This is my first post on the forum :-) I am a little nervous about it.
First of all would like to thank Big Mike for a place for me to learn so much from some experienced traders.
I have been studying the markets for over 3 years now, with the last one year being very intensive.
One thing that i have come to realize is that i need to either be a trend trader or a counter trend trader. I chose trend trading and was not really very comfortable until i took out my counter trend momentum indicators from my charts. With the momentum indicators i would always be looking for an end in the trend. Now i just take all bounces off of my moving average of choice. It was hard at first, but eventually i think i am less anxious, and focus more on the price action. Some of the best trend moves seem to occur once all the counter trend people have to cover in a hurry, i think.
The following 3 users say Thank You to nqemini for this post:
I too have not had any success using momentum. I have also looked a volume indicators and it seems to me that for every time they are correct on calling a reversal they were wrong 5 times. There is quite a long thread on volume and several very ingenious indicators based on volume, but again I fins them wrong more often than right. I am wondering if we are getting all of the data to work with or if there is some kind of filtering going on that masks the true volume?
The following 2 users say Thank You to RBSailing for this post:
Don't be nervous to post here. This is an open forum for all of us to learn. I believe you are spot on in developing as a trader. You've got to find what you are comfortable with and stick with it. I'll use myself as an example; I watched and worked at trading CL for a long time. I still watch it but I don't trade it anymore and don't even consider taking a trade on it. One day I probably will revisit CL as a trading instrument but ultimately I found that it was too volatile and required too large of stops for my comfort. All that time that I was trying to trade CL it wasn't a problem with my strategy but rather a problem with me. I was trying to force the proverbial square peg into a round hole.
Find what your comfortable with and master it.
The following 6 users say Thank You to Blz17 for this post:
I also use a price retracement to a MA (wave indicator) and then a price move in the direction of the trend as my entry. For my method and style of trading, the momentum indicators and volume indicators have been ineffective.
I have nice trend fallowing indicator, I attach the screens shots. As you can see it gives very nice reversal point and trend color. It works actually on any market but I mainly use it to trade Forex on charts like 30min, 1h, 4h. Of course it works much more better on trend market than on choppy. On choppy I would not trade it or trade with tight stops and limits.
Last edited by Big Mike; February 26th, 2010 at 09:45 AM.
Reason: no self promotion
The following user says Thank You to precisetrader for this post: