DislikedMy phillosophy in trading matches my phillosophy in life. I have two plans available to me at all times. One plan for when things go right and one plan for when things go wrong. No system is perfect, including S/R trading but the guidlines are simple and easy to follow and with patience yield a pretty good equity curve.
There are two markets out there we must contend with, the ranging market and the trending market. Now this is why I say you don't need indicators. If we say I am trading a range bound market then we can get out the stochastics and the MACD and buy and sell the oversold and over bought conditions. The result will be many small winners and when price breaks out you will get a big loser that (more times than not) wipes out your previous 10-20 winners. Not to mention what the whole ordeal does to you psychologically in terms of future trading. If we trade the trend then we get out the moving averages, maybe throw in some Bollinger Bands and we wait for price to tag the opposite band and then go with the MA's as long as price is above them or below them depending on trend direction. The result will be a lot of small annoying losses and eventually a big pay off if you stay with it.
But waiting for confirmation on indicators is like waiting for a connecting flight at O'Hare Airport. Maybe it's on time and maybe it's not. (maybe it's cancelled) I like how Billy Ray puts it. "WHile other people are deciding if the trade is a good one, I'm already up 20 pips."
A quick look at a 4 hr chart will tell you what kind of market you are in and thus the two plan philosophy.
If it is ranging then I can play a few bounces with tight stops.
If it is trending then I look at where price is and look for a good level for price to pull back to and get with the trend. We tend to address larger trades here but if you have read BRV's post on scalping it is very good for intraday trading.
I have used just about every indicator out there (and here's a dirty little secret from the vaults of trading history that the Guru's won't tell you) Everything works in a trend. Bull and bear markets are very forgiving. What's drawdown really mean if you are with the trend? Assuming you didn't over leverage youself.
But C-note, I'm not here to convert anyone. I assume that is done when people choose to stay with the thread. I am here because I agree with the philosophy of the thread, and because helping people appeals to my humanitarian nature.
I hate to see anyone lead astray by these self-appointed guru's that would relieve innocent people of their hard earned money (money that they could buy food with or even trade with) in return for some supposed turn-key-indicator-ladden-get-rich-quick system.
So if it seems I have overstated my response to your staement, I apologize. My feeling is that one indicator leads to another and to another. It's like offering someone a plate of cookies where only a small amount of dog poop fell in the mix before baking. It probaly cooked out and I doubt you would taste it at all. So who want's a cookie?Ignored
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