Day-trade The Dow Jones For Profit

[alan5616]

What if.....

You were to turn them from 'lagging' to 'leading' indicators ?

You've got my full attention. The only tech indicator that I found to be useful was the CCI using Dr. Bob's adaptation of the Woodie system. There is some credibility for using this strategy, particularly with 5034Z trades.

Apart from TIs, an independent indicator that gives some guidance for market direction (on the Dow) is the $Tick Index. Although, it is not a technical indicator, per se, it is quite useful as are other indices such as VIX, TRIN etc. Forget them all on a Friday

 

[rathcoole_exile]

yes the $TICK is VERY useful, I like it for setting up fades

as is $WPCVA for fading extreme Put or Call situations

 

[Dinos]

ive been trading with george on a regular basis and just laugh at the ignorance on here, i seriously think trading forums are now a complete waste of time and to be honest have probably set me back as too many people who just don't beleive or think everyone is a scammer and remember proabably less than 500 of the 100k members are successful at this, actually ive been on here for a few years now and id say it's much lower......so really by keep on following the crowd and forums i can now see why professional hardly use them and why my trading has gone around in circles for the last couple of years..................Im actually now starting to have some small success at trading by keeping things simple and following strict disciplne and methods that traders on here have said would never work, just goes to show you

Excellent Jason, my old adage KISS (keep it simple stupid), it really does work, you can making trading as complicated as you want, but to keep it simple and fully understand the methodology behind your system will improve your trading. I like these type of forums for entertainment, I don't apply what others say or comment to my strategy, I learnt that many a year ago as I began to doubt my decision making process as others views were contrary to mine, and my trading suffered accordingly. If you have a system/method, and it works well for you, then trade the the bugger and don't listen to anybody else, imho.

 

[jayvin]

hi george,
thanks for the offer. is it ok if you teach me your system trading?

,jayvin

 

[leovirgo]

Friday 1 August 2008

$INDU opened lower into the low zone and stayed in there the whole day.

O/S Exhaustion around 3.30pm, near S1, was supporting all day.

MB= power sell around 3pm but recovered. so buying is acceptable at 6pm, when it retested S1 with no power sell.

MI = bearish after 6pm, but not consistently.


Possible trades

Buy on green dots (MACCI OS+)
Sell on red dots (MACCI OB-)

Good range trades with 40pts in each.

 

[Trader333]

What are MB and MI ?


Paul

 

[leovirgo]

Paul,

MB = market breadth ( advance and decline )
MI = market internals ( volume adjusted )( the lowest indicator on my chart )

I learned about MB from Linda Bradford Rashke (spelling not sure) and MI is my own creation. Grey1 uses $INDU as a kind of benchmark for stocks and I use MB and MI as a market barometer for trading $INDU.
regards,..

 

[leovirgo]

Sell and sell again on power down day

Red dots sell signals rock again today !!

* Market Breadth (MB) bearish since the open, prices pulled back to Buy Number (BN).

* 1st Sell didn't go far because MI (Market Internals) were positive. It showed some buying strength.

* MI turned to negative just before 6pm. Hence Sell signals after that time, 2nd Sell, were more profitable.

* Target L3 (Level3) achieved.

{ Trade station had routing issues today. }

 

[mechanicaldaytrader]

Hey Leovirgo,
My compliments on your TS charting design. Since you use 5 minute charts, what are your stop losses (generally) after entry? Do you have profit objectives at time of entry (for trading range markets) or do you determine the exit later (@ the new dot?), based on current market indicators?

Congrats, looks like you've got a nice chart to use for a long time.

The Mechanical Day Trader

 

[2George]

Update

I haven’t posted for a while and those of you that have been in contact with me you know that I am serious, so here is an update.
I use the CCI on timeframe specific settings to ascertain my S&R levels.
I use Stochastics and CCI for divergence.
I have found that divergence is ALWAYS the first early warning signal, but on its own it is of very little use.
The second signal is ALWAYS a support or resistance.
The final confirmer is ALWAYS the trendline cuts of the price.
These 3 signals together give very high probability trades, whereas individually they are only of partial use.
I am currently in the highly time consuming process of passing the full system on to an MT4 coder with the intention of producing a very accurate FX alert. This has not been an easy task and the alert won’t be released it until the many (many) computer flaws have been ironed out. The coder specialises only in coding MT4, so the alert can only be used on FX, so it will be directed at those who trade FX. I only trade the FTSE and DOW so it will be of no use to me but I know that many of you trade the FX instruments so it is for you that it will be produced.
Nothing will beat the human eye looking at charts for trades, but I hope that an ‘alert’ will be able to attract attention to something that may have been overlooked, missed or even not obvious to a trader at the time - an early warning system, but an alert that even when used it on its own, produces a good profit result.
If it is successful I will pass it to those of you who are interested for independent testing as long as it is ‘used’ and not sold or passed on to others.
So, when the finished article has been made to my satisfaction, and my tests and back tests have been completed, I hope by mid October, I will put it out to those who have an interest.
Regards,
George

 

[leovirgo]

Hey Leovirgo,
My compliments on your TS charting design. Since you use 5 minute charts, what are your stop losses (generally) after entry? Do you have profit objectives at time of entry (for trading range markets) or do you determine the exit later (@ the new dot?), based on current market indicators?

Congrats, looks like you've got a nice chart to use for a long time.

The Mechanical Day Trader

Hi The Mechanical Day Trader

Generally, my initial stoploss is at SuperTrend( which is 3ATR). For short trades that are above ST, 2.5 ATR stop is used. For profit targets, if the MB and MI are in the direction of the trade, then High/Low zones are targets. A new dot (counter trade) is also used to exit any position for range markets. Best wishes,..

 

[leovirgo]

Hi George,
Many thanks for your system. What are your stop and target? By the way, I hope you don't mind me posting my trades here. Best wishes,..

 

[2George]

Not a prob with me as long as you don't sell anything.
My stops are based on the CCI support and resistance rules.
Remember I day-trade so my targets are usually CCI or stochs based and they tell me there is danger, not the price.
I adjust the CCI to the timeframe I trade although with stochs it is a standard 8-3-3 setting but I ignore the 'D' % line and use only the 'K'.
I have levels on the stochs to give me safe entries, and for the exit I chart watch, with my own version of trendlines - based on open prices.
I know about Fib and channel targets but with my timeframe specific set up it is obvious when there is real danger as the CCI gives me an up to date picture of what is happening with divergence and tops/bottoms.
Mine is not a simple system, it is just very accurate and predictive - and very time consuming!
I've done the Dax as an attachment to illustrate how the exit is achieved. I don't look for a number, I just take what the market gives at the time.
George

Hi George,
Many thanks for your system. What are your stop and target? By the way, I hope you don't mind me posting my trades here. Best wishes,..

 

[ryan8247]

Hey George My Name Is Ryan And I Am A Beginning Trader A You Should Give It To Me So That Maybe Some Day I Could Pass It On As Well

 

[orkinv]

please kindly give it to me i would apprteciate it. my email address is [email protected]

 

[2George]

Ryan and Orkinv

please kindly give it to me i would apprteciate it. my email address is [email protected]

There is no 'one way to trade'. Everyone has their own time scales and limitations and what I have shown in the Leo doc attachment above is how I look for and then how I manage a trade.
It is based on trendlines that recognise open prices only (I call these set trap lines), divergence and CCI supports and resistance.
It works very well with any timeframe and nothing, but NOTHING is going to make a beginner into a master in a matter of days or weeks.
Practice, but practice with a purpose of learning rather than making profit to start with, and then the profits will come from knowledge.
George

 

[dahutu]

George
I want to make my first post in this forum here to show my deep appreciation to your great teaching. I am copying and pasting most of your posts and save for my study reference guide. Thanks for being generous to share your knowledge with us...

 

[ivantchourilov]

jump on the wagon, jump jump. for those beginners out there, make sure that you realise how the system works before you jump on it. make sure that you know how you will react if it fails.

good work to george for helping others

 

[sillykiddo]

2Gorge
yeap I agree with ivantchourilov about the last post. in this world it is very hard to find a helpfull person honestly

Thanks 2Gorge

 

[ivantchourilov]

i dont think its a matter of finding a helpful person, i think its just a matter of finding a helpful person for you, for your character, for your goals. to my understanding for a person to do well he has to develop a system for themselves. im not saying that georges system isnt good or successful, it may well be much better than mine, what im saying is that it doesnt necessarily fit the criteria of that particular person... a system has to fit the character of the trader..