Who else doesn't use charts or fundamentals?

mauzj

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Hey,

There's a lot of information about trading using charts and fundamentals to guide decisions, but does anyone use anything totally different?

The legendary Jesse Livermore just read the tape. One of my personal favourites is probably similar in that I just look at the bid/ask depth and take a punt.

What do other traders use?

Mauzj.
 
i just use the highs and lows for the day to make my EOD decisions.....

i suppose that kinda relates to charts, but you know what i mean...
 
mauzj said:
The legendary Jesse Livermore just read the tape. One of my personal favourites is probably similar in that I just look at the bid/ask depth and take a punt.

Yeah, but there was MUCH less volume when he was reading the tape - I don't think it is at all practical in today's market.

Sorry, but I still like charts...

and the Tape...

and Level 2


If I was to look at the bid ask spread on the shares I trade, I wouldn't get very far, a 1c spread doesn't leave much room for analysis :LOL:
 
mauzj said:
One of my personal favourites is probably similar in that I just look at the bid/ask depth and take a punt.
How do you dtermine the direction of your trade based just on depth?

Deeper Bid than Ask = LONG. Deeper Ask than Bid = SHORT?

Do you take depth size into account?

And Delta on the Inside?
 
What do you mean by delta? I do not trade options. Only futures and and stocks.

My method is very different to what you have described. I look for symmetrical patterns in the bid/ask depth to gauge the fair price. I then sell above this value and buy below.


TheBramble said:
How do you dtermine the direction of your trade based just on depth?

Deeper Bid than Ask = LONG. Deeper Ask than Bid = SHORT?

Do you take depth size into account?

And Delta on the Inside?
 
My method is very different to what you have described. I look for symmetrical patterns in the bid/ask depth to gauge the fair price. I then sell above this value and buy below.

Would it be something like this:

Size Price

................5...106.0
...............15...105.0
...............25...104.0
...............22...103.0 - short here
................9...102.0
Inside Ask....7...101.0
Inside Bid.....5...100.0
................5....99.0
...............19....98.0 - cover here
...............24....97.0
...............10....96.0
................8....95.0
................6....94.0

I sometimes watch emini Dow and see Level II setups like this. In this example, there is large market maker's 'visible supply' at 103, and large 'visible demand' at 98. Of course there would be invisible demand & supply, shown on the 'time & sales'.

But I am totally clueless about reading book & tape. Would like to learn more. Would it be possible to make this method into "black box"?

cheers, dejan
 
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hey Guys,

Im pretty new on here,so i hope you dont mind if i maybe add a few things (if its any use at all)..

The thing about charts is they tell you the TRUTH ..!! - try not to focus on all the " whistles and bells " technology too much - take the time to study some basic Dow Theory, and always look at the WIDER PICTURE BEFORE jumping in - !!
 
a representation they are -

and by looking at charts generally, they will keep you in line with price trends.. !!

also, charts take no notice of news or " noise " -
 
...also, charts take no notice of news or " noise " -

Excuse me? By definition, charts include the noise. Indicators, in many cases, were developed to filter that noise. Of course, that just takes you one step further away from what's really going on.
 
Trading without indicators mostly consist of memorizing price patterns, as well, most importantly, the general context market is in.

Advantage of price patterns setup is that there is no lag. Even the best indicators, like Jurik Research ones, have the lag of few bars. Generally that makes you enter late and exit late, so it blunts any edge you possibly might have. Practically you would be taking 1/3 of the move, as opposed to 2/3 with patterns.

If, for example, you are watching 5 min bars, and market is going up, you do not need moving average to tell you that market is going up, you can see it yourself. Or if market is stuck in the range, again, there is no need for an oscillator to tell you that.

cheers, dejan
 
a representation they are -

and by looking at charts generally, they will keep you in line with price trends.. !!

also, charts take no notice of news or " noise " -

Anyone can make a chart move. If the spread is a tick wide, and you take both the bid and offer prices, then you'll make the chart move a tick.
 
what i mean by " noise " - is the opinion of ANY other participants or any of the CLAPTRAP i hear when i put on CNBC or most financial news network... !!

- best way to avoid those " unprofitable boredom trades "..? - simple - WALK AWAY, and DONT TRADE THEM .. !!
 
ME.

Let me tell you a little about what i do.

Step 1
0700 UK time - Remove a dart from my dart-board. Stand the regulation distance 7 feet 9 ½ inches from the face of the dart-board. Close my eyes, and throw the dart at the dart-board.

Explanation
i)If the dart lands in the scoring section of the northern hemisphere of the dart-board, i will go long on this day.
ii)If the dart lands in the scoring section of the southern hemisphere of the dart-board, i will go short on this day.
iii)If the dart lands outside of the scoring circle, or worst still, in the wall, I take this as a sign that today is not a good day to trade, and so go back to bed.

Step 2
A) If i) or ii) occurred (see above in step 1 explanation), I get dressed, have breakfast and watch TV until 0755. Please go to step 3.
B) If iii) occurred (see above in step 1 explanation), I go straight back to bed without breakfast and don't trade at all on that day.

Step 3
0755 UK time - Switch on computer.

Step 4
0800 UK time - Place the days trade - long or short - with broker, and attach the SL exit order.

Step 5
Usually by 0805 UK time - Switch off computer. Go back to bed.

Step 6
1700 UK time - if the trade is stll open, close it for a profit or loss.

Additional comments
It's not quite as simple as it sounds, as entering the trade is one thing, but managing the trade successfully is quite something else. However, with strict stop-loss exit rules in place, I have been able to generate a consistent net profit so far, on most currency pairs that i have tried it with.

The e-book, with a full explanation of my trade management rules, example trades, charts, diagrams, preferable dart-boards & favoured darts etc. will be available for purchase soon.
 
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all depends what time frame your in anyways - Charts tell you the FACTS... !!

Always good to keep in line for the " BIG Moves " - and those very same " charts " - closed a short trade during the tragic events of 9/11 -

a profit of 1200 points to be exact - easiest 240 grand i think ive made - !! -(and that was just a stoopid spread betting account) -
 
Fundamentals are important, of course yea - but only over longer time frames - !!


PRICE is the key... !! - that shows you whats " REALLY GOING ON " ............ !!
 
PRICE is the key... !! - that shows you whats " REALLY GOING ON " ............ !!

While you could say that indicative price (current bid/offer) is what's going on, traded price is not. It's the past. And of course any kind of chart is nothing more than a representation of the past.

That's fine, though. Technical Analysis is about identifying the repeating patterns so we can anticipate them in the future.
 
totally right of course yea, the traded price is in the past - but if the last number was say 50, the one before that was 45 and then one before was 40 say,

you could safely say the markets in an uptrend -
 
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