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sudha78

What are the best technical indicators to daytrade YM?

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Folks

 

I am a newbie.There are many technical indicators like RSI, MACD , sma, ema , Williamson% R, Arms indicator, TRIN etc., All of these may not be good for day trading. May be good for swing trading. What are the best indicators to learn for day trading to find oversold/overbought conditions, trend etc?

 

thanks.

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in my opinion, price, volume and TICKs.

 

I'll also compare all 4 markets with each other to see who is leading and lagging for the day. Along with VIX index.

 

TRIN and put/call, I have it up but they are always in conflict with me, so I just use what best suits me even though they offer clues on its own, I just cannot interpret it to make it profitable for me.

 

everything else lags because its a mathematical calculation.

 

I'd suggest understanding the psychology of trading first because no amount of indicators will help if you don't understand yourself and how you'll fit into the trading environment.

 

Not to be discouraging but its taken me 8 years to understand myself and the trading environment. A whole wack of money along with pain and emotional suffering.

 

The size of your account helps to survive but it is a right of passage to make it in this type of business. If you give up, you'll never succeed at this business.

 

Once you get that, its just a matter of working out the kinks to come up with a trading plan that fits your temperment and personality. You might not even be suited to intraday trade .

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Price and a couple of moving averages. Learn to observe price and how it acts at support and resistance (prior highs and lows, well chosen moving averages or keltners).

 

You can use volume if you trade something where it works (it doesn't work so well in heavily manipulated or very thin markets).

 

Also you could add the behaviour in support and resistance created by action and volume at price levels (aka Market Profile).

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Thanks for the vauable replies. Now I trade continuation and trend reversal but not not looking at technical indicators. I heard that too much of technical indicators is a overkill.

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Folks

 

I am a newbie.There are many technical indicators like RSI, MACD , sma, ema , Williamson% R, Arms indicator, TRIN etc., All of these may not be good for day trading. May be good for swing trading. What are the best indicators to learn for day trading to find oversold/overbought conditions, trend etc?

 

thanks.

 

 

Hello sudha78,

 

Its very interesting you mention oversold/overbought conditions. I had a post with Pivotprofiler indicating the same thing: there is no oversold/overbought condition. My advice for you is to study price action. Market internals will help you significantly such as: TICK, TRIN, PC Ratio, and Prem. But as a new trader you should not enter the wrong path as everyone else does by studying every indicator known to mankind. If you are working on reversal points, identify support and resistance. No need to complicate things, trading is fairly simple. (simple but not easy)

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I personally think price action ( I use candle patterns as I dont know or how to read tape) along with moving average. I try to go with the trend, the path of least resistance is where I want to be.

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oh the dreaded stage of learning about every indicator out there to find the one that is perfect, winner everytime.

 

I remember those times, then you go from 2 indicators to 10, then you try 5, then none at all, then back to 1, all on the same screen to the point its a indicator sandwich with a pickle on top...oh wait, price chart on top.

 

If and when that does happen, its time to look in the mirror and address the real problem.

 

Any trader out there denying they never went through that phase I would say are lying or have never traded before in their life.

 

I'm guilty of the offense.

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oh the dreaded stage of learning about every indicator out there to find the one that is perfect, winner everytime.

 

I remember those times, then you go from 2 indicators to 10, then you try 5, then none at all, then back to 1.

 

If and when that does happen, its time to look in the mirror and address the real problem.

 

hahaha... been there myself. Even bought a book called The Encyclopedia Of Technical Market Indicators my first year in trading. lol Oh man.. how useless it has turned out to be.

 

I use market internals, market profile, and tape. But on my price chart, I have nothing. Just simple pivot and MP levels :)

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I slap roaches with it. And sometimes calve raises. ;)

 

LOL

 

you must have some big roaches! I'm down here in Florida, and my Boris Schlossberg book handles even the biggest ones down here!

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I remember going through the stage looking for every indicator. Plus side? I learned a lot about TA. Then I realized the problem was me, now I just price and my market internals. I have volume on the chart but I never look at it, not really sure why I even have it there.

 

I remember signing up for some momentum trading chatroom, they had roughly 5 indicators that all had to be in confirmation at the same time in order to make a trade. I could never figure out how they made any money since I never once saw them all agree at the same time. Usually by the time most of them were in sync, it was the end of the run and the guys who used price and tape were selling them their shares.

 

It's amazing how trading starts off as some whole new world, then becomes so complex and you stay up all night trying to dominate. Then all of a sudden, it's so simple yet so complex - that's when you get respect for the market.

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i also use no "classic" lagging indicators e.g. MACD, RSI, etc.

 

i HAVE found the TICK DELTA ELD to be VERY helpful in confirming trades, ESPECIALLY for countertrend reversals. it is a wonderful tool

 

mostly i watch key reference areas (market profile levels, pivots) and internals (sectors and advance decline and TICK) and make decisions based on how price reacts

 

i also have a few setups that use specific formulae as to VIX and/or TRIN, etc.

 

but none are particularly complex. i stay away from lagging indicators, which are what retail (ie losing) traders use

 

i pay attention to price, internals, and the big picture

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sudah,

 

YM has a specific internal occillator, unlike any other index. Its called TIKI. ($TIKI - Tradestation ). This is specifically made for day trades as it goes from top to bottom many times every hour. Experiment with this. It will help you.

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Sud,

YM is the ONLY index that has its own internal based oscillator, which makes it ideal for day trading. This oscillator is called $TIKI (NYSE) - (Tradestation), same symbol on most other datafeeds. TIKI goes from top (+26+) to bottom (-26-) every hour. Trade the turns from extreme. the DJI is easier to trade than most indexes because you can keep track of 30 stocks, and it is the only index that is price weighted vs. cap weighted. That means what you see is what you get - a turn up will probably last for a while enough for you to snag a long profit and a turn down will probably last enough to snag a short profit. Do this over and over and over again, until you are 70. I have a very, very wealthy good friend in Chicago that has been doing nothing but this since the 70's using the ticker tape at brokerage houses, with buying or selling the individual DJI stocks, since there was no YM yet. He still does it now using a computer and trading YM (Much simpler and much more cost effective), and he is now 72!!! Gives his profits to charity. It's a game. Sometimes I think that I am a fairly good trader, but I am humbled against experience like that!!

 

regards,

Cogniato

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YM is the ONLY index that has its own internal based oscillator, which makes it ideal for day trading. This oscillator is called $TIKI (NYSE) - (Tradestation), same symbol on most other datafeeds. TIKI goes from top (+26+) to bottom (-26-) every hour. Trade the turns from extreme. the DJI is easier to trade than most indexes because you can keep track of 30 stocks, and it is the only index that is price weighted vs. cap weighted. That means what you see is what you get - a turn up will probably last for a while enough for you to snag a long profit and a turn down will probably last enough to snag a short profit. Do this over and over and over again, until you are 70. I have a very, very wealthy good friend in Chicago that has been doing nothing but this since the 70's using the ticker tape at brokerage houses, with buying or selling the individual DJI stocks, since there was no YM yet. He still does it now using a computer and trading YM (Much simpler and much more cost effective), and he is now 72!!! Gives his profits to charity. It's a game. Sometimes I think that I am a fairly good trader, but I am humbled against experience like that!!

 

regards,

Cogniato

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Anyone using ADX and Directional movement as an indicator for trading YM? Successes or failures appreciated. On the side, anyone read Charles Schaap's book ADXcellence?

 

thx,

 

Fred

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Nice post Cogniato. I've looked at TIKI before using recommendations by Hubert Senters from TTM who did a free CBOT webinar where that was included. I didn't find trading the extremes particularly reliable but that was a while back when I was less experienced trading YM. I'll give it another look. Do you have any other tips on its use?

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