This thread is for the guy that is 5 trades or less from being out of the trading game and feels like he has lost his confidence. He is confused, scared/timid and gun shy at the keyboard. This thread is NOT for someone who is experiencing moderate success that wants to shoot down the technique.
The one thing I've noticed is that there is no shortage of advice on the internet on how to day trade. Because of the various techniques and strategies the average guy becomes massively confused. When someone is phasing themselves out of the market it is because their head is so filled with gobbly goop, they can no longer make easy decisions.
So how do we get your confidence back up? With a simple, visual system that is so obvious that you can explain it to your 10 year old nephew. Keep an open mind that my agenda is to help you have several successful trades in a row so you get your edge, attitude and account back to normal. Here we go...
Time frame: 15 minutes
Chart indicators: WMA (weighted moving average)...3, 5, 8, 13, 21
Lower indicators: CCI (default settings of 14, 6)
How to use...
First off, I highly recommend a stock that has high volume. If there are plenty of eyeballs watching it then it will be easy to get in and out of a trade. After that, don't use volume bars to determine your trades.
Second, use only the 15 minute time frame, nothing more. You do not need to look at 3 different time frames for this method.
Third, for the WMA, each number gets its own color. You pick the color of your choice but, as an example, 3 = green. 5 = yellow, 8 = red, 13 = blue, and 21 = black. A person may ask why would you just use the 3 and 21 WMA and skip all the others...that's because you need to see everything line up perfectly before you can take action. You need to have ONE successful trade and then another and then another and then another.
These lines will consolidate like one thick rope strand just before they move...that's something you will want to look for. So if you were gonna go long the WMA lines would begin to separate themselves from one another and you would see (in this order according to my colors above) green, yellow, red, blue and finally black lines. The opposite is true for going short.
The CCI is only to confirm using the signal line crossing over the zero line the general trend.
Remember, we are trying to get your confidence back and all of these visuals will do just that.
I will attach several charts so you can see exactly what it looks like. One will do a zoomed out 10 day visual so you can see the lines constricted then I will do a 5 day so you can see the lines spreading out giving the buy sign, then a closer look using a 2 day chart. Hopefully you will be able to see them. If not, I will load them another way.
The one thing I've noticed is that there is no shortage of advice on the internet on how to day trade. Because of the various techniques and strategies the average guy becomes massively confused. When someone is phasing themselves out of the market it is because their head is so filled with gobbly goop, they can no longer make easy decisions.
So how do we get your confidence back up? With a simple, visual system that is so obvious that you can explain it to your 10 year old nephew. Keep an open mind that my agenda is to help you have several successful trades in a row so you get your edge, attitude and account back to normal. Here we go...
Time frame: 15 minutes
Chart indicators: WMA (weighted moving average)...3, 5, 8, 13, 21
Lower indicators: CCI (default settings of 14, 6)
How to use...
First off, I highly recommend a stock that has high volume. If there are plenty of eyeballs watching it then it will be easy to get in and out of a trade. After that, don't use volume bars to determine your trades.
Second, use only the 15 minute time frame, nothing more. You do not need to look at 3 different time frames for this method.
Third, for the WMA, each number gets its own color. You pick the color of your choice but, as an example, 3 = green. 5 = yellow, 8 = red, 13 = blue, and 21 = black. A person may ask why would you just use the 3 and 21 WMA and skip all the others...that's because you need to see everything line up perfectly before you can take action. You need to have ONE successful trade and then another and then another and then another.
These lines will consolidate like one thick rope strand just before they move...that's something you will want to look for. So if you were gonna go long the WMA lines would begin to separate themselves from one another and you would see (in this order according to my colors above) green, yellow, red, blue and finally black lines. The opposite is true for going short.
The CCI is only to confirm using the signal line crossing over the zero line the general trend.
Remember, we are trying to get your confidence back and all of these visuals will do just that.
I will attach several charts so you can see exactly what it looks like. One will do a zoomed out 10 day visual so you can see the lines constricted then I will do a 5 day so you can see the lines spreading out giving the buy sign, then a closer look using a 2 day chart. Hopefully you will be able to see them. If not, I will load them another way.
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