Combining Candlesticks, Indicators, and Pivots

[Soultrader]

There are a variety of methods in trading. I recommend you start reading about the methods of other traders and find what may fit you. For example, some people use price levels based on fibs or pivots, Others use volume analysis, market profile, tape, etc..

It all depends on your style of trading, Do you want to be in and out in a matter of a few minutes? Are you looking to capture the bigger intraday swing? Would you want to make 20-30 trades a day? Self-understanding in trading is vital for success.

There is no simple solution in trading.... those who seek for a simple method to follow or their neighbors advice is destined to fail.

[jacobnbr1]

I totally understand. It simply is not me to day-trade intra day, i do not want to tie myself to thin as i have a full time job that requires a-lot of attention but does include computer internet work.

I was thinking that an idea would be 1-5 day hold time.

The reason i am asking for the advice is because i do not want to use the wrong tools for the right job.

[Soultrader]

If you have a full-time job other than speculation, day trading will be hard to do. I think your 1-5 hold time is perfect for your situation.

Look into studying technical analysis. Learn price levels of support and resistance. Identify high volume areas and trade the charts. Make sure you develop trading strategies for each pattern you decide to trade.

If you are interested, I recommend reading How I Made $2,000,000 In The Stock Market by Nicolas Darvas. He has a very interesting theory called the Box Theory which he applied to the stock market. His timeframe was also similar to the timeframe you are looking at. The book taught me alot about understanding price levels.

[Stockaddict]

jacobnbr1,

If you don't mind me asking, what stocks do you usually trade? Do you have a select group of stocks you prefer? Or do you go where the action is?

Thanks

[jacobnbr1]

	Quote:	Stockaddict
	jacobnbr1, If you don't mind me asking, what stocks do you usually trade? Do you have a select group of stocks you prefer? Or do you go where the action is? Thanks

Well i normally keep an eye on the form 4 sec filings daily, then when i find one that meets my criteria i will focus on the company to determine if the insider buys are " SMOKE AND MIRRIORS" or legit.
If the company seems to have a good fundamental background i will chart the last 6 month and then three months and then find a good buy point and start with a small position and add on pull backs etc.

One stock i will toss out as an example is TAG as being a earnings play turn-around. Massive insider buying on the direct markets..

MFLX is a stock that has smoke and mirrors, as insider buying is listed but not on the direct open markets. These buys that are going on are what appears to be a ira, trust, or some kind of individuals retirement plan.
Which would reflect nothing on price action in the near future.


chris

[jacobnbr1]

Ok i have some books and a few audio books on the way also.

Until the can somone help me with setting up a chart?
I normally use BigCharts: Stock Charts, Screeners, Interactive Charting and Research Tools and i want to try and explore a chart with some dma's, or ema's with a few indicators to get familiar with. I have read in many books that dma works well.

I was thinking if i wanted to place trades with an idea of holding for a week or so i should plot them on a 10 day charts with a breif look at the 6 month chart to confirm a trend is preasent? would this be accurate?

chris

[Soultrader]

Hi Chris,

What kind of help do you need? Do you have access to a trading data vendor like Tradestation? These software come with alot more tools of the trade.

Also it is a good idea to use multiple timeframes. Look at the bigger picture first then narrow it down to time your entries or exits. You should use a weekly, daily, 60 minute, 15 minutes, and perhaps a 5 minute chart to time your entries.

[jacobnbr1]

I do not have a data vendor like tradestation. I am not sure how tradestation works, I am sure there is a fee for the data correct? Do you have to have a trading account to veiw their data?

How about telechart service? i have been looking at that. sounds kinda cool.

thanks. chris

[Soultrader]

I have an account with Tradestation and I make over 10 roundtrips a month so my software fee is waived. However, you can still use Tradestation for I believe $99 a month plus data fees.

If I remember correctly, Telechart is Worden? They do have a great charting sofware but I prefer Tradestation over any data vendor. The only fault is that they do not have market profile charts.

[jacobnbr1]

And market profile charts are what? Are these charts needed to swing trade?

thanks