So you're more of a scalper than a swinger?
So you're more of a scalper than a swinger?
One of the benefits of having you swing traders around (thank you DC and DJ) you have got me to look at the bigger picture more often instead of the inside of my scalpers gold fish bowl. I am starting to look at daily highs and lows a lot more, and it is helping with picking subsequent swing highs and lows, especially if you combine them with the low or high of the current morning session.
Case in point. Look where it bounced off for this mornings spike up at 10:30am. It made a perfect 61.8% retracement off yesterdays high and this mornings low. This isn't a coincidence. It is just one of the unwritten guidelines you need to be aware of when new to trading. It doesn't mean that is now the swing high and we should retest the lows. It was just a logical point for traders to sell.
Case in point. Look where it bounced off for this mornings spike up at 10:30am. It made a perfect 61.8% retracement off yesterdays high and this mornings low. This isn't a coincidence. It is just one of the unwritten guidelines you need to be aware of when new to trading. It doesn't mean that is now the swing high and we should retest the lows. It was just a logical point for traders to sell.
Attachments
DaddyJohn
Experienced member
- Messages
- 1,375
- Likes
- 9
I have being following the technique now for 3 weeks and have had some good and some bad success.
the good has come when I have followed the process , being patient and let my trades run.. the bad has come when I have tried to use Taylor to think about direction and then scalped that direction during the day.. the latter works if you are in a strong trending day , but in this current chop it has being disastrous. In my view if you are going to use Taylor , then you have to be prepared to only do a 1 or two trades a day , and forget scalping.
I have also found that my best results come on the BUY day as price action seems cleaner. But you need to keep a Book and create this yourself so you really get to know your market well
Dick Lexic
Veteren member
- Messages
- 4,954
- Likes
- 124
Here’s a wee indicator some of you might find helpful. I have tried it out for a few weeks now and find it quite good but like everything else it won’t work all the time so maybe just use it for confirmation or timing you trades. It has kept me out of some stonkers but it has also kept me out of good trades when the indicator is at extremes but the market just keeps moving in the same direction. Remember it’s all down to probabilities like, the volume was probably selling, the support will probably hold, DL is probably the best looker on this thread and so on. 
I like to keep things simple and they don’t come any simpler than this.
RSI2 Just set RSI at 2 and that’s it, well I said it was simple
PS it nailed 59 on this morning’s hourly chart:cheesy:
You’ll get all the info here it should keep you reading for about 2 mins ha
TradingMarkets | How to use the 2-Period RSI
I know some of you will already have seen this but it might help the newbees
I like to keep things simple and they don’t come any simpler than this.
RSI2 Just set RSI at 2 and that’s it, well I said it was simple
PS it nailed 59 on this morning’s hourly chart:cheesy:
You’ll get all the info here it should keep you reading for about 2 mins ha
TradingMarkets | How to use the 2-Period RSI
I know some of you will already have seen this but it might help the newbees
Attachments
Many thanks Dick - RSI works great in a ranging market. Most oscillators do. The best way to use RSI in a trending market is to stay in the trend while the RSI is oversold or overbought and exit when it isn't. That's a Rockwell Trading strategy. They use a 5 period RSI.
Dick Lexic
Veteren member
- Messages
- 4,954
- Likes
- 124
JER - any reason for the opinion? Unless it can take out the 61.8% retracement level of 5412.5, then it should drift back down again. I favour a sideways day myself with the low already in, but maybe not the high yet. We've got Phily Fed and Existing Homes at 3pm. I am expecting both to be better than expected. Will it be enough to cause a break to higher levels, maybe just.
splashy
Well-known member
- Messages
- 368
- Likes
- 67
Hmm, I've always viewed scanning for good trades as looking for a hot date - you know what you are looking for but they don't come along to order too often...
- most candidates aren't even close so be patient and if she's not hot enough, don't settle for second best. Hence expect the odd baron patch if you expect to keep your standards high. Nothing wrong with staying in alone some nights...
- some candidates might have some of what you are looking for but don't quite fit the bill - play these by ear, you might be surprised.
-even if they do fit the bill, it might not work out quite as you'd anticipated so be prepared to cut the night short if its not working out.
...but when one works out properly....you'll be happy you waited!
Dick Lexic
Veteren member
- Messages
- 4,954
- Likes
- 124
is this ss day? market goes higher sucks in all the longs then falls like a lead baloon....
DaddyJohn
Experienced member
- Messages
- 1,375
- Likes
- 9
its trading like a SS day Dick.. but I had this down as a Buy day today .. I think the news flow this afternoon has scuppered their plan to take it higher before then selling it down.
If we are going to stick with the same theme.....apologies to the fairer sex.......scalpers on the other hand are just looking for any opportunity and if she turns out to be nice, move on once you have achieved your target or if she bites back, dump her at the first opportunity. Scalpers are not particularly picky and tend to hop on the first bus that comes along. They rely on spotting the signs that she is not all what she seems, and get out before there is any damage. But every scalper could benefit by just being a little bit more picky.
DaddyJohn
Experienced member
- Messages
- 1,375
- Likes
- 9
What I find you have to do Dick (correct me if I am wrong DC) is not to think of it always as Days.. but 24 hr cycles (for futures) sometimes the buy cycle starts early morning or mid day...??!! what I think you are looking for is the mkt trying find a low from which they can buy in order to sell at higher prices.. once that low is formed then this becomes a very significant price for the mkt.
Lots to learn on this technique.
Dick Lexic
Veteren member
- Messages
- 4,954
- Likes
- 124
looks more like a bye day at the mo
Yet another pm session where the market can't make up its mind. All the euro announcement just shake up the market too much to establish any kind of trend. We've got flat boly bands on the 5 min chart, and lots of spinning dojis. I am just trading the range for now. 5375 low. 5400 high.
Phily Fed was no surprise, at least it allowed a quick long and a less quick short. Stay out when mid range. She's not that nice. Wait for the lights to go up at the end of the disco.
Phily Fed was no surprise, at least it allowed a quick long and a less quick short. Stay out when mid range. She's not that nice. Wait for the lights to go up at the end of the disco.
