Combining Candlesticks, Indicators, and Pivots

[Soultrader]

Market profile charts can be useful for any type of trading. However, they need to be learned first in order to understand them. They are plotted like a bell curve with the concept of time x price = opportunity.

If you would like to study this concept I highly recommend picking up Mind Over Markets. You can also check out some videos from this thread.

http://www.traderslaboratory.com/for...resources.html

[jacobnbr1]

All do respect of your comments and advice, do you think it would be wise to purchase this software when one could familuarize himself 1st with a free type charting program such as StockCharts.com - Simply the Web's Best Stock Charts or BigCharts: Stock Charts, Screeners, Interactive Charting and Research Tools

telecharts is 99.95 per month and tradestation is 249.95 per month- unless you are trading 5000 shares per month and i can't really say i would trade that much while learning to swing trade..

I figured i could start with the basics and when the need to go more technical comes then i could expand to newer and better things.

thanks.
chris

[Soultrader]

You are working with delayed quotes at this moment? I think for the time being you can practice with delayed charts but you should consider paying for real-time data feed. Have you looked into e-signal? I used to use their market profile chart and their fees may be cheaper than Tradestation.

The reason why real-time data is necessary it because you need to understand the flow of the markets as the action progresses. You will also need to work on timing your entry points based. This can only be done with real-time data. I have also used Telechart in the past and I think its a great inexpensive software. But I prefer to use the charting tools that Tradestation has to offer. I am sure Telechart will do just fine for you for the time being.

I actually have got an offer to try out a software free of charge. Its not the best software package but if you are interested let me know. They offered for me to use it free of charge including data fees if I used it for the website. I can maybe let you give it a test run for the time being?

[jacobnbr1]

Sounds pretty good. I have a prophet type service with scottrade and most of my studdies are there and bigcharts.

I know you had said i need to look at the charts in a monthly, weekly, hourly,15 min and 5 min scale.I can set differant time frames in there, what am i looking for? do i want a yearly chart or 6 month or maybe even a 3 month chart?

My charting programs work as follows-
prophet min time frame is 1 month and max is 10 years.
big charts 5 min to 10 years- big charts being a little more defined.

Hope these are not too dumb of questions

[Soultrader]

No question is ever dumb You should look at a bigger timeframe such as the daily or weekly to see the bigger trend. Then you should narrow down to a 30min or 15 min chart to identify support and resistance price levels. Then you should narrow it down to a 3-5minute chart to time your entries.

You are working with delayed quotes?

[jacobnbr1]

I am not sure what you mean by working with delayed qotes?
As of my prophet charts it says it is a java real time qote.

Can you please explain.

chris

[Soultrader]

Delayed quotes are data that is not real-time. Most free charting packages do not provide real-time tick by tick data since this costs exchange fees. Instead they are usually delayed by 15 minutes or more.

If you can not see the tick by tick price movement, you are most likely working with delayed quotes. Can you pop out a time and sales?

[jacobnbr1]

No i can't pop out time and sales...

So let me get this right here, I need real streaming qotes as in e-signal- worden or tradestation.

Plot a chart to identify the term of trend is up for bullish trades and down for bearish-shorts..

Most of the charts i plot are in the middle of some type of cycle where they look momentumless. infact most of the ones i hold now as insider buys look as if the trend is straight line accross. Is there somthing i can do to find candidates for a trend up?

When i do find one that does have a good upward trend i will then be plotting support and resistance for an enty point by focusing closer on the charts as in 30-15 minute charts and then the entry point by 3-5 minute charts upon support touch.

correct?

thanks.

chris

[Soultrader]

It all sounds so easy doesnt it? But trading is one hard profession. You need to identify a trending market from a consolidating market and switch strategies. Its easy to jump on board in a trending market; buy pullbacks or short rallies. However, this only happens 30% of the time. You need to be able to adapt depending on market conditions.

If you are looking for stocks on the fly, take a look at stocks stuck in a range. Scan for stocks trading in a bracket and then plan on buying breakouts out of the range. This is more of a momentum strategy which I do not use.

Are you aware of the support and resistance levels of the stock you are trading? If not, study the chart. Study volume and look for possible reversal price levels. These are the levels you want to be looking for to time your entry and exits. Of course its not that simple. You need to scan for the overall health of the market.

Keep studying the markets and read alot of good trading books. I do not want to see you making typical newbie mistakes that can be costly. There are so many different strategies one can apply in trading. Learning how to identify support and resistance is also a skill. Learning the art of entry or exit is another skill.

If you are not an insider, there is no exact method to understand what the insiders are doing. Study the charts. The charts give off tremendous clues about a stock.

[jacobnbr1]

I would say if i had not already tinkered in the markets- Yes it does seem easy..

Unfortunatly it is not and i already know it.. That is my purpose for further knowledge of t/a.

It almost seems to me that if you chart one out at support and you do everthing according to some text-books they breakdown and fail. I guess this would be a normal trendless market action? However you will find one that actually does do what you thought it would do and further over confident yourself as beleiving you have figured out the nitch for trading and thus overtrading the same set-up to lose at the same play causing confusion of why it didn't work...I personally do not think there is anything wrong with the set-up but bad market conditions for this style...

Perhaps my issue may be from never interacting in a good forum of discusion of why things are the way they are...