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Conflicting information

  #5 (permalink)

Seattle WA
Trading Experience: Beginner
Platform: IB TWS, MC.NET, CQG
Broker/Data: InteractiveBrokers, Optimus/AMP
Favorite Futures: NQ
Posts: 125 since Jun 2017
Thanks: 23 given, 198 received

Grantx View Post
This is a preventative maintenance strategy. Instead of imagining trade signals on this Friday afternoon and taking stupid trades which Ill regret later Im going to distract myself by typing this post. Here is an observation from earlier today.

I was watching a video journal and noticed the chap had quite a few different charts open. Tick charts, time charts, volume profiles, lines, indicators. This is all fine if the information gives you an edge but I must say that it is quite taxing on your mind having to continuously process multiple streams of data.

I have tried watching various different things on a single instrument and in my case it was unsuccessful. The problem is that the more you attempt to complement your decision making by using more tools, the harder your brain has to work (not the other way around).
The more confirmation you seek the more conflict you create.
This is entropy. Things are always getting hotter. The more you try and control, the more chaos you create.

There will ALWAYS be something conflicting with your idea and your job is to remove it. Cut it away like ts a cancerous growth on your method. If it works sometimes then bomb donít need it. You might find that you end up removing everything and relying on one or two simple signals and your own intuition. Thats not a bad thing.

What do you think?

Love the idea of writing a thread to distract you from poor trades

I've recently gotten aggressive in simplifying the display. I used to have 4 charts open simultaneously - 1, 5, 15 minute and the fourth would either be daily or hourly. Each one with stochastics, volume and some with a couple SMAs. I'd occasionally look at a volume / price histogram as well. Like you said, there was always conflicting information to be found in one of the charts, but in my case I'm never holding for very long so conflicting info on a larger time frame often just lead to indecision and missing a great short term opportunity.

Now I stick with the 5 minute chart throughout the day. It has volume and an EMA20 - very Al Brooks... I look at the hourly or daily before sitting down, and then again maybe once or twice during the session as a refresher. Much happier this way. When I see some of the charts folks paste into threads my head hurts

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