Nothing to something scalping system

[alwaysLearning]

Hey TH, do you look at common patterns like things such as 'head and shoulder' patterns and stuff like that as well as your own unique patterns that you file away in your folder?

Personally my main interest is focused on how the candles respond at certain levels of support and resistance. I also look at how quickly the candles pulsate up and down and I only buy/sell on 'pull backs'.

Do you use trend lines like channels etc.

Or to put it another way, how do you go about analysing the chart from a technical point of view? There are so many ways and you have written a lot of things in your posts that one can pick up on already but I'm just curious if there is one or two golden nuggets that you could share that is common to a lot of your trades?

Personally, I like channels. But I'm really keen to look at momentum or how quickly the candles move. I don't trade if there is nothing happening on the screen.--I just walk away.

 

[Trembling Hand]

Looking for traditional TA patterns in your instrument is completely the wrong way to go IMO. Whoever said they even occur often enough in your instrument and on your time frame?

Of course you use Support?Resistance/Higher Highs/Lower Lows and all the basics but I reckon you are better off just looking at your market and finding "its" patterns. Which you sound like you do.

Thats what always gets me about TA. People use patterns that they don't even know their probabilities in the market they apply them to.

 

[alwaysLearning]

Looking for traditional TA patterns in your instrument is completely the wrong way to go IMO. Whoever said they even occur often enough in your instrument and on your time frame?

Of course you use Support?Resistance/Higher Highs/Lower Lows and all the basics but I reckon you are better off just looking at your market and finding "its" patterns. Which you sound like you do.

Thats what always gets me about TA. People use patterns that they don't even know their probabilities in the market they apply them to.

Yeah I see what you mean, and that's why I was curious to find out what you thought. Actually you're methods make a lot more sense to me about reading each market's personality.

Having said that, I guess it depends if you trade exclusively on patterns alone or how you integrate TA patterns into your trading rules. For example, it is widely known now I think that if you look at candle sticks in a purely mechanical way, they don't work.

There were some tests done by swhagger and he basically says that the probability of using candle patterns exclusively are pretty poor. Thing is though that candles are so subjective. If you integrate some of the basic candle patterns as confirmation indicators or something that alerts you to look more closely at something on the chart, then I don't see any problem with them.

Likewise with head and shoulder patterns. Head and shoulder patterns would be subjective if you use it along with other things as a kind of confirmation pattern. Having said all of that, I still think you are right about looking at the probability of certain patterns in your own market that you are trading and using it if it does have a high probability.

I'm still new but I find that I look for the basic things mostly such as the size of the real body of the candle, how many green candles there are compared to red candles, and then looking at the trend. Trying to see if the trend is within a channel.

If it breaches the channel wall by x number of pips or breaches support/resistance OR psyche levels by x number of pips then for me, the market is trying to show me its hand in terms of the direction it wants to go. Sometimes I have terrible risk to reward ratios and that is what I'm trying to work on but surprisingly I at times have a very very good win record. (approx 70% or higher). Average loser can be a killer though but I try to terminate trades based on how quickly the market moves against me.

I know that I have MM problems and that's what I'm looking to improve on but it's a continual process of learning.

The biggest thing I've learned from you is that:
1. It is possible to make good money trading.
2. That the process of learning how to trade is to analyse charts and watch them in real time. Print them out and analyse them and write things down about why you made the trade and what went wrong or right.

Anyway, I hope I haven't rambled too much. This is a great thread and I like everyone else here appreciates your effort in helping others and sharing your trading experiences

 

[brty]

TH,

This is an excellent thread that you just turned to gold...

Looking for traditional TA patterns in your instrument is completely the wrong way to go IMO. Whoever said they even occur often enough in your instrument and on your time frame?

Of course you use Support?Resistance/Higher Highs/Lower Lows and all the basics but I reckon you are better off just looking at your market and finding "its" patterns.

This is so often ignored by most. Recently I questioned a well known trader about just this point. The answer I got was about how someone else had shown the pattern worked x% of the time in another market in another time. To me that means "no idea".


You should probably start grabbing all the little gems you have written in the forum as the basis for a book at some stage in the future, as your knowledge/market wisdom is much better than many 'experts' that do write books.


brty

 

[Trembling Hand]

Ha!!

Looks like they aren't to keen for me to throw my coin in the bucket today.

Game over!!

 

[chops_a_must]

Lol!

Good work...

 

[Trembling Hand]

Thanks Brty. But I couldn't possible write a book. 30 seconds is a long time for me. How long would a book take

 

[rub92me]

Ha!!

Looks like they aren't to keen for me to throw my coin in the bucket today.

Game over!!

You mean the provider stopped your account (as anticipated), or you've reached your maximum loss for the day?

 

[Trembling Hand]

You mean the provider stopped your account (as anticipated), or you've reached your maximum loss for the day?

I can't get a trade to execute. takes 20 -30 seconds after I hit the button.

 

[rub92me]

I can't get a trade to execute. takes 20 -30 seconds after I hit the button.

I can see how that can be a bit of a handicap with an average hold time of 30 seconds

 

[BBand]

Hi TH,
Thank you for this exceptional educational thread.

I operate in timeframes a good bit longer than you and can only marvel at how you trade

How many monitors (screens) do you use?

 

[mazzatelli1000]

Hi TH,
Thank you for this exceptional educational thread.

I operate in timeframes a good bit longer than you and can only marvel at how you trade

How many monitors (screens) do you use?

He doesnt use any!!
Just waves a magic wand around

When I last looked at TH's blog, it had 4 screens...Im wondering what his electricity bill is

 

[Trembling Hand]

He doesnt use any!!
Just waves a magic wand around

When I last looked at TH's blog, it had 4 screens...Im wondering what his electricity bill is

Ha! If that was the case I would be waving my wand for another latte'.

You can look here.

But to tell you the truth I spend 98% of the time looking at a 5 cm x 5cm square bit of screen. The rest is just for the odd glance.

 

[RobinHood]

hey TH

on the link you just posted, left screen with bloomberg page on it.
Underneath that there is something that looks like a quote screen with dozens of instruments. What is that?

 

[Trembling Hand]

First one is world futs and currencies. Second one is ASX stuff. Mostly ASX20.

 

[MRC & Co]

ha ha, love how your equity curve takes off right at the time of the IR cut.

Most of these big moves appear to be how most professional scalpers make their real good coin. The rest of the day is just taking ticks here and there for their 'bread and butter' so to speak.

To be honest though, anyone with quick execution, news and the balls to get on that move and load up, could have and really should have, made a killing. No idea how some guys with the first two of those 3 ended up down for the day.........

That was literally a cash giveaway for scalpers.

 

[RobinHood]

Looks good TH.
I've never seen quotes look so compacted (maybe its just the photo).

What software is it? It doesn't look like its part of TWS..

 

[RobinHood]

No idea how some guys with the first two of those 3 ended up down for the day.........

some of big dicks ended up down?


or trainees?

 

[el caballo]

TH,

Given the interruption to your account, I'd be interested to know the name of the CFD provider - do you mind providing it?

Thanks,
Greg

 

[Trembling Hand]

Looks good TH.
I've never seen quotes look so compacted (maybe its just the photo).

What software is it? It doesn't look like its part of TWS..

Its NT's Market Analyzer fed with IB data.

TH,

Given the interruption to your account, I'd be interested to know the name of the CFD provider - do you mind providing it?

Thanks,
Greg

No. It wouldn't be fair to exclude the others. They all do it and have.