No Holy Grail?? Make it Happen by Using Wave Theory

J007RMC

J007RMC

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Develop a Pre-market Routine

Identify a small list of stocks that are liquid and widely traded and know that trade management is one of the most important facets to successful trading markup your charts for support and resistance lines i.e. entries and exits the night before the trade. Always have a contingency plan.

Know the general direction of the market before placing the trade i.e., expected news, earnings, and other events. Just a quick note the 50 ema works great for gauging market direction and more. Often, I check the 4 hr chart for market direction and then scale down to the hourly, 15 min and 5 min charts to find where the strength is for a stock, but my trades are short term in and out same day.

The 15 min time frame is telling and a frame to view the overall wave structure unless you trade mid-swing to longer trades, in that case the 4 hour is as low as I go.

I check http://www.opricot.com/ticker/spy/optiongraphs then mark the lower to higher volume boundaries based off the current weeks options I find it easier to follow the swing highs/lows knowing the put/call options vol ranges.

The most important moving averages in my opinion are the 20 ema, 30 ema, 50 ema, 200 sma. Watch how stocks react to these moving averages. I like to throw up a an 8 ema, 15 ema and a 49 ema but I keep the others up on my chart and just my preference also watch the vwap.
Look for entries near the top and bottoms of the wave B and wave C. Depending on one’s risk/reward these entries are oftentimes profitable.

Always a good idea to know where your trade stands by viewing different time frames. Strength begins from the bottom up so advance to higher times frames on down to the lower times to more accurately find your entries and exits very simple for best odds time your entries and exits by tops and bottoms of wave lines and the/stochastic tops and bottoms.

Most important greed kills accounts Position/sizing can kill accounts Unless you are comfortable with it do not average down on trades. Have a trade plan for entry and exits... Remember to set stop losses. If your down on a trade and how often do stocks recover after a 5- 10% drop and greater? Negative percentages are telling you the trade is not moving in the expected direction. Set your stops accordingly and do not exceed your percentage loss threshold. Unless you have an education in trade management keep it simple. Odds are you will win far more than stop losses.

Educated Traders Place Wining Trades



Style share chart https://tos.mx/UZGduXM



Here is a vastly different approach same concept this uses the harmonic patterns script along with the swing hi/lo and includes the Laguerre lines to help forecast direction with price targets. Also included is the DMI, ADX, RSI lower indicators. https://tos.mx/oQFC5lC

 
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technicallydreaming

technicallydreaming

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Thank you for posting this. Do you trade off the SMI MA or the bars or both?
 
zeek

zeek

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Thanks for sharing, will take it for a drive.
One question, what is the study that plots the red/green reversal bubbles and does this study repaint? @J007RMC
 
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jacqshen

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@J007RMC Wow. I'm liking this! Thanks for sharing! Whats the highest time frame have you successfully used this on?
 
YungTraderFromMontana

YungTraderFromMontana

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I am confused how the high/low adds anything because it just record every high and low. Something that you could observe for yourself.
 
P

Playstation

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I'm not sure how do you trade this? /GC chart

 
T

Thomas

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@J007RMC Didn't you make up the Muathe stuff for me to try?
 
zeek

zeek

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I did some quick backtesting of this system yesterday on some of my favorite scalping stocks and what i found was that the SMI combined with the trend candles worked really well on a 2 min timeframe to catch some good waves. I am going to backtest this even more in the coming days but so far, i am impressed, especially with the SMI.
 
T

Thomas

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I enjoy scalping and I realize their is no holy grail in the world of trading indicators but I do believe this to be as close as I will ever come in finding one. I trade this on a 2 min chart and higher...very simple follow the SMI off tops and bottoms and make it happen. I hope this is helpful. The swing hi/lo the tops/magenta and bottoms cyan colored candles compliments to Tomask and the reversal enhanced indicator by Ben., such a simple and effective system. I trade it everyday without losses however one must have a working knowledge of the market. I adopted this system Feb 17.... no losses to date.

https://tos.mx/oLTrCKo

Take it for a spin

so saying you understand how this works because you set it up in a way you understand. Is it safe to say several of the added indicators are mash ups, you created. I am only trying to make sure I understand what all the indicators are and if I need them? Have you attempted a higher time frame, or you found 2 minutes works optimal.
 
P

Playstation

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don't open the link directly. use the tos open shared item and paste the link in.
 
allpozitiv

allpozitiv

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@J007RMC Just make some look at on demand mode, and I saw that Magenta / Cyan candles didn't stay solid and they repaint.
Some advise please, how do you not mess with that?
 
T

Thomas

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Here's a bit of a different take on the swing H-L. I like to work with trend lines and the True Momentum.
suggestions: share the chart with the share code,....you like Momentum Osc......explore TMO as it develops from Delta,.....I like the simple color candle and can draw in the trendlines manually........
 
T

TosTrd

New member
Btw, what is SMI is it Smart Money Index or Stochastic Momentum Index.
 
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