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A Set of Rookie Questions

  • #1
  • First Post: Oct 2, 2009 6:47am Oct 2, 2009 6:47am
Regarding trading system
Why is it that an effective trading system must integrate a few indicators that are applied in such a way that it is not obvious to most observers?

Regarding Support and Resistance
Does resistance and support levels in longer time frames more stronger than those found in a shorter frames as in the case of bollinger bands?

Regarding Stochastics
Would it be a better confirmation to wait for both lines to cross instead of the single faster line to cross over the overbought/oversold?

Please help.

Thanks
"Nature's law" is called "Reason". When perfectly understood by human it is
  • #2
  • Oct 2, 2009 8:44am Oct 2, 2009 8:44am
Quoting Caesar95
Regarding trading system
Why is it that an effective trading system must integrate a few indicators that are applied in such a way that it is not obvious to most observers?
That's a common myth and completely wrong.

Quote
Regarding Support and Resistance
Does resistance and support levels in longer time frames more stronger than those found in a shorter frames as in the case of bollinger bands?

If you forget about bollinger bands then yes, longer timeframes are more relevant.

Quote
Regarding Stochastics
Would it be a better confirmation to wait for both lines to cross instead of the single faster line to cross over the overbought/oversold?

I don't use that stuff.
  • #3
  • Last Post: Oct 2, 2009 9:06am Oct 2, 2009 9:06am
Quoting Caesar95
Regarding trading system
Why is it that an effective trading system must integrate a few indicators that are applied in such a way that it is not obvious to most observers?

Regarding Support and Resistance
Does resistance and support levels in longer time frames more stronger than those found in a shorter frames as in the case of bollinger bands?

Regarding Stochastics
Would it be a better confirmation to wait for both lines to cross instead of the single faster line to cross over the overbought/oversold?

Please help....
1) There are a bunch of models on the internet that use indicators and that do not. If you are new to the whole chart trading method then I would say forget about the lagging lines. Too often you get caught up in the pretty squiggles. They are not needed to be an effective trader.

2) naturally higher TFs S/R have more impact. Remember these are zones not hard areas. You still need to be aware of Price Action around these zones

3) Price action can tell you a lot more about the sentiment of the market. Look for confirmation on higher TFs. Much like above, candle/bar formations hold more water on higher TFs, therefore a shooting star on a daily will give you much more clarity about they way the market may be moving. Stochastic, like other indicators are lagging, therefore what PA told you 2 or 3 bars ago you are now seeing on a cross of stochastics.

Just my 2c

Razor
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