Which combination of indicators helps detect an impnding upmove or downmove reliably?

[DSM]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

Thanks Dan for your feedback.

As ST stated, the market can pullback from 2SD and I thought it could be used practically in some way in trading, atleast being forewarned and knowing when to book profit and exit a winning hand.

And again as rightly said by you, it is better to have a strategy for such occurances and be prepared knowing what to do in such circumstances.

@DSM

In Metastock software STDV is integrated and in many more advanced trading platforms. If you want to know more about STDV, then go for Don Fishback. He was the one which made that public. For a course of his at the time he made it public you had to pay USD 2500.-- You then have been told and shown a trade with options which made 5 cents profit. :lol: Most people not even understood that after listening to him for two days, as this was some thing very out of the box at those times.

But still, what ST told: Inspite of all the above, we can never predict reversal with 100 % certainty though we can definitely sense that we are about the reverse any time. But even if we get into the position after the reversal , good money can be made. that is the way it is. All that discussion about any perfect system in side way markets or break out systems are not of much help, as there is non such system, only strategies which can handle such situations.

Good trading / DanPickUp

 

[johnnypareek]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

Well,

I don't know what smart traders do to pick right bottom and top.

In last twenty two years what I learnt is that cut your loss and let profit run. I have stop to find holygrail long back. Every indicator or style is good. Thing is it may not be good for you, but a good for you may not be good for others. So, peoples comes out with diff. style of trading just to move you from ur style to new one.

For peoples who have not enough time to sit in front of screen can try one EOD. Its not perfect trading concept but for busy guys its enough.

On Daily time frame. Choose script of front line with daily high good volume.

Scan them to find time when ADX is below both +DI and -DI. Put these scrip on a watch list. And wait for trigger. I guess almost everyone know how to trade ADX.

 

[VIKAS 21]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

Well,

I don't know what smart traders do to pick right bottom and top.

In last twenty two years what I learnt is that cut your loss and let profit run. I have stop to find holygrail long back. Every indicator or style is good. Thing is it may not be good for you, but a good for you may not be good for others. So, peoples comes out with diff. style of trading just to move you from ur style to new one.

For peoples who have not enough time to sit in front of screen can try one EOD. Its not perfect trading concept but for busy guys its enough.

On Daily time frame. Choose script of front line with daily high good volume.

Scan them to find time when ADX is below both +DI and -DI. Put these scrip on a watch list. And wait for trigger. I guess almost everyone know how to trade ADX.

Mr johnnypareek

I have used ADX many times for knowing the strength of a trend, but i don't use it regularly.
Will u elaborate how u use it for reversals??

 

[johnnypareek]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

Mr johnnypareek

I have used ADX many times for knowing the strength of a trend, but i don't use it regularly.
Will u elaborate how u use it for reversals??

Hi,

Say good scrips are like sbin, axisbank reliance recapital etc etc.

On daily chart scan for adx()<pdi() and adx()<mdi(). filter result and add to a eatchlist. Now when in daily tf adx() cut any of one pdi or mdi u trade above high low of that bar.

Say we got SBIN today that has met our condition. Now we will wait adx() to start rising and when its do say increased aroun 2 points, will look if mdi() is above PDI short if pdi()>mdi() then long . You can trade this on intraday but in the direction of day trend.

Right now don't have enough data otherwise a image is better.

hope it will clear a bit

 

[Gaur_Krishna]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

My 2 cents:

One very powerful method is DIVERGENCE at Stochastics. When the bull/bear run is strong, stochastics will remain in OB/OS zone for sustained amount of time and when it comes out and again pulled back/down, it may create lower highs/higer lows. This proves to be a great reversal signal. This is what I have learnt from Smart_trade da & Raghavcc's thread.

Regards,
Gaur_Krishna

 

[DanPickUp]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

A small PDF with some ideas you may like. Just found it today in my library.

The Triangle Trading Method from David N. Windover

Or an other one which is a few houndert pages: 14 Strategies of a millionaire trader from Tim Morge

Both are not much related on indicators, but surely improve knowledge about possible breakout out trades with out being to much depended on any indicators.

Good trading / DanPickUp

Edit: * Van K. Tharp (Trade your way to financial freedom).

*When speed changes direction and begins to accelerate in the opposite direction, you have a potential entry signal.

*I seldom see a system that over a number of years produces profits that are much bigger than the transaction cost it generates - that is if a system generates a million dollar in net profit, then it probably generates more than a million dollars in transaction costs.

*In live and in trading: There will always be someone who picks the losing marbles. Only when you finally realize that the result somehow depends upon you, you will start learning to correct your mistakes. In life and trading.....correct your mistakes.

 

[hc9001]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia


Traders are constantly looking for high probability trading systems that make money 60-70% of the time or more but they dont understand 'What a
Positive-Expectancy System' is.
Most traders dont realize, that 90% of trading performance comes from position sizing strategies not from trading a great system! Why havent you heard this before? Because so few people have a clue about it. - Van Tharp


I believe, people can make millions on trading systems with only one-third [33%] reliabilities also when, the average gains are bigger than the average losses due to good position sizing. :thumb:

Cheers.

 

[VIKAS 21]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

Traders are constantly looking for high probability trading systems that make money 60-70% of the time or more but they dont understand 'What a
Positive-Expectancy System' is.
Most traders dont realize, that 90% of trading performance comes from position sizing strategies not from trading a great system! Why havent you heard this before? Because so few people have a clue about it. - Van Tharp


I believe, people can make millions on trading systems with only one-third [33%] reliabilities also when, the average gains are bigger than the average losses due to good position sizing. :thumb:

Cheers.

I too think position sizing/Risk & money management are much more important than finding high probability reversal methods......

We can do well with only use of support/resistance with use of candlestic patterns if we have good knowledge of position sizing/Risk & Money management.

 

[DanPickUp]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

Hi

To move on with the thread and to further expand thoughts about the subject of the thread title, lets give some more inputs from my side you may are interested in. As always a bit from an other corner, but hope you do not mind, other wise tell me and I will stop it.

Spikes in implied volatility and put call ratios. Doe's not happen very often, but when it happens, bum you get an ODDS home run.

Evert tested that?

DanPickUp

 

[anand23983]

Re: Which combination of indicators helps detect an impnding upmove or downmove relia

Dear Johnny

i need the macd or rsi divergence afl