Why use price to confirm your trade...why not just use your favorite indicator. Well, this is a chart from Friday, nothing special about it, you could good to any market or any time frame and see the same thing. This could be one of the problem if you just use the indicator to trade off of, false signals.
So let's setup a trading plan real quick.....our setup will be:
1. If the CCI is above zero we look for longs and if below we look for shorts.
2. When the turbo (6) is below or equal to -100 and the CCI (50) is above zero we have a long setup.
3. When the turbo (6) is above or equal to 100 and the CCI (50) is below zero we have a short setup.
Now, let's look at two triggers to entry this trade.
1. When the trubo turns back toward zero and we have 15 seconds left before the close we will entry the trade.
2. When the high of the setup bar (cyan) is taken out without taking out the low we will entry a long trade.
3. When the low of the setup bar (cyan) is taken out without taking out the high we will entry a short trade.
So how would we have done.
Well setup "A", "B", "C", and "D" would have been long trades using just the CCI (50) and turbo (6). 1 winner(A), 2 losers(B,D) and 1 so so(C).
Now let's take a look at using price to confirm the setup. Well, again "A" was a winner, but "B" and "D" did not trigger you into a trade. "C" took out the low of the setup bar and would have voided the setup.
So using just the indicator........1-2-1
Using price to confirm.............1-0-0
Oh yea, I know using price to confirm the trade it only produced one trade all morning, and I am a trader....and just can't sit here waiting for this thing to setup. I need to trade man....can anyone help me, please post your trades in the chat room and help me out....
By the way, if you go and do some research using the secret sauce you will find even a more interesting result.
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11 comments:
Who cares about your great trading, why can't you just call out the trades live in TradingElements or TradersHaven and let us all make money.
Sport, within how many bars of the CYAN bar is the trigger valid?
Susan, you sure are very honest about your not wanting in the very least to improve your trading. You just want to join the sheeple. At least you're very honest about it; credit to you.
Here's a tip for you Susan: Keep out of the chatroom, take your trade when it triggers, manage it according to your MM rules and stay true to yourself. Simple stuff.
Hi Dennis,
This is really good information, please keep posting this kind of stuff. It's really a post from which we can LEARN a lot. Don't need live trading alerts en chit chat, but a method about how I can devellop my own trading plan. Most things I try and research are just failing strategies.
Better learn to catch a fish rather than hoping that one day, sometime, someone else will catch it for you...
Dennis, what is the "secret sauce"? Is it the spread indicator i have see on some of your charts ?
Thanks for the instructive post.
Regards,
Christophe
Everyone knows the secret sauce is a shot of Tennessee sour mash whiskey 5 minutes before the market opens. Gets rid of the morning cobwebs and mental inhibitions so you can pull the trigger on the Senator Frist Trade. Then you're on your way.
Dennis' secret sauce is the fudge made by Gio.
She gives him calls. I am sure of it. I saw it in a chat room. Must be true if it is on the internet. LOL
No, that's not correct. After receiving a call from Gio, he first waits for confirmation from Woodie.
Hey dennis, this was good for a laugh. Love the wit. Some people are not meant to be traders, the sooner they figure that out the sooner they can start on something that they're actually good at. BTW, What in Hades is the "secret sauce". You looking at ATR?
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Oh yea, I know using price to confirm the trade it only produced one trade all morning, and I am a trader....and just can't sit here waiting for this thing to setup. I need to trade man....can anyone help me, please post your trades in the chat room and help me out....
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