Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Mattwj everyone is smart in hindsight. Be critical when you're placing trades with real money based on some people here who are looking at price's end result and applying their "Bible" of knowledge to it as if they would have in real time...lol.
Can you help answer these questions from other members on NexusFi?
Yeah that is the problem I have it does make sense afterwards but it always will lol, I know I can do it because a while ago I had a good mentality towards it and was making great trades which had reason behind it but now i'm getting crushed in the markets, like I know the general direction but always end up with no entry or a poor entry, and I don't know what I'm forgetting, traders always say trust your system or something and it will work out in the long run but with this style of trading how do you even make a system.
Well, I originally got taught this by some guy who had been doing it since the original days when they were publishing the blog, and he introduced a lot of this terminology but to be fair I have seen the terminology referenced in the blog, Lakai and other peoples blogs about kewltech, so I think it is accurate.
A photo is the best way to illustrate but a legstart is basically the level of support that was made off the move downwards or upwards.
It is an ambiguous definition...Plot a simple moving average (50) and start thinking in terms of a frame control. Which frame controls a swing? Is it daily, weekly, monthly, all of the above? Start with a daily range. Divide a daily range in half. Is the price above or below the daily 50? Is the price above or below the 50 simple moving average?
What are you trading? I only trade ES and RTY, on 15-minutes. The lowest time frame I use is 3 minutes, but not for the frame analysis.
If the price is below the 50 MA, it means that we are in a downtrend. Here is a little exercise to gain some perspective. Plot the 50 MA on 15 minutes and, if you have a multi-timeframe MA, on that same chart, plot the 50 MA on 1 hour. Always include the data for the full session, so include an overnight (Globex) data. What do you see?
The price always comes back to the 50, basically every day. On a very basic level, if the 15-min 50 MA is below the 1 hour 50 MA, we are in a downtrend. What does it mean? It means that you should not be taking long trades. The odds favor going short, and vice versa. Of course, you can take long trades in a downtrend and you can take short trades in an uptrend, as long as you realize that you're taking counter-trend trades, which inherently have a higher risk.
Now, let's take it a step further. Take a prior day's range (full range, including an overnight session), divide it in half, and plot the high, low and the half (the 50% line) and carry over those lines into the current day. Do that for all days and see how the price reacts to the 50% line.
If the price opens inside a prior day's range, which it almost always does, this is the most immediate frame that controls a retracement up or down of the current day. The price will test the 50% line almost every day. The 1st test is the highest probability trade, the 1st touch. An expected behavior is a reversal.
This is very basic. There are more details, but get comfortable with this first, then we can take it further.
Here is an example of a single frame controlling four days of the price action:
Just regular stocks. I looked into the moving averages on multiple time frames indicator but couldn't really find one for the platforms I use. I sorta get the gist of the image you provided though.
Are after hours and pre-market price movements counted with kewltech's method? Most of the examples he uses are with the /ES so I assume they do count. Some charting platforms don't show extended hours trading so wondering if those charts should even be relied on or not.
You can use the simple 50 MA as a trigger. In fact, there is a very good mechanical system that uses this method as its main trigger, but it has a few more components.
The frame control and retracements work on anything with good liquidity (volume), but as far as I know, this style of trading works best on futures.
Are you interested in daytrading or position trading? If you're interested in holding overnight, there is a much simpler and better system out there. In fact, it is not really a system, it is just one simple indicator (the Clear Method). I know it works great on RTY and probably other futures, but don't know about stocks.
What platform do you use? If it is Thinkorswim, I can probably give you almost anything you need. I have been using it for more than 10 years. If it is Ninja, I don't know much about it yet, just started using it a few days ago.
