System vs Random (Charting - Tips)

NYMEX:CL1!   Light Crude Oil Futures
932 13 10
Whether it be following a system to trade or draw trendlines , If there is no systematic approach, your chart / trade will be a mess. Avoid as much mess as humanly possible.

The Chart on the left side shows the trend lines violated but no trend reversal in dots. The Counter trend traders were royally burnt.

Similarly, when you have 4 strategies, don't use them all together. For example, John Bollinger Band strategy and Squeeze breakout (Contradicting ideas), Why? - When the Squeeze breakouts, this will hit Bollinger Band Extremes.

Contradicting information on the Multi Time frames - IGNORE if you cannot manage.

A trading system is complete IMO             - Do not follow any strategy that does not give you these.............. This will save valuable time and most valuable buying power.

1. Clearly state Trend {trend following / counter trend}
2. Clearly Identify Setups - No Assumptions or adjustment to variables in finding setups.
3. Good R/R Entry
4. Good Plan to manage
5. Stop loss
6. Targets
Where were you twenty years ago? Seriously, this is very valuable advice. Thanks.
Lol, I was playing with other kids in a elementary school!
"Contradicting information on the Multi Time frames - IGNORE if you cannot manage." - i agree that many contradict and found a lot of pairs like this. What i fail to fully understand is what is the real thing? For each proverb i can find a counter part, for each idea for the buy there probably is a sell. How do you look at things also matters - optimistic or pessimistic. So im left with the question like "is it a lower high, or a change of trend?" What do you recommend`?
If I have a uptrend on daily, I am interested in only buy setups on any time frame below that. So For example, I have a pullback buy on daily, that would be a downtrend on 5 minutes chart, when this trend reversal takes place, is a good buy trigger.
Multi-timeframe analysis is to help, not to complicate... Use higher time frames for confirmation and lower time frames for entries. Daily has a setups, confirm trend with weekly and monthly, look for entry based on 10 mins or lower. I have time frame ratios for every setup to entries chart, when I have time to manage.
2use ucsgears
Do you start with M, then W, then D, then go down to? 10m, 1m? or check 4h 1h as well? And do you need all of them to line up for a buy signal to get in (at times i think that would be a huge miss by many other traders and won't happen very often)
no..... Thats insanity.... rolling over to all kind of time frame. Unless you have a specific setup that make you do this. One of the respected trader makes a funny comment about multi timeframe analysis.
" Look at the Weekly Chart, Daily Chart, Hourly, 10 min, 1 mins, 30 ticks and then find the yellow pages, and call the psychiatrist". This criticism has helped me a lot. Sometime Critics are helpful, rather than those who praise it.
I stick to one time frame for Trend / Setup, Confirmation trend one time frame ratio highers, Trigger one time frame ratio lower. Remember I have ratios. I don't like to call it Multi time frame - Its Triple Time Frame Strategy. DONE
+2 Reply
Want to pay $197 to learn how to draw trendlines? and use the ZIGZAG indicator?
2use ucsgears
How do you find-use zigzag?
I use zig zag from stockcharts, that is a better version. Easy to see symmetry and extension.
2use ucsgears
You dont use it on TV? I have a friend using them successfully (60% 70% of trades in plus) for currency trading on short term - wanted to check it out. What do you think of their use with intraday currency trading?
I do have strategies that gives me edge, I am not going to hunt to learn strategies using Harmonics trading. Although, I know how it works. The big problem is to efficiently build a scanner for the stock market with Harmonic Strategies. In Order to find a setup, I am using 1 or more indicators and scan the market (10k+) symbols. Harmonic trading is good for those who have handful of tickers to watch. That's why its not part of my strategies. I use it only to find symmetry support / resistance (to validate swing structure).
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out