Hi all,
Several weeks ago I started to use a simulator of http://dastrader.com for day trading.
This is a direct access with the servers in the Nasdaq, with real time data which guarantees instant executions, ( and comes with a price, higher than other services ) so it is definitely for day trading, right?
Apparently not.. the support of DAS, a guy name Matt, keeps stating that ONLY 12 hours charts shall be used for trading, while the 5' or 1' are a waste of time.
My first question was... aren't 12h charts for swing trades? And would one need real time data for swing tades of several days?
To me, the power of DAS, or any other direct access service, lays on the fact that you can place instant trades in an out, based on a precise price and timestamp on a given minute. BUT, if I have to use 12h charts and do slow trades of hours / days , then I don't understand why would I need a NASDAQ direct access... he answered that 12h are for day trading but he didn't explain why, how... anyone?
After that he stopped answering and kept saying that I have to watch all these videos in order to understand price action , and how to place S/R which are the solely worth indicators for day trading. But these videos relate to forex.
Can we really treat stocks as forex when it comes to price action? because stocks have an uptrend bias, I find it really hard to find securities that have the same patterns as forex.
IMO stocks don't move like forex, for example a currency exchange moves in monthly up/down channels while stocks are generally uptrend, or downtrend, with some corrections, but it's hard to find stocks that move in a horizontal channel pattern on 12h charts.
Plus, you can't just pick up any stock just because it has the right 12h pattern for S/R, there has to be enough liquidity and low bid/ask spread...
so..
How to screen stocks with patterns where it is easy to identify S/R over 12h charts?
How to use level2 quotes , liquidity, volume, to pick a "hot" stock for day /swing trade?
any input is welcome,
cheers!
Alex
Several weeks ago I started to use a simulator of http://dastrader.com for day trading.
This is a direct access with the servers in the Nasdaq, with real time data which guarantees instant executions, ( and comes with a price, higher than other services ) so it is definitely for day trading, right?
Apparently not.. the support of DAS, a guy name Matt, keeps stating that ONLY 12 hours charts shall be used for trading, while the 5' or 1' are a waste of time.
My first question was... aren't 12h charts for swing trades? And would one need real time data for swing tades of several days?
To me, the power of DAS, or any other direct access service, lays on the fact that you can place instant trades in an out, based on a precise price and timestamp on a given minute. BUT, if I have to use 12h charts and do slow trades of hours / days , then I don't understand why would I need a NASDAQ direct access... he answered that 12h are for day trading but he didn't explain why, how... anyone?
After that he stopped answering and kept saying that I have to watch all these videos in order to understand price action , and how to place S/R which are the solely worth indicators for day trading. But these videos relate to forex.
Can we really treat stocks as forex when it comes to price action? because stocks have an uptrend bias, I find it really hard to find securities that have the same patterns as forex.
IMO stocks don't move like forex, for example a currency exchange moves in monthly up/down channels while stocks are generally uptrend, or downtrend, with some corrections, but it's hard to find stocks that move in a horizontal channel pattern on 12h charts.
Plus, you can't just pick up any stock just because it has the right 12h pattern for S/R, there has to be enough liquidity and low bid/ask spread...
so..
How to screen stocks with patterns where it is easy to identify S/R over 12h charts?
How to use level2 quotes , liquidity, volume, to pick a "hot" stock for day /swing trade?
any input is welcome,
cheers!
Alex
