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    United States
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    Day Trader
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    Classical music

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    Futures, Options
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    TOS Desktop
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  1. “At point A is there a way to tell that the balance of the day will be up?” Your question is an interesting one. After all, what trader wouldn't want to know when a trend has changed? While I can't answer your question exactly, I think I can help you stay in a trade until the trend changes direction. I have recently discovered some valuable indicators. Take a look at the attached .jpg file. Using StochasticFast (34,3) and DirectionalMovementIndex(5,2,2,5), you can get a very good idea of the strength of the trend. I will explain. Use the following rules: 1) When FastK (Yellow) drops below FastD (Blue), and DI+ (Red) is below DI- (Green), and the ADX (Yellow) is rising, you have a strong Downtrend. 2) When FastK (Yellow) rises above FastD (Blue), and DI- (Green) is below DI+ (Red), and the ADX (Yellow) is rising, you have a strong Uptrend. While I am still testing this combination of indicators, so far I have made a lot of "money" in my paper trading account. I trade with thinkorswim, but these same indicators could be set up with other brokers, as long as they allow you to change the parameters on the indicators. Using StochasticFast with K period of 34 and D period of 3, and DirectionalMovementIndex with ATR length of 5, DI+ length of 2, DI- length of 2, and Wilders length of 5, you can duplicate the same results I get. Try it, and let us know if it works for you. Had you followed these indicators on Friday, July 24th, and bought Puts and 9:45 AM and sold them at 10:15 AM, and then bought Calls at 12:15 PM and sold the Calls at Market Close, you would have made significant profit. The indicators help you to stay in a trade with confidence, as long as the ADX keeps rising. While the candlesticks will often drop down, that rising ADX keeps you in for big profits. But make sure you don't jump the gun and get into a trade until all 3 of the elements of each rule are true, or you'll get into trouble. Yes, you'll miss some of the movement, but let these indicators tell you when the trend is strong and when to get in and get out, so you'll make money.
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