LiamH:
Go and read a book about crowd psychology - "Madness of Crowds" is the famous one. Understand that people don't change, and that trends do exist for a variety of reasons. A couple of these might include 1) information is disseminated to market participants at different times, or 2) it can be in the interest of professional money managers to position themselves with their competitors.
Then try and get a book on sports psychology... One I haven't read, but gets lots of good press, is "Golf is not a game of perfect". Read it and re-read it (whichever book you get).
Then, do a quick google search on basic price action - Trader Vic and Steve Nison will do.
After that, pull up a daily chart of whatever instrument you like. Put on it a 20d Donchian channel and a 50 period SMA. Set up your software to trigger an alert if the high or low of the day breaches the upper or lower quartile of the donchian range (so lower limit = (mid+low)/2).
When you get a signal, take a look at the 50sma to see if it is trending in the appropriate direction (e.g. a pullback to the lower quartile wants the 50sma to be sloping upwards convincingly).
If it is, put a trade in the appropriate direction. Set a stop at 5*ATR(30) equal to 3% of your account. This is a disaster stop, the plan is to get out well before then...
... because you will be looking for weakness in the price action that you have learnt about. Don't put marketable orders in below the most recent low, for example - if it is tested, wait to see if there is any follow through or whether it was just a "toe inthe water' scenario. If it looks bad, close it out - if it looks promising, keep it open.
There you go, for free.
P.S. Tongue in cheek, of course
Go and read a book about crowd psychology - "Madness of Crowds" is the famous one. Understand that people don't change, and that trends do exist for a variety of reasons. A couple of these might include 1) information is disseminated to market participants at different times, or 2) it can be in the interest of professional money managers to position themselves with their competitors.
Then try and get a book on sports psychology... One I haven't read, but gets lots of good press, is "Golf is not a game of perfect". Read it and re-read it (whichever book you get).
Then, do a quick google search on basic price action - Trader Vic and Steve Nison will do.
After that, pull up a daily chart of whatever instrument you like. Put on it a 20d Donchian channel and a 50 period SMA. Set up your software to trigger an alert if the high or low of the day breaches the upper or lower quartile of the donchian range (so lower limit = (mid+low)/2).
When you get a signal, take a look at the 50sma to see if it is trending in the appropriate direction (e.g. a pullback to the lower quartile wants the 50sma to be sloping upwards convincingly).
If it is, put a trade in the appropriate direction. Set a stop at 5*ATR(30) equal to 3% of your account. This is a disaster stop, the plan is to get out well before then...
... because you will be looking for weakness in the price action that you have learnt about. Don't put marketable orders in below the most recent low, for example - if it is tested, wait to see if there is any follow through or whether it was just a "toe inthe water' scenario. If it looks bad, close it out - if it looks promising, keep it open.
There you go, for free.
P.S. Tongue in cheek, of course