Gareth's Strategy 3 Journal

[Grey1]

***********First rule of intra day trading ********


LARGEST TIME FRAME FOR DIRECTION SMALLEST FOR ENRTY ( remember birth of a trend article )

 

[Nastrader]

Thanks guys,

I am enclosing the chart of Both $COMPQ and $INDU .. This is a top down approach trade and as you can see when DOW and COMPQ both were heading down ( remember i said heading down and not when they got to OB or OS limit ) that is the entry as far as market is concern. As far as NVDA is concerend . the stock was the weakest from the open by divergence and this is what you should be concentrating on .. at 14 52 there was a clear divergence between the stock and both markets on 1 min time frame ( this is the time frame you want for your entry .. Always use smallest time frame for entry other wise you are asking for trouble as far as risk is concerend ) . The divegence code I gave you all ,, would have picked that entry for you .

Hope this is clear .

LARGEST TIME FRAME FOR DIRECTION SMALLEST FOR ENRTY ( remember birth of a trend article )

Grey1

Hi Grey1

Glad that this question came up and thanks to Moreagr & Rajibde for raising it.

In order to expand on your 3 trades & your 10-Min Chart, I included the 1-Min Chart, as well with the 3, 5 & 10-Min Charts & annotated them – which are included in the attachment. These were for your 3 of trades with LRCX & NVDA on the 26th, although I’m also only showing the Dow & Nasdaq (NDX).

I’ve also included a chart of a “60-Min,” which shows the continuation of the market’s downtrend direction from the previous day, & continuously being O/S till around 11:00 ET on the 26th.

Grey1, I have two questions:

1) How successful are these kinds of entries by following the market's direction only, without the market being O/S-B, as part of your TA reason for entry? I agree with one of your previous statements, where the first 8 mins or so after the Market’s open it’s chaotic.
2) Does the O/B-S condition apply from the previous days’ close, to the next day’s open?

Thanks Grey1 for sharing the info on your trades, and your clarifications.

NasTrader

PS: MACCI (CCI-6, 5-MA)

 

[rajibde]

***********First rule of intra day trading ********


LARGEST TIME FRAME FOR DIRECTION SMALLEST FOR ENRTY ( remember birth of a trend article )

Thanks a lot Grey1- another step towards learning.
Nas thanks for your attachment-it was helpful to understand it further.

Currently, the higher timeframes show quite positive; except for 1 and 3 min TF all the rest show a positive value; is it reasonable to conclude that the market will open with a positive bias on Monday (assuming there is no adverse news)- am I interpreting it correctly? The reading which I get are as follows-

1min TF -85.---
3min TF -11.--
5min TF +5.--
10min TF +67.652
15minTF +96.160
30min TF +68.778

If this is the case then -will it be logical to target the 'strong' divergent shares from a local support point?

Raj

 

[moreagr]

Thanks guys,

I am enclosing the chart of Both $COMPQ and $INDU .. This is a top down approach trade and as you can see when DOW and COMPQ both were heading down ( remember i said heading down and not when they got to OB or OS limit ) that is the entry as far as market is concern. As far as NVDA is concerned . the stock was the weakest from the open by divergence and this is what you should be concentrating on .. at 14 52 there was a clear divergence between the stock and both markets on 1 min time frame ( this is the time frame you want for your entry .. Always use smallest time frame for entry other wise you are asking for trouble as far as risk is concerned ) . The divergence code I gave you all ,, would have picked that entry for you .

Hope this is clear .

Grey1

thank you Grey1 for your explanation it seems clear now that you mentioned it as the weakest.. it was good that you did get out at the right time due to the reversal a few minutes later up to .50

 

[evostik]

Thanks a lot Grey1- another step towards learning.
Nas thanks for your attachment-it was helpful to understand it further.

Currently, the higher timeframes show quite positive; except for 1 and 3 min TF all the rest show a positive value; is it reasonable to conclude that the market will open with a positive bias on Monday (assuming there is no adverse news)- am I interpreting it correctly? The reading which I get are as follows-

1min TF -85.---
3min TF -11.--
5min TF +5.--
10min TF +67.652
15minTF +96.160
30min TF +68.778

If this is the case then -will it be logical to target the 'strong' divergent shares from a local support point?

Raj

Hi Raj

Personally, I would not make an interpretation based on the absolute MACCI value in the context of what you are saying. Fo me, what is imortant is what 'phase' the MACCI Cycle is in.

Cheers

Steve

 

[rajibde]

Hi Raj

Personally, I would not make an interpretation based on the absolute MACCI value in the context of what you are saying. Fo me, what is imortant is what 'phase' the MACCI Cycle is in.

Cheers

Steve

Hi Steve,

Thanks for the reply. My question is based with a view to clarify in my head -to see if I have understood G1's reply.
Am I incorrect in assuming that one would decide on the phase from these figures itself? i.e. if one sees these kind of figures during the intraday , then will it not be a logical conclusion for that time to be that the market is on a climb (or have I not understood the cycles at all )?

Cheers

Raj

 

[evostik]

Hi Steve,

Thanks for the reply. My question is based with a view to clarify in my head -to see if I have understood G1's reply.
Am I incorrect in assuming that one would decide on the phase from these figures itself? i.e. if one sees these kind of figures during the intraday , then will it not be a logical conclusion for that time to be that the market is on a climb (or have I not understood the cycles at all )?

Cheers

Raj

Hi Again Raj

Lets say that you view the 10min timeframe to be in a cycle mode and is currently reading, say, +65. If it is on its way 'down' from being overbought then would you not see this as 'downwards' pressure as it makes it way (potentaily) to being Oversold?

See what I mean?

Cheers

Steve

 

[kako]

Hi

what about adding multiple time frame's MACCI value and make 1 oscillator? is this a good approach?
this way we can add several and more timeframes, and see them all together. for example adding MACCI(1Min)+MACCI(3Min)+MACCI(5Min) could result in an oscillator. when it's more than around 250 or 300, we can be sure it's relatively high on all of our desired TFs?

Regards
..................................
Kako

 

[samtron]

Thanks guys,

I am enclosing the chart of Both $COMPQ and $INDU .. This is a top down approach trade and as you can see when DOW and COMPQ both were heading down ( remember i said heading down and not when they got to OB or OS limit ) that is the entry as far as market is concern. As far as NVDA is concerend . the stock was the weakest from the open by divergence and this is what you should be concentrating on .. at 14 52 there was a clear divergence between the stock and both markets on 1 min time frame ( this is the time frame you want for your entry .. Always use smallest time frame for entry other wise you are asking for trouble as far as risk is concerend ) . The divegence code I gave you all ,, would have picked that entry for you .

Hope this is clear .

Grey1

Hi Guys,
Does anyone know, normally, which is the lead or lag (if any) of these two indicies?

 

[rajibde]

Hi Again Raj

Lets say that you view the 10min timeframe to be in a cycle mode and is currently reading, say, +65. If it is on its way 'down' from being overbought then would you not see this as 'downwards' pressure as it makes it way (potentaily) to being Oversold?

See what I mean?

Cheers

Steve

Hi Steve-thanks for your reply; (I should have made it clear)- I do see your point but lets say the cycle has gone from OS and now all the higher TF show +ve value then does my interpretation look good (as was the case on Friday close the MACCIs went from OS to +ve values i.e. over the last 2-3 hrs from closing)?

Raj

 

[Nastrader]

Hi Guys,
Does anyone know, normally, which is the lead or lag (if any) of these two indicies?

Hi Samtron,

I can’t answer your question directly, so I’ll give you my own opinion.

I have found that with the DOW (30 Big Cap Stocks) when just one stock has a fabulous Earnings report, this one stock can sway the entire DOW upwards. Yet I trade the NASDAQ stocks most often, so I keep one set of MTF charts with both superimposed with their MACCI’s as well, as shown in my last post # 142, in this thread. I use the NDX cash market (NASDQ 100), since it represents the top100 leading stocks in the NASDQ.

Now I don’t know if you’ve heard the expression in the US, I’m from Missouri (one of our 50 States) “SHOW ME.” Missouri is called the Show Me State. So I don’t trust neither market’s indices.

But to keep it simple I'd follow Grey1's advice to use the DOW as your leading market indicator, since you use TS, while I use a different platform.

Anyway, I keep an eye on both for verification. Usually they both are in step with each other, but on occasion both the Dow & Nas do move apart at times, and they also oscillate in their own directions. The oscillations occasionally vary in the larger TF’s (ie., 5, 10 & 15, etc) as much as 200, that is one is + 100, while the other is – 100.

Remember, when the market (both or all), are trending up, our oscillators become useless (since they provide false O/B conditions when trending upwards), and the only thing to do for a trade is look for a pull back and take a ride.

Bottom line is that I do have my codes set to the DOW as Grey1 has suggested, but it also includes my codes set for the NDX (Nas-100), and Compx) as well. It gives me more confidence to have confirmations – imo.

Since you have TS I’d suggest continued use of the DOW in your codes as you have in the past, but when you’re ready for an entry, just include a glance at a NDX chart for confirmation. Another fact is “who could argue with Grey1’s outstanding results.”

Disclaimer: All of this is IMHO – lol.

NasTrader

 

[samtron]

Hi Samtron,

I can’t answer your question directly, so I’ll give you my own opinion.

I have found that with the DOW (30 Big Cap Stocks) when just one stock has a fabulous Earnings report, this one stock can sway the entire DOW upwards. Yet I trade the NASDAQ stocks most often, so I keep one set of MTF charts with both superimposed with their MACCI’s as well, as shown in my last post # 142, in this thread. I use the NDX cash market (NASDQ 100), since it represents the top100 leading stocks in the NASDQ.

Now I don’t know if you’ve heard the expression in the US, I’m from Missouri (one of our 50 States) “SHOW ME.” Missouri is called the Show Me State. So I don’t trust neither market’s indices.

But to keep it simple I'd follow Grey1's advice to use the DOW as your leading market indicator, since you use TS, while I use a different platform.

Anyway, I keep an eye on both for verification. Usually they both are in step with each other, but on occasion both the Dow & Nas do move apart at times, and they also oscillate in their own directions. The oscillations occasionally vary in the larger TF’s (ie., 5, 10 & 15, etc) as much as 200, that is one is + 100, while the other is – 100.

Remember, when the market (both or all), are trending up, our oscillators become useless (since they provide false O/B conditions when trending upwards), and the only thing to do for a trade is look for a pull back and take a ride.

Bottom line is that I do have my codes set to the DOW as Grey1 has suggested, but it also includes my codes set for the NDX (Nas-100), and Compx) as well. It gives me more confidence to have confirmations – imo.

Since you have TS I’d suggest continued use of the DOW in your codes as you have in the past, but when you’re ready for an entry, just include a glance at a NDX chart for confirmation. Another fact is “who could argue with Grey1’s outstanding results.”

Disclaimer: All of this is IMHO – lol.

NasTrader

Thanks Nas, as always

When the ducks all line up shoot! (or in our case click).

 

[garethb]

Thanks Grey1 and everybody else for your contributions. Sorry for lack of response, I have been hit by some kind of virus (human not computer) for the last week or so. Now mostly better apart from a cough and am starting to digest the feedback.

Thanks

Gareth

 

[evostik]

Hi GarethB

Hope you are well.

It would be interesting to know if you carried on trying to implement Strategy 3 and, if so, how are you managing with it now?

Cheers

Steve