|
Mutual Funds - Mutual Funds.
|
|
|
|
|
Posted by Hawkeye Traders on June 23, 2009, 5:59 pm
Part of any trader's success is their indicators. Every trader needs
a good set of indicators, or strategies, to help him consistently take
profits from the market. Your trading indicators are important
foundation in your daily trading. A good system with rules, discipline
and trading skills can produce good results. However, remember,
indicators are simply tools. Without knowing price action or different
market conditions any trading tools can become useless. As we always
teach =93Indicators are only 10%, 90% is the trader=94.
An architect, with a good set of tools, can make beautiful things
because he has a plan, he has the skill to build, and he knows how to
use his tools. However, these same tools do not make him an architect
-- his skill and education make him an architect. Another example is
if your handwriting is bad, you cannot blame the pen you are writing
with. Instead you need to practice your handwriting skills. Every
trader must know how, when and where to use the tools for his
consistent success.
And when it comes to gaining experience, remember, "Rome was not built
in a day, but years=94.
Why are traders struggling even when their indicators give good
signals?
It can be a number of different reasons, lack of guidance, emotions,
trading psychology, or undeveloped trading skills. Trading skills
cannot be developed by simply reading a few trading books or watching
a couple of videos. Trading skill can only be developed by
=93practice=94. Traders have to act without hesitation. Three important
skills a trader has to develop are Confidence, Control and
Consistency. Trade what you see on the chart without any opinion.
There are a lot of software vendors simply teaching their indicators.
Many of them promise that you will be a millionaire in weeks by just
using their indicators. However, believe it or not, no indicator works
100% all the time. The reason is each second in the market is
different. Indicators are programmed based on past performance. We are
expecting =93history to repeat=94. We are trading the "probability" that
it will.
Additionally, your indicator can only give you a piece of information
about the market. It cannot help you to develop your skills or trading
psychology. A trade set-up simply explains =93MAY BE=94. Different market
situation needs different set-ups, an understanding of price
development, and an understanding of who the players are.
Lessons from Legends; a basic understanding on the market
Remember, market moves based on supply and demand. For every seller
there is a buyer. The fuel that drives the price in the market is
Volume not MACD, Bollinger bands or any other indicators. It is only
buyers or sellers. The volume is the total number of shares, contracts
or bonds traded during a specific period of time. It can be daily,
weekly, monthly, minutes or tick volume in any trading markets. Each
volume bar represents the action between buyers and sellers. When
demand (buyers) increases supply (sellers) decreases or when supply
increases demand decreases. When there is a change in price, it is the
result of change in demand and supply. Typical volume only measures
the number of buyers and sellers in the market for that particular
price bar. This type of volume measurement fails to look at the range
of the bar or the open/close of the bar. So if the number of buyers is
greater than the number of sellers, the bar is green. If the number of
sellers is greater than the number of buyers, then the bar is red.
This is a very simplistic measurement of volume and is only valid for
that particular price bar.
With Volume Spread Analysis, we take an in-depth look at not only the
current price bar but the previous price bars, as well as the open,
close, high and low of the bar. In other words, when looking at the
range of the bars, who had more control, buyers, sellers, or was the
volume neutral. By using this method we can actually identify when
the professional money is entering or exiting the market. This will
allow you to understand the price development.
If you are using Volume Spread Analysis in your trading, please ask
yourself the following questions. Even you are not a member of Hawkeye
you can apply these principles for your trading career success.
http://www.hawkeyetraders.com/images/Volume5.gif
The Kiss Indicator simply represents the ratio of buyers and sellers
in the future market. The concept of the Kiss indicator is a broad
measure of changes in supply and demand. The KISS indicator gives you
an overall understanding of the market immediately. The Kiss is useful
to show market momentum, as well as strength, of the futures market
intra-day. A futures trader can immediately see who is in control of
the market that particular day, buyers or sellers and sometimes no
one. If you are a futures trader, stop and ask the questions on the
image below.
http://www.hawkeyetraders.com/images/kiss5.gif
Forex Trading and Volume
FOREX does not have true volume; with Hawkeye we use =93Tick Count=94 for
volume. If trading a tick chart, all volume bars will be of the same
height. However, if we use a minute chart, then we can see the
difference volume bar heights. The difference with the VSA indicator
and a normal volume indicator is the measurement of volume per x
amount of bars, plus a standard deviation. This allows us to see when
buyers or sellers are coming into the market earlier. The final piece
of the puzzle for FOREX traders was to find a way to measure the
currency strength and weak that helps to avoid choppy markets.
http://www.hawkeyetraders.com/images/FATMAN25MAY09.gif
The Hawkeye Fatman is an excellent indicator for forex traders to keep
them from out of trades that go nowhere. The Fatman indicator
displays the strength (or weakness) of a currency when compared to 16
other currencies. The indicator shows when a currency is strong
(upward movement) or weak (downward movement) or not moving
(sideways). To enter a trade with Fatman, look for the currencies
that are moving against each other, ie one is moving up and the other
is moving down then simply wait for confirmation by the Hawkeye
indicators to enter.
Visit our website http://www.HawkeyeTraders.com more videos and chart
examples.
Tip of the day
Remember 3 important skills =96 =93Confidence =96 Control =96 Consistency =
=3D
Trading Success=94
|
| Similar Threads | Posted | | Understanding your trading Indicators, What can indicators do? What can indicators not do? | June 23, 2009, 5:52 pm |
| Trading with No indicators Part 1 of a new series from www.Acetrades.com | December 3, 2007, 3:40 pm |
| Trading with No indicators Part 1 of a new series from www.Acetrades.com | November 4, 2006, 1:25 pm |
| Trading Emini Sp, YM NQ ER with No indicators Part 1 of a new series from www.Acetrades.com | January 2, 2007, 7:08 pm |
| Trading Emini Sp, YM NQ ER with No indicators Part 1 of a new series from www.Acetrades.com | January 4, 2007, 5:59 pm |
| Trading Emini Sp, YM NQ ER with No indicators Part 1 of a new series from www.Acetrades.com | January 8, 2007, 7:00 pm |
| Trading Emini Sp, YM NQ ER with No indicators Part 1 of a new series from www.Acetrades.com | January 13, 2007, 6:55 pm |
| Trading Emini Sp Er Nq Ym with No indicators Part 1 of a new series from www.Acetrades.com | November 27, 2006, 7:37 am |
| Trading Emini Sp Ym Nq ER with No indicators Part 1 of a new series from www.Acetrades.com | November 22, 2006, 8:04 am |
| Trading emini sp er ym nq with No indicators Part 1 of a new series from www.Acetrades.com | November 12, 2006, 9:28 am |
|
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap