Is in index just an aggregate of all the leading companies in that index?
If so, what would be the point in trading it? How can you guess which way 100 companies are going to go?
But if you are looking to trade S&R or perhaps in conjunction with candle patterns, how can an index be a true reflection of a resistance point, for example, if it's made up of many different companies?
As someone who exclusively trades FTSE100, I agree that I find it difficult to spot S&R that other traders call out. I think there is possibly some averaging effect happening. An index is not normally affected by the S&R of a single company, but each company has it's own S&R, when macro-economic news moves the index, each company will move to it's own S&R relative to the news (some contrarian as well) and thus create an S&R in the index.
Mostly, trading indices is about the liquidity and being able to get in and out of the market quickly... i.e. it's scalping territory. I would think (I haven't tried) scalping an individual share would be very difficult, possibly even suicidal.
But if you are looking to trade S&R or perhaps in conjunction with candle patterns, how can an index be a true reflection of a resistance point, for example, if it's made up of many different companies?
When you say fractals, you mean Bill WIlliams' fractals method?
Not neccesarily his method but when you consider that everything in nature is compiled from fractuals. plants,humans etc that brings it into play in the markets because the trader is the injection of nature into the system I dont use his methods per se but I am always aware of the nature of fractuals in the market , I believe it goes part of the way to explain hunan behaviour in the narkets .I guess thats why we keep seeing history repeat itself in so many charts to one degree or another
Just my opinion
But if you are looking to trade S&R or perhaps in conjunction with candle patterns, how can an index be a true reflection of a resistance point, for example, if it's made up of many different companies?
When you say fractals, you mean Bill WIlliams' fractals method?
Anyone who says you can only scalp an index hasn't got a clue about what is what.
Hmmm... I did say "I haven't tried".... Have you?
Someone who makes a "naked" statement like this with no facts to back it up needs to prove that they have the experience and longevity before they can be trusted.
From other statements I've seen you make on this Web site, I don't believe you have any trading experience whatsoever, and I would advise people not to take any notice of what you have to say until you can prove yourself.
Perhaps you'd like to make a few live calls on a single share tomorrow?
oh you mean fibonacci? Bill Williams' fractals has nothing to do with real life fractals
Plants
Are you objecting to the statement made ?
if you take away the axis labels from a chart on any financial instrument, they all look the same, because human nature is the same across all instruments.
Hmmmm... OK, there is definitely some ambiguity in his statement. However, if his meaning is your interpretation then it is too obvious to even mention (i.e. that an index can be invested in both long and short term). I would definitely agree with that.
However, NTs posts always contain some form of snide comment, therefore I'm certain that what he is implying is that a single share can be easily scalped.
I would like him to prove that it can be done profitably. A scalper should be able to pull out a profit every day, so I think if he makes three calls on any single share of his choosing tomorrow, and pulls a profit then he will have proved that a single share can be easily scalped.
However, since he has also said (in this thread) that he "exclusively trades ES" (an index), I believe the guy is just spouting his usual nonsense.
Do you think the laws of supply and demand are so inconsistent?![]()
Thank you for showing on this thread (as you have on others) that you really don't know anything.
Of course the laws of supply and demand are different from market to market and time to time. You really think that buying IBM simply because MCD is rising is a good trade?
Point proved.
Thank you for showing on this thread (as you have on others) that you really don't know anything.
Of course the laws of supply and demand are different from market to market and time to time. You really think that buying IBM simply because MCD is rising is a good trade?
Point proved.