I have had success swing trading trends by using a couple moving averages, multiple time frames, and price action.
Over the past couple months, I've had more time on my hands so I've been developing an intraday momentum system using multiple timeframes and heiken ashi.
When it comes to intraday trading (strictly 8-12 EST for momentum) I've learned that the most important thing is to determine the climate of the market. A momentum system will get killed in a ranging market and vice versa. Eur/Usd seems to range between 1pm EST and 6pm EST
I trade eur/usd, so for example pretend that during the London session, there was lots of good news, then during US there's lots of bad news. Now we have the ingredients for strong bullish momentum (doesn't mean you'll get it sometimes it will be reverse). Days with less news seem to range more.
Today is one of those days that has not had any news.
To develop a trading plan for ranging days I will need these things:
1) How do I determine if the market is ranging or trending?
2) If ranging, How do I determine where/when/which direction to enter?
For 1, I could look at the news that has come out during London and the news that will come out during the US session.
Next I can pop on some bollinger bands to confirm that the market is ranging.
In addition to those two things I can use my brain and look at what price has been doing as it approaches the most recent turning point.
For 2, Maybe RNs, Pivots, S/R from a higher time frame, and extremes of the BB can be my hint as to where.
When is an interesting question for me. I really like MTF, but I'm not sure how it fits in yet.
I like the idea of using price action to determine entry but I'm worried that there won't be enough profit margin if I determine my range on the same time frame that I take my entry. If I'm using a 5M for my range and a 1M for my entry, is price action on 1M even reliable enough? (of course I will have to answer all of these questions over time I'm just putting them here for future reference)
I'm curious about stochs in situations like this.
I don't have any problem with indicators, but I'm wary of taking buy/sell signals from them. I would probably just use stochs to feel good about my PA entry.
Ok so the whole time I've been typing this I've noticed a couple potential trades.
Today has been a no-news day, and for the past 2 1/2 hours (since the market opened) we've been stuck in a 30 pip range.
Over the past couple months, I've had more time on my hands so I've been developing an intraday momentum system using multiple timeframes and heiken ashi.
When it comes to intraday trading (strictly 8-12 EST for momentum) I've learned that the most important thing is to determine the climate of the market. A momentum system will get killed in a ranging market and vice versa. Eur/Usd seems to range between 1pm EST and 6pm EST
I trade eur/usd, so for example pretend that during the London session, there was lots of good news, then during US there's lots of bad news. Now we have the ingredients for strong bullish momentum (doesn't mean you'll get it sometimes it will be reverse). Days with less news seem to range more.
Today is one of those days that has not had any news.
To develop a trading plan for ranging days I will need these things:
1) How do I determine if the market is ranging or trending?
2) If ranging, How do I determine where/when/which direction to enter?
For 1, I could look at the news that has come out during London and the news that will come out during the US session.
Next I can pop on some bollinger bands to confirm that the market is ranging.
In addition to those two things I can use my brain and look at what price has been doing as it approaches the most recent turning point.
For 2, Maybe RNs, Pivots, S/R from a higher time frame, and extremes of the BB can be my hint as to where.
When is an interesting question for me. I really like MTF, but I'm not sure how it fits in yet.
I like the idea of using price action to determine entry but I'm worried that there won't be enough profit margin if I determine my range on the same time frame that I take my entry. If I'm using a 5M for my range and a 1M for my entry, is price action on 1M even reliable enough? (of course I will have to answer all of these questions over time I'm just putting them here for future reference)
I'm curious about stochs in situations like this.
I don't have any problem with indicators, but I'm wary of taking buy/sell signals from them. I would probably just use stochs to feel good about my PA entry.
Ok so the whole time I've been typing this I've noticed a couple potential trades.
Today has been a no-news day, and for the past 2 1/2 hours (since the market opened) we've been stuck in a 30 pip range.