Trend Lines or Indicators?

I use trend lines in my work, and only take oscillators as a supportive evidence. I prefer to follow the classical approach of Edwards and Magee, and it has helped me a lot. I trade Nifty Options and after a lot of thought,I am venturing into day trading!! I have seen markets since 1986 and I think that I am ripe enough to venture into day trading. I have read Dr Alexander Elder, and have prepared myself for day trading, of course, reading Elder, does not give me a licence to be successful at day trading! but anyway, I think I am on a better platform than somebody who lost 90 percent!

The point of this new thread is that will trendlines and traditional TA work in daytrading? My answer is a big YES, because markets work the same way in any time frame, but I would love to have your views.

Regards,

sunil saranjame.

Yes , trend lines should be an integral part of your trading system.

I personally don't care very much for any indicator , but if it works for you , why not ?

Like your measured, thoughtful approach. I am sure a learned, mature, experienced trader like you will never have any fear of losing 90% of your capital (or much much less for that matter).

As for your question, my reply too is a resounding YES for the reason you have already stated in your post.

I'm much too inexperienced to give you any kind of advice but will nonetheless venture to state that you can make use of the Intraday pivot points as additional support & resistance levels since a large no. of day-traders make use of the same and as a result a lot of buying-selling would be expected around these levels.

Regards,
Kalyan.

Dear Sunil

I want to read Dr Alexander Elder Can you Please Tell me from where shall i get this Book

Regards

Manoj

Dear Sunil, How are you???

your views are great!!!! trendlines though simple can ber very powerful when filtered!!!!

Regarding Indicators, one golden fact is they dont move price, price moves indicator.

And ya, regarding Daytrading, there are lot of false breakouts on even trendlines but if you trade the false breakouts , your % success will improve and also the % profit, since many impulsive traders will be traped in the market and will creat big moves.

One trading trick is highly profitable:

With Daily 34 EMA , you determine the trend.
Take 10 min trades on trendline with false breakouts.


Eg, if daily trend is up,
Wait for Bear traps on trendline / support / resistance

If daily trend is down,
Wait for Bull traps on trendline / S / R

When the daily price bars whipsaw the 34EMA , stay out......

I know there are a lot of indicators to determine trend like ADX , MACD..
But EMA's are very good for determinig trend since they are related to price directly.


Hope this improves your daily trading.

Thanxs
winston

dear sunil,

from mere mortals like me - in dt, indicators often provide better signals, as u'd have given up quite a few points b4 trendline is violated (of course u can have tight stops). best signals come from a combination of trendline action confirmed by indicators. one more things that very few people mention in this forum, which is of paramount importance is that looking at multiple timeframe for confirmation. i am sure u have read elder's 2nd book - come into my trading room. Do read LBR, Joe Ross and Chick Goslin b4 u start day trading.

from my experience, dont trade 1 min charts unless u have brilliant real time setup - still remember that it takes time for data to be uploaded and transmitted. 5 mins or 15 mins is great.

great day traders on this forum can tell u much more.

Thank you guys for your response! Manoj Samant, I was fortunate enough to get Elder books from the States as my cousin was coming here... if you stay in Mumbai please see if these are available at Stearling Book next to Central Camera, Fort.

Tnx,

ss.

The advantage of using indicators is that they can easily be backtested. Some of the greatest traders use discretionary trading and so do most consistent losers.
To put it in simple words, as Tushar Chande explained in his book "Beyond technical analysis : How to develop and implement a winning trading system", "if the gods are not in your favour, the odds are"
If you use discretionary trading, make sure you forward test it for a couple of weeks...it should boost your trading tremendously

hi Sunil ji,
Wat seems to me from ur posts thats u hav a trading system in place for Day trading. Can u pls tel us wat ur real plans are ?


So that we can also benifit and Experienced day traders can comment.

Hi Swagat,

I don't have a day trading system as yet, but have zoomed on to Spider Iris as they have good RT data and I want to trade 10 minute charts. This forum has given me a lot, and I will try to give something back!

ss.