2/2/2010 10:08:17 PM
spiderman
Posts: 0
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Drummer~ you should be asking Oscar.....You must use stops. Check out this chart. I have an account with Scottrade. (I'm not ready for futures yet...but hopefully soon..then I'll talk to Oscar..)
On my Scottrade charting, which is minimal, to say the least, I look at two charts for my swing trading.
One is a daily bar or candlestick. I put three moving averages: a 6 (exponential or simple) an 18 expon and a 39 expon,
Put the chart up and study it. Works on indices nicely~
Next, Pull up a 30 minute chart. Using agian, bars or candlesticks. (I prefer candles~ I can see the "shadows" easier, these are the daily highs and low extensions (or "wicks" beyond the body of the candles, shadows tell you a where price was rejected at high or low points.
OK, back to the 30 minute chart. Again...(I call this my trading MA channel) use three moving averages:
Use all Exponential MA's : a 55, a 23, and a 6.
You should be able to see the obvious. Of course, you should always be adding horizontal resistance & support lines, so you can anticipate where price may stall.
Follow Oscar's technical analysis...and his rules. ie:flat tops produce market drops" and his "two day rule" . Use his channels and trend lines on the daily charts.
One more thing I've learned to pay more attention to is volume. Volume for me, so far, is more of an art than a science, but I have used it successfully to mark when an short term bottom or top may have been hit.
If you look at the Dow or S&P on the daily chart I have described above, you will see that price is very close to the 39 EMA. This may be a resistance point, and we see the market sell off at DOW 10,330 to 10,350.
The 39 EMA seems to work nicely on creating a moving average support or resistance line.
So, as of this post, (Close on Tuesday, Feb 2nd), I will be watching for the market to move higher on the open, then I will watch to see how the Dow acts if it reaches 10,330-10,350.
In my analysis, we have had a significant sell off and we are in a down trend. These last two days are the first significant pullbacks we have had...and I will be on guard.
Stating this, the major trend is still up. Since I don't follow Prechter's Elliot wave (More an art than a science), and Gann and Fibonocci get me too much in over analyzing, I try to keep it simple. I hope you find some this useful...And remember, a stop is your best friend. You can't muscle the market. Not even the "Plunge Protection Team" can muscle the market for long. To me price is everything, more than volume and anything else.
Oscar gives away a lot of good infromation on technical analysis, review his archives. And again, talk to him about your S&P trading. He has the knowledge and experience.  Spiderman
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2/12/2010 9:41:57 PM
kp2hot
Posts: 0
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"drummerboy5142" wrote:
New to day trading been doing it one year now. I never placed stop losses in and lost $4000 last week on the ES hoping it would come back up.
My question is I use IB and confused about what is the best option chain to use? When you say to sell or buy the main indice contract (now we are in the Mar10 for instance) where then do I go to purchase the chain? IE look for the one put or call with the most volume or is there some other indicator. Price maybe?
Thanks for any info or if any videos on this please tell me
Drummerboy5142
Options and futures are two different things. Trading strategies would be different for scalping and swing trading. Because of high volatility and risks involved in futures trading, it would suicidal to trade live without stop loss. While you figure out what would suit you the best, it is better to paper trade until you are ready for live trading.
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