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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: id who wrote (2029)	7/23/1999 2:00:00 AM
From: TheKelster	Read Replies (2) \| Respond to of 18137

Responding to a question asked of me on the Datek thread. Original post: TheKelster, I don't make decisions about the direction of a trend with anything less than 10-15 bars on a 1M chart or 2-3 bars on a 5M chart. Reply: Mind sharing your method about counting bar? I heard someone did that too (from the daytraders chat room) but not sure what they based on. I'm using three EMA, the MACD lines and the MACD histogram, mainly. One of other reason I switch over from IQC is that it does not show the two MACD lines and the histogram. It show the signal line and vertical bars that represent the second lines. It's tough to see when they are crossed some time. pooh My Response: I don't have a method of bar counting. I am actually referring to the passage of time. If a stock streaks down on the 1M for say 5 to 8 bars it may bounce at the bottom. The bounce usually is completed in 2 to 5 bars (dead cat bounce) then the stock consolidates and usually pulls back. You won't know for 10-15 minutes after that what it is going to do. On the other hand if it just sinks and does not bounce it is going to consolidate for some time period before it goes anywhere. So all I am really saying is it takes time for a stock to make up its mind. You just don't see many trends make a complete reversal, that you could verify well enough to reasonably trade,in under a minute. Now if pure scalping is your game then you have an entirely different method of trading and I am sure you need different tools. I do not use "indicators" to predict changes in trends but that is the subject of an entire post I have been working on. You'll see it later. KK