Scalping - Which Technicals to use?

[manpreet8791]

anyone with some suggestion on indian stocks.

 

[DaveJB]

RH Ross Hook, TTE Traders Trick entry, barring bizarre coincidence. Joe Ross produces stuff on this -
http://www.tradingeducators.com/trading_philosophy.htm
go there and you can download a couple of ebooks on the topic, and (inevitably <g>) see the adverts for books you might care to buy on the subject.

 

[smccreedy]

I have to say since moving to direct access broker and trading Z and YM with £2.06 / $4.26 round trip commision I've found life easier. £5 a month data feed for level one Liffe and ecbot.

I use a two day five min chart with 9sma, MACD and RSI.

I like to set a daily bias, ie market is trending higher, above 9sma on 30 min perspective etc.

Then take long trades if the market is above the 5 min 9sma and MACD and RSI support the move.

I aim to take 10 FTSE points and 20 DJIA points a day currently using one contract.

I find it doable, many people say it can't be done but maybe there is something in my head that makes it work for me where as position trading didn't so much.

When I have longer track record and more confidence I'll move to INDU from YM and 2 contracts for FTSE, I don't see why with enough practice and discipline I can't aim for £1,000 and $1,000 a day. It might take me years but you have to have an aim don't you.

I personally think boredom might be my stumbling block in the end, I can see me trading larger sizes and shorter days as I seem to tire and harm my account when I'm in not in the mood.

Stephen McCreedy

 

[etherington]

Steve - which data feed do you use for £5 per month?
Ron

I have to say since moving to direct access broker and trading Z and YM with £2.06 / $4.26 round trip commision I've found life easier. £5 a month data feed for level one Liffe and ecbot.

I use a two day five min chart with 9sma, MACD and RSI.

I like to set a daily bias, ie market is trending higher, above 9sma on 30 min perspective etc.

Then take long trades if the market is above the 5 min 9sma and MACD and RSI support the move.

I aim to take 10 FTSE points and 20 DJIA points a day currently using one contract.

I find it doable, many people say it can't be done but maybe there is something in my head that makes it work for me where as position trading didn't so much.

When I have longer track record and more confidence I'll move to INDU from YM and 2 contracts for FTSE, I don't see why with enough practice and discipline I can't aim for £1,000 and $1,000 a day. It might take me years but you have to have an aim don't you.

I personally think boredom might be my stumbling block in the end, I can see me trading larger sizes and shorter days as I seem to tire and harm my account when I'm in not in the mood.

Stephen McCreedy

 

[smccreedy]

It's a feed I get through my broker and have to pay for the Data, I'm with interactive brokers.

Stephen

 

[etherington]

Thanks

 

[new_trader]

PRICE AND VOLUME

Try reading the following two books, then record level II action using a screen capture programme and review and learn.

"Tape Reading & Market Tactics" by Humphrey B. Neill
"Techniques of Tape Reading" by Vadym Graifer

Agree 100%.

Add "Studies in Tape Reading" - Richard D Wyckoff to the list.

 

[new_trader]

I have to say since moving to direct access broker and trading Z and YM with £2.06 / $4.26 round trip commision I've found life easier. £5 a month data feed for level one Liffe and ecbot.

I use a two day five min chart with 9sma, MACD and RSI.

I like to set a daily bias, ie market is trending higher, above 9sma on 30 min perspective etc.

Then take long trades if the market is above the 5 min 9sma and MACD and RSI support the move.

I aim to take 10 FTSE points and 20 DJIA points a day currently using one contract.

I find it doable, many people say it can't be done but maybe there is something in my head that makes it work for me where as position trading didn't so much.

When I have longer track record and more confidence I'll move to INDU from YM and 2 contracts for FTSE, I don't see why with enough practice and discipline I can't aim for £1,000 and $1,000 a day. It might take me years but you have to have an aim don't you.

I personally think boredom might be my stumbling block in the end, I can see me trading larger sizes and shorter days as I seem to tire and harm my account when I'm in not in the mood.

Stephen McCreedy

Stephen ,

Do I understanding this correctly....you are now trading a shorter timeframe after saying the following things to me....and with such conviction too :-0 Why the sudden change? :-0

Stephen McCreedy wrote:

I don't wish to 'day trade' as such and have found a way to make money that suits me and my life, that's all I can ask for.


Ideally I like systems that wouldn't be by the smallest detail but catch the larger moves and look at the bigger picture. Not slating people or provide liquidity / scalp but it's not for me.


new_trader

With respect what you say is only applicable to short term strategies.

You seem to only consider a system one that trades so often a tick here or there is make or break.

If you buy on six months highs and sell on six months low a tick doesn't have much of an impact.

You may consider your assumption that everyone who talks systems is talking scalping or day trading.

You seem pretty mad at the market and seem pretty sure I'm in for a surprise which I think is a little wrong when you have no idea how I trade, for how long I have traded or how well it has gone.

You seem to assume that all of use are complete novices and have no experience of operating any system at all. In relation to me this is simply un true.

I guess from your postings you had a nasty surprise at some point and seem to think we are all due one too, would this make you feel better?


Don't worry about what the market is going to do in the next 5 mins, work out the next 5 months and bet enough on it to matter. I think that is a rough paraphrase of the great man.

It is simply wrong to say that your data needs to be accurate to 1 tick to weigh up the this sort of trading system.

All this frequent trading, if you're not close enough to the market, just makes commision for the dealers and puts you at a disadvantage.

We'll just agree to disagree on this one.

We're both right in our own way I suspect.

(Ignore this post if I am mistaken and accept my apology, but I can't understand why you would even read a thread with 'Scalping' in the title. But if I am right, I think you would owe me an apology!)

 

[mofe2006]

this is what scalping looks like:

http://www.youtube.com/profile?user=mofe2006

 

[mofe2006]

Inter market relationships take a look

 

[guess121]

Any Ideas

I have been looking to use:

CCI and RSI with 100 EMA and looking to buy when the crossover on CCI at 0 occurs to go long?

Comments would great.

Thanks,
guess

 

[laptop1]

I have been looking to use:

CCI and RSI with 100 EMA and looking to buy when the crossover on CCI at 0 occurs to go long?

Comments would great.

Thanks,
guess

Do the opposite of what your indictors are telling you:cheesy:

 

[guess121]

Ok...

Hmmm...

Put it like this, what are your recommendations on scalping?

 

[notouch]

Scalping stocks is the best way in the markets to lose money. It's you against the market makers and programs. Guess who wins?

 

[mofe2006]

Here is a link to a seriers of videos on Scalping the DAX I posted on youtube.

http://www.youtube.com/profile?user=mofe2006

 

[ceydababy]

Scalping.........

Ok...

Hmmm...

Put it like this, what are your recommendations on scalping?

Very Tricky......tried scalping FTSE Cash on SB Account. I had a 1 point spread but still found it difficult. The problem I found was overtrading. I would open up position after position. Take 6 points, loose 6 points....nick 3 points, 5 points then loose 6 again. I would be there for hours to take my 20 point target....It is a lot more tricky than it looks

I found it a war of attrition, both physically, mentally and emotionally exhausting.

I was using a stochastic osciallator and bollinger bands (adjusted) on a 2 minute chart. I gave up on it after about 8 weeks of struggling to make money, and have gone back to more traditional day trading methods.

If you are using an SB account the spreads are generally not inducive to alow the scalping of stock.

I have read on T2W a few guys who seem really good at it....but it is not for the novice or the faint hearted (IMO)

 

[nine]

Very Tricky......tried scalping FTSE Cash on SB Account. I had a 1 point spread but still found it difficult. The problem I found was overtrading. I would open up position after position. Take 6 points, loose 6 points....nick 3 points, 5 points then loose 6 again. I would be there for hours to take my 20 point target....It is a lot more tricky than it looks

I found it a war of attrition, both physically, mentally and emotionally exhausting.

I was using a stochastic osciallator and bollinger bands (adjusted) on a 2 minute chart. I gave up on it after about 8 weeks of struggling to make money, and have gone back to more traditional day trading methods.

If you are using an SB account the spreads are generally not inducive to alow the scalping of stock.

I have read on T2W a few guys who seem really good at it....but it is not for the novice or the faint hearted (IMO)

This post brings out the most important point for a scalper (like any other trader).

You get your advantage by waiting until the odds favour a move in the scalp direction of xx points. Then you take it, place stop and target and wait again (not long for a scalp). A (good) trader is like a (good) poker player. She waits for a good hand and then plays to win.

On technicals try a couple of emas to look for bounces from them. If you want another indicator try a stoch or maybe a rsi or cci ... whichever one seems to you to show overbought/oversold situations where the ema bounce is most likely to happen. Set your targets for a small measured move back in the direction of the original trend (some use keltner or bollinger bands to provide targets). Scalps with the trend are the easiest hands to play but you need to learn to wait.

If you're getting a 75%+ win rate than a 1:1 winsize/losssize is acceptable but even for high reward scalping 1.5:1 to 2:1 ratio is going to make profitability easier to achieve.

 

[larry123]

for you traders ...

good gains man !!

YouTube - frankjpmorgan's Channel

 

[2George]

Nine

Good advice Nine!
Just to add a bit of meat to your post I detail my personal settings for scalping and the reasoning behind them.
I use 3 ema's 15/20/50.
I highly recommend the use the 'K' setting of Stochastics 8-3-3 and not the 'D' as it gives early warnings of changes in momentum.
CCI is better for scalping than RSI in my opinion, as it has more functions than RSI. It has divergence, hidden supports and resistances that can be used as horizontal levels or fucrums for the trendlines as well as finding the peaks and troughs if the setting is correct for the timeframe in use.
I agree CCI is more complex but if it is learned then it is a gold mine. I look to match chart peaks and troughs with CCI and Stochastics peaks and troughs for safer scalps.
If the ema's have just started, then scalp with the trend using overbought/sold CCI and Stochastics signals.
A tip I have learned is to watch the ema's to see how long they have been going then look for divergence on either or both the CCI and Stochastics.
I call this 'swing scalping' as I am looking for big scalps at the end of a mini trend but exit when there is danger shown via the CCI and Stochastics.
As a summary, scalp in the direction of the trend until the ema's suggest it is at an end and then look to find the top/bottom of the chart via the CCI/Stochastics/trendlines and then get the big swing scalp at the end.
Finally, trendlines are ALWAYS drawn on opening prices and ignore spikes and opposing candles.
I use two CCI's for better control. a longer term and a timeframe specific CCI, this ensures I identify all the peaks and troughs as well as the recognising the overall trend direction - as confirmation of the ema's.
The reason for the ema's is that you need to know when a mini trend is starting as you should expect divergence, whereas when the trend is coming to an end, the divergence gives you early warning of a swing scalp.
Using the swing scalping technique, it should return an average of well over 1% per day but it requires total concentration.
Unless traders have the time and the patience, trade something less time consuming.
Good luck to all you scalpers, and remember, swing scalping is the most profitable.
Regards.
George
"Trade what you see and not what you hear or hope."

This post brings out the most important point for a scalper (like any other trader).

You get your advantage by waiting until the odds favour a move in the scalp direction of xx points. Then you take it, place stop and target and wait again (not long for a scalp). A (good) trader is like a (good) poker player. She waits for a good hand and then plays to win.

On technicals try a couple of emas to look for bounces from them. If you want another indicator try a stoch or maybe a rsi or cci ... whichever one seems to you to show overbought/oversold situations where the ema bounce is most likely to happen. Set your targets for a small measured move back in the direction of the original trend (some use keltner or bollinger bands to provide targets). Scalps with the trend are the easiest hands to play but you need to learn to wait.

If you're getting a 75%+ win rate than a 1:1 winsize/losssize is acceptable but even for high reward scalping 1.5:1 to 2:1 ratio is going to make profitability easier to achieve.

 

[jhyerczyk]

Here is what I suggest you do.

1. Learn to read order flow first.

2. If you are successful at reading order flow then take a one minute or 5 minute chart and mark in green where you bought and in red where you sold.

3. Take that chart and fill in retracement areas. If you did it correctly you will see the majority of your trades appear in these retracement zone.

4. You may also see where you bought or sold breakouts.

5. The idea is to get used to letting the market tell you when to buy or sell not a technical signal. Remember the TAPE PRINTS THE CHART. This is the fastest way to find an entry. If you try to scalp buy looking at the chart, then the tape, you will be late.