https://usethinkscript.com/threads/where-to-start-with-thinkorswim-and-daytrading.20946/#post-152716
If you are looking for an example of a good basic strategy; load @justAnotherTrader 3 Trigger Pillar
and follow along with the below tutorial.
All Trades must have Trend and Support
Trend and support are the daytrader's catalysts** These ensure that a trade moves in the intended direction. Perceived false signals only occur when trend and support are not present. **unless you have some other exterior catalysts: earnings, news, economic changes, etc... |
VIPers use https://usethinkscript.com/threads/the-vip-linear-regression-channel.20522/
Your middle timeframe (your trading chart) is where you analyze the pullback.
Think about it. If the pullback has just occurred there is NO new trend yet, to be observed.
So generally, you will only see glimmers that the trade is setting up.
On your lower timeframe, you want to see the trend to be all bullish, supported and confirming that the pullback has reversed.
2. Never try to guess that price is at the bottom and reversing.
#1 mistake of newer traders is not waiting until price has found support.
Support & Resistance Studies are suboptimal.
To be a profitable daytrader, you must be able to visualize support and resistance.
You want to verify that your entry has support and is not hitting resistance on your lower and middle (trading chart) timeframes, as determined by your support and resistance zones.
Google to find out more or VIPers can go here:
https://usethinkscript.com/threads/support-resistance-your-trade’s-make-or-break.20534/
3. All strategies should incorporate a strength and/or momentum oscillator.
When utilized correctly,
research has found that oscillators are the most profitable daytrading tool for determining entry and exit zones
read more:
https://usethinkscript.com/threads/using-oscillators-profitably-in-thinkorswim.11497/
https://usethinkscript.com/threads/what-are-the-best-indicators-in-thinkorswim.14498/#post-151586
Must read the above links and then VIPers can use this:
https://usethinkscript.com/threads/rsi-ha-trend.19862/
4.
Look for signs of interest. ROC of relative volume, changes in buying/selling pressure, etc...
Here are many VIP Interesting Volume This Way Comes studies:
https://usethinkscript.com/search/1...]=1&c[nodes][0]=60&c[title_only]=1&o=date&g=1
General Forum Volume indicators:
https://usethinkscript.com/threads/favorite-volume-indicators-in-thinkorswim.15694/#post-126275
5. NOW NOW NOW, you can add any of the million indicators found on this forum as your confirming indicators. Go Wild! Anything goes, because you already have all the basic requirements.
A forum favorite is VWAP***, or you can even use repainters!, or anything that you can easily read and discern.
@csricksdds has a bevy of great indicators in his strategies:
https://usethinkscript.com/search/1...[title_only]=1&c[users]=csricksdds&o=date&g=1
Here are some of the member's favorites:
https://usethinkscript.com/threads/...ators-for-thinkorswim.2016/page-6#post-152650
Can't go wrong with:
Anything and everything created by @Jman831
https://usethinkscript.com/search/1286903/?q=jman&t=post&c[title_only]=1&o=replies&g=1
Anything and everything created by @Welkin
https://usethinkscript.com/search/1286915/?q=Welkin&t=post&c[title_only]=1&o=replies&g=1
Anything and everything created by @justAnotherTrader
https://usethinkscript.com/search/1...only]=1&c[users]=justAnotherTrader&o=date&g=1
Never trade on just one indicator.
Whatever your strategy, additional indicator(s) give confirmation that improves your odds of being profitable. As long as those indicators do not have multicollinearity.
Never trade on just one timeframe.
Analyze different aggregations to get a complete picture of what is happening w/ an instrument.
The likelihood of success increases when multiple time frames are analyzed.
Never enter into a trade without a strategy of when you are getting out.
Studies have consistently shown that it is not poor entry points that are causing retail investors to lose money; it is poor exits.
This advice from @Pensar: Any trading strategy, no matter how simple or complicated, will have losses. There is no way to avoid them. That's why it's critical to use stops, regardless of your indicators or method. Research and understand position sizing, probabilities, and risk-to-reward - these are highly important to successful trading.
Never trade against the market.
Remember that indicators only indicate, not predict - Understanding the market structure is critical.
because: Trend Is Your Friend... Always Always Verify The Trend and Volume of the Market!
VIPers read more: https://usethinkscript.com/threads/what-should-i-trade-today.20977/
For more market structure insights:
Look at market and cycle and analyze consolidation/expansion periods
Are there traders that make money and don't follow these basic tenets of Technical Analysis? Absolutely! But if you are not one of them, incorporating these elements into your strategy will help!
You can google the basics of a good strategy for more information. This Technical Analysis Cheat Sheet link has a whole set of articles, I found informative in helping me develop successful strategies. Do not be put off by the word 'dummies' in the title. These articles are comprehensive but understandable.
CAVEAT:
Scalpers (members who trade on aggregations<5min), by and large, eschew technical indicators due to lag.
Read more:
https://usethinkscript.com/threads/price-action-toolbox-for-thinkorswim.10747/
Hope This Helps
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