Are you still using the ECO paintbars here in this screenshot? Sorry if you were already asked this in a recent post. I just want to know when the bars turn yellow on your chart. The yellow paintbars on ECO help me identify reversals and chop as well (although I prefer orange but who cares).
If you have abandoned indicators in Panel 2 I completely understand but if not, I use the RSqueeze indicator in the download section. I set all the colors transparent except the BBSqueeze colored dots. The BBSqueeze tells us when Bolinger Bands are inside the Keltner Channel... You can overlay it on many indicators in Panel 2 and it helps to identify chop and when the dots go away, breakout time.
Do you still look at ADX from time to time? I abandoned it because I found so few first crosses and grail plays on ES. I don't see them that often on ZN either. Plus, I know when the market is trending. So why take up room on the chart?
Ok Jeff now I'm convinced that the All you need template works better for YM than for ES. Starting Monday I'm simming it on YM.
I'm also working on incorporating your method of entering on a break of a swing pivot into my ES trading that I was doing before this thread. Before I was entering on the pullbacks. Now I think that's too dangerous. I was profitable with it until August but my stats weren't that great.
Now I'm working on entering on the breakout after the pullback. I do this after volume has confirmed and when the sine wave shows all 3 timeframes in phase. Today was my first day trying this and I finished +$172. On my All You Need chart I was -$50 but I identified 2 big mistakes that I won't make again (trading near a double bottom and a S/R line).
What I liked the most about using breakouts on my tick charts is that my avg win / avg loss was 2.71! Prior to August buying pullbacks and turning points (tops & bottoms) my avg win / avg loss was less than 1. That always bothered me, despite being profitable for several months. Today is just one day but if I can continue then I will have succeeded in getting my win / loss ratio above 1, something I've been after for a long time.
Also take away my two mistakes on All you need and I could have been profitable on that as well. So I think I'm making a lot of progress, thanks to this thread and everyone who's sharing.
I made a new checklist so I though I'd share it and get some feedback:
1 - check forexfactory and pivot farm for news and mark the times on my chart so I don't forget
2 - check the mypivots daily notes for crabel patterns to have an idea of what to expect
3 - put the pivots on my chart (I'm using the pivots from pivot farm)
Well.... I have 2 screens... on the left one I have a 5 minute chart with all the support and resistance, globex high/low, previous day high/low/close.(the 5 minute chart occupys about one third of the screen. Next to it I have the "All you Need" template....(10 range bar) just stripped down....(clean) I draw my trendlines on this chart. Directly underneath the "All you Need" template I have my anchor chart (15 range bar) This is "scrunched" down tho be about one inch high with nothing on it except the Sharky Eco Bar Study.(this has been previously posted) On my right hand screen I have my Superdom on the left with a Data Box and time and sales underneath it. To the right of that I have been using my "All you Need PLUS" this adds the 20 EMA,ADX,3/10 oscillator. I have recieved a lot of LBR training and I still keep and eye out for a good first cross or a holy grail set up now and then. The 20 EMA is often a good pullback location. I had a custom coded ADX which I have previously posted that shows when the ADX is rising or falling. (I was glad to see Cory's post regarding the DMI) So to answer your question... yes ,I still keep and eye on the ADX. I've learned that it isn't so much the ADX level as it is if it's going up or down. Of course under 15 or so means there is no trend. And one oscillator for spotting divergence.
Interesting use of the RSqueeze. I have used that indicator extensively in the past. I basically like it.... especially on the counter trend setting and a little tweak on the settings.
So there you have it ... everything that I watch.
However, I feel I need to add a volume component to the set up. I am watching the "how to trade with volume thread" very closely. Right now I like Big Mikes Volume Graph but I'm keeping an open mind as the programers are working on a better version of the "Better Volume" indicator. You'll notice that TRO has a beautiful tweak of the "Better Volume" that I hope will end up in a Ninja version.
As an index trader I frequently wonder if I should put the NYSE tick and Issues (breadth) back into my bag of tricks. But this is not my focus right now. I'd like to get the VSA "Better Volume" resolved first.
I'll post a "All you Need PLUS" template for you to check out.
Yes, still using EcoBars.... I like 'em. Can't wait for Sharky's new paint bar study to come out.
Last edited by Jeff Castille; September 4th, 2009 at 04:57 PM.
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Excellent preparation for the day..... perhaps some top/down analysis would be a good addition.
Another feature that might be benifical is a "Time of Day" element. Are there certain times of day that are better to trade than others? I think so. I think that it is tremendously important to know when NOT to trade. I found that there were four times in particuliar that were not good for me to trade. Right at the open and right at the close. During lunch in NYC and when the bond market is closing out it makes the stock indicies rough. Tom Busby at DTI calls this time "GRIM REAPER"
While I'm at it More important stuff........ key numbers... for the YM there are certain psycological numbers like all centenial numbers... people get freaked out everytime we get to 100...9400,9300,9500. So if you see a set up on the YM right around a centenial number.... I don't take it. I wait till it goes to 6 above or 89 below. Every market has it's little tricks like that.
That's why I would recommend that anyone learning to trade focus on ONE market, master it, then add or not...... look at Don Miller... he made over a million bucks last year just trading the ES. He's a specialist. Not a bad way to go.
Well, I rambling.
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Oh thanks Jeff. I saw the previous templates and downloaded them earlier. I guess I was referring to the previous post that Cunparis mentioned about possibly removing the MA's and Ecobars and thought you may be removing indicators as well to get a price action thing going. That seems to be the progression here on this thread. I would have to say that I agree about removing most of the MA's. I just leave the 20 EMA up to watch the candles cross it. It's the only thing I keep up from LBR's teachings anymore. Sorry to make you go through that whole "this is my setup" thing again.
I just checked to see if you could overlay Rsqueeze over LBR 310 and it works just fine. I love LBR too but found ECO gives me the same info I want and I like how the new ECO's can change colors below the zeroline. I can see divergences better with ECO too with the 20 and 10 lines up. Maybe we could get someone to do that for LBR... And I have yet to find another trend indicator that gives us a better "trendiness" reading than ADX 14.
I am interested in reading more about the volume indicator development as well. I have to say that some of it has been a little over my head so far. I still don't understand how to read volume with the Better Volume indicator after watching the video. (Maybe I am echoing others views here as well Cunparis). I do think that we all need to have some kind of volume and momentum indicator up to confirm. Until I completely understand volume, I will continue to use JT Real Stats with ECO.
Great Book,am in the midst of it. I like the part where he mentioned
trading purely looking at the pricing without being bothered by news and gossips allowed him to sharpen his system and trade objectively.