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TFC Commodity Trading Forum

Re: Entering a trade/Harold
In Response To: Re: Entering a trade ()

Using a 1 min chart will likely have you bouncing around like a rubber ball in a 10x10 concrete bunker. If you want fast signals and still use a Daily chart for bigger swings simply adjust your standard RSI 14 setting to an RSI 2 if you use RSI for signals. You could also use it or another low setting that suits your style of trading for the 60 minute chart for sizable swings as well rather than reacting to the noise of the day. The idea is to buy on an RSI 2 reading below 10 and under 5 even better buy. You'd have to check it out to see how it works and fits in with the other indicators you prefer. It comes from the book Short Term Trading Strategies that Work by Larry Connors. There are several strategies for shorter term trading in it. I prefer the tried and true price support and resistance points on most any time frame to trade off of with a MACD Histogram only with odd ball setting of 24-52-9 to spot divergences. Strangely enough a long setting like that is great with the Histogram. It is also what I use on Daily and Weekly charts to determine bull/bear status but no Histogram just lines only. Like a lot of stuff it works. But the smaller the time frame the less valid any indicator is. I stick to 60min charts and 15 minute charts as the smallest time frame. And a 15 minute chart must be confirmed by the 60 minute chart always to be valid. Easy to spot something on a 5 minute chart that doesn't mean squat looking at the 60min chart. Check it out and compare. Never know what might fit in with your trading tools.

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Re: Entering a trade/Harold