line of reasoning but you make
good points. I'm going to look into the last one as I hadn't
thought of that previously.
Maybe easier to think of what I'm trying to say in terms of the
BPT KISS charts. Notice how the 195 minute has been killing
it in the very near past? But it's not always the 195 that
respects the supports, resistances, buy/sell cycles, etc. Sometimes
other time frames make the KISS systems look like a soothsayer
(borrowing Steves' terminology). But if you picked the 195 today
and decided to always trade on it because it nailed it for a
couple of weeks, you would eventually find that another
timeframe is performing better.
DigiNomadSee how complicated it gets? haha Junkie is right of
course. But what anybody needs to do is paper trade their favorite
indicators until they feel good about them and know exactly how
they work. I think the most un-talked-about indicator is the Hull
Moving Average. It does not lag and accurately helps you follow the
trend. I use it in 9 and 20 Ma.
That has not been my experience. If you think that way it
probably will make things even more confusing. I think most things
are fractal. If an indicator works in one timeframe I believe it
will work on any. Unless it is specifically coded differently. (I
have some TOS indicators that are like that) But usually I like the
daily timeframe for the trend, using a 30-minute timeframe with pos
and neg divergence for entry.
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Trends and Channels: Great Post
mining stocks
Posted by Walt on 19th of Jan 2023 at 11:34 am
Trends and Channels: Great Post Matt! You hit an important topic that has "plagued" me for years: 10 min Trend is Up, 30 min Trend is Down, 2 Hour Trend is UP, and 1 Day Trend is Down. Is it an uptrend or downtrend? You imply that you need to establish your trading plan and style and stick to it. That would imply that you need to select your "preferred" timeframe, put the horse blinders on, commit to the plan for that timeframe. . . but, hedge a bit and keep an eye on the the other timeframes.
Choose the main timeframe your
Posted by brophy on 19th of Jan 2023 at 11:38 am
Choose the main timeframe your trading, monitor for continuation of the trend and use a shorter one to get in and out...that's it!
Brophy - curious if you
Posted by DigiNomad on 19th of Jan 2023 at 11:43 am
Brophy - curious if you would agree that some indicators work better on some time frames than others for a given instrument (ticker)? ...and my experience is that it changes over time. Sometimes the 15 minute system (group of indicators) is crushing it and then a couple of days later it will be the 3 minute, etc. I think that's why a lot of people stick to trading 1 - 3 stocks or indexes.
DigiNomad, there are momentum indicators
Posted by junkie on 19th of Jan 2023 at 11:53 am
DigiNomad, there are momentum indicators and oscillation based indicators. For trending moves, momentum based indicators are most suitable. An example of a momentum based indicator is MACD and MACD histogram. A good momentum indicator will stay put for the duration of the trend. Some indicators are faster than others. Momentum indicators work well on 30-minute charts and longer. For day trading, momentum indicators are very specialized and based on volume rather than price or on alignment of multiple time frames. A bear flag will not work on 5-minute chart if the 30-minute chart is bullish, etc. FWIW.
Mining Stocks - Not exactly
Posted by DigiNomad on 19th of Jan 2023 at 12:06 pm
Mining Stocks - Not exactly my line of reasoning but you make good points. I'm going to look into the last one as I hadn't thought of that previously.
Maybe easier to think of what I'm trying to say in terms of the BPT KISS charts. Notice how the 195 minute has been killing it in the very near past? But it's not always the 195 that respects the supports, resistances, buy/sell cycles, etc. Sometimes other time frames make the KISS systems look like a soothsayer (borrowing Steves' terminology). But if you picked the 195 today and decided to always trade on it because it nailed it for a couple of weeks, you would eventually find that another timeframe is performing better.
DigiNomadSee how complicated it gets?
Posted by brophy on 19th of Jan 2023 at 12:01 pm
DigiNomadSee how complicated it gets? haha Junkie is right of course. But what anybody needs to do is paper trade their favorite indicators until they feel good about them and know exactly how they work. I think the most un-talked-about indicator is the Hull Moving Average. It does not lag and accurately helps you follow the trend. I use it in 9 and 20 Ma.
The trade-off for a momentum
Posted by junkie on 19th of Jan 2023 at 12:08 pm
The trade-off for a momentum indicator is accuracy versus speed. Since accuracy is preferred, a momentum indicator is necessarily slow.
That has not been my
Posted by brophy on 19th of Jan 2023 at 11:51 am
That has not been my experience. If you think that way it probably will make things even more confusing. I think most things are fractal. If an indicator works in one timeframe I believe it will work on any. Unless it is specifically coded differently. (I have some TOS indicators that are like that) But usually I like the daily timeframe for the trend, using a 30-minute timeframe with pos and neg divergence for entry.