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FTSE100 - Daily Trades


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Stop placement is a critical part of a trading strategy no doubt @DSchenk but I cannot help you with 5mins charts on that except to say if you have indicators telling you to enter a trade and then price action does not follow your plan then you have to get out and seek a reentry at a later stage (or reverse your bias if appropriate).  I would always prefer to get stopped out a few times for a small loss and catch the big one I was seeking than hold too far into the red.  Of course it all depends on order size and the size of the move you are seeking vs the stop out size and number of attempts.  Losses are part of trading, as many of the top traders over the years will attest to, you have to learn how to lose before you can learn how to win, seems counter intuitive but that is also synonymous with trading, in my opinion.

Due to the nature of my method and the timeframe I trade in I can't really advise you on 5min chart day trading.  I can only discuss the longer term trend situation and suggest that you want to be careful trading against that trend.  With respect to the FTSE, and most stock indices, my assessment is bullish in general but with a lot of whipsaw potential while the markets remain in trading ranges.  Only the US large caps seem intent on making fresh ATHs, which is not a situation that is sustainable long term of course.

 

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16 minutes ago, DSchenk said:

Thanks for the analysis @Caseynotes

Should've avoided the 'market open whipsaw' clearly :D

Not too sure yet about that Stochastic indicator. Why not just use an RSI instead? Seems to look similar to me, but RSI looks simpler with only one line

yes, good point, both are very similar (rsi and stoch) and both are good at picking up divergence which shows a lack of enthusiasm to keep pushing price on. So really just a matter of preference but don't use both as they are trying to tell the same story and discrepancies will confuse the issue. I prefer stoch because of the more pronounced wave rhythm, you can use the 2 line cross or remove one line and use the break out of obos (over bought/over sold). RSI I like the bounces off 50.

Edited by Caseynotes
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11 minutes ago, DSchenk said:

Not got anything out of the market today either.

Gonna look for new strategies, different assets, different timeframes, ...

Any suggestions welcome.

Also probably back to Demo for a while.

yes, keep away from ftse and gbpusd until brexit is sorted, yesterday was deal done, then last night no deal, then this morning deal done at 2am news released about half an hour ago, that's why it's all over the place.

look at these dax and ftse HA M5 charts.

image.thumb.png.e84f4c0fc72dcb49f85a038ced528e3d.png

 

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41 minutes ago, Caseynotes said:

yes, keep away from ftse and gbpusd until brexit is sorted

Really?  I would follow the charts ... everyone (including Reuters, the IC trader) was saying the pound can't possibly keep going higher, then it will go higher because old shorts were being unwound, and now it can't possibly go higher, meanwhile it keeps going higher and higher ... follow the charts, ditch the preconceived notions about what the market 'should' be doing, right?

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4 minutes ago, dmedin said:

Really?  I would follow the charts ... everyone (including Reuters, the IC trader) was saying the pound can't possibly keep going higher, then it will go higher because old shorts were being unwound, and now it can't possibly go higher, meanwhile it keeps going higher and higher ... follow the charts, ditch the preconceived notions about what the market 'should' be doing, right?

the problem is the constant stream of contradictory news, it's like a drawn out central bank chair presser with price reversing at the end of every sentence. so you get a chart with lots of spikes and candles with long tails both directions, that's hard to keep up with and takes a lot of concentration as there is no confidence in the longer term direction.

image.thumb.png.c46724e71ab8682f6b2e96dc23946d42.png

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