Scalping the Index - Pointers Please

[druss]

One Very Important thing to remember.

Only Trade in the Direction of the Moving Averages. If they are all pointing in the one direction. Trade that Direction. If they are not all Pointing in the one Direction you are just guessing...

 

[MRC & Co]

One Very Important thing to remember.

Only Trade in the Direction of the Moving Averages. If they are all pointing in the one direction. Trade that Direction. If they are not all Pointing in the one Direction you are just guessing...

What about fade plays?

 

[prawn_86]

What about fade plays?

And short term scalping where you take a contrarian view...

 

[MRC & Co]

And short term scalping where you take a contrarian view...

Exactly. These are fade plays.

 

[prawn_86]

Exactly. These are fade plays.

LOL sorry. Im obviously not up with the lingo...

 

[skyQuake]

Not sure what you mean by typing your price in and your exit.

They have tear off tickets, so you can have the ticket on top of your chart. You just click the buy/sell button. Then have another tear off ticket right next to the price aciton. Auto Stops only for locking in profits.

Yes, but they lag the charts and update only every second or so. Charts can be ticking wildly so ur order doesnt get filled cause of some crappy price difference.

Also, care with MA. By definition they lag prices. Ok in trends, bad in chop.
imo if they're not pointing in direction then its choppy or consolidating.

 

[druss]

And short term scalping where you take a contrarian view...

Good Luck with that mate.

 

[MRC & Co]

LOL sorry. Im obviously not up with the lingo...

lol.

High volume reversal candles are used often by scalpers I know of, I use them myself when they come up. Especially if the tail can hit a support/resistance or close a previous gap.

Others fade extreme tick readings. Or wait for a shift in tick momentum after a large move.

Look up pipe bottom reversal also, another good play.

No luck needed there, it is a positive expectency methodology for those who use them correctly.

I'm pretty sure TH fades quite often himself.

 

[druss]

The only time I would consider going against Trend is when there is MACD Divergence where Price is making a higher high or lower low where MACD is doing the opposite.

That is it.

 

[MRC & Co]

Many use the same divergence indicator with RSI.

However, it is generally just that, an indicator.

Price and volume are the key IMHO.

 

[skyQuake]

Others fade extreme tick readings.

Mastering the Trade by Brett Steenbarger?
Pity Aus doesnt really have Tick readings though. Works ok on US markets but its too late for me... too often have i sat up till 2am and find no extreme ticks to fade :

 

[Andy_aus]

... just follow the price waves.

Its just like surfing.. but a bit more profirtable

 

[druss]

Water Levels rising, jump in the pool.

Water Levels dropping, jump out of the pool....

 

[druss]

Getting into a Trade is easy. Knowing when to get out is the hard bit.

Practice taking losses. The easier it is to take a loss the easier it is to be successful.

Those that don't know when to take a loss are those that will let the losses run and cut the winners too early.

You want to cut the losses early when they go wrong and let the winners run.

Moving Averages are a great way to let the winners run.

 

[MRC & Co]

Mastering the Trade by Brett Steenbarger?
Pity Aus doesnt really have Tick readings though. Works ok on US markets but its too late for me... too often have i sat up till 2am and find no extreme ticks to fade :

By John Carter you mean? Never read a Mastering the Trade by a Brett Steenbarger.

Linda Bradford Raschke also keeps a firm eye on the ticks from my understanding.

I only trade in US times, but don't use ticks ATM. TS is great for such internals.

As far as the losses part Druss, I'm sure every trader still around knows well and good how to take a loss by now, if not, then watch out!

The fact is, a lot of scalpers use fade plays. You may not and that is fine, whatever works for you. But they can and do make money without relying on luck.

 

[skyQuake]

Ahh thats right Carter. Was advertised on Brett's site.

Druss, today's price action was nice and trending. MA's were fine. A trendline with targets at R1, then R2 would have also worked well. Not saying what you do is wrong, but MA's will seriously hurt in choppy markets (70%) of the time.

Cheers.

 

[MRC & Co]

Not saying what you do is wrong, but MA's will seriously hurt in choppy markets (70%) of the time.

Cheers.

Exactly Sky.

And then comes the period of MAs you are using........

I gather a lot of traders also use an MA flipper.

Then you have things like Cyrox, which is based around MAs from my understanding. So Andy can probably shed a bit more light on that.

 

[druss]

Ahh thats right Carter. Was advertised on Brett's site.

Druss, today's price action was nice and trending. MA's were fine. A trendline with targets at R1, then R2 would have also worked well. Not saying what you do is wrong, but MA's will seriously hurt in choppy markets (70%) of the time.

Cheers.

Yes in choppy whipsawing markets you will get hurt, no doubt.

Chart Patterns are Critical IMO. Support and Resistance is the only real indicator you need. All indicators just follow price. Moving Averages smooth the price. Do not rely on Moving Averages as entry points. Previous Swing Highs and Lows/Fibonacci Retracements.

Moving Averages to stay with the Trend until it bends.

Average Daily Range is also a good way to pinpoint likely reversal points. Previous days highs lows open closes also are key levels.

 

[prawn_86]

Then you have things like Cyrox, which is based around MAs from my understanding. So Andy can probably shed a bit more light on that.

Cyrox is based on EMA's, but it is very subjective and up to the user, as with most scalping.

There are also the indicators (which i dont use) and im not sure what they are based on.

Realistically Cyrox is just about getting to know how a pair moves, and then the EMAs aid in a decison.

 

[Andy_aus]

Cyrox is discretionary pattern based trading.

it uses multiple WMAs on 1 sec charts

Check out the thread by Tayser if u want more details.