Just bought another book
Posted by Darcy
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Re: Just bought another book March 20, 2013 06:39PM |
Yep. I use the standard 14. All 4 charts must line up before I trade.
What I mean by line up is a HRFP or a FP on at least the 55 and if a FP one of those MUST be the MACD.
On the moving average chart you need a spreading apart of the moving averages. What I mean is you must be able to see a space between the moving average lines...moving averages will spread something like an "E" and will be moving up or down and you must have at least the 5 crossing the 20 moving average on those moving average charts and they must concur with Gary's charts.
The ADX line (mine is dark gray - thickness 2) must be turning up for there to be a good trend. If it is flat you can squeeze a little out of a trade but I do not bother with those because they make me sweat! . **Remember the ADX line will turn up even if you are looking for a PUT if the trend is strong.**
On the moving average charts the money flow index must be turning up or down depending on how the trade is moving.
If I do not have all of this I do not trade...period!
I have my 4 charts side by side on my laptop and on my two screens in my office. They are Gary's 55, a 10 moving average chart with money flow (half the size of Gary's) under the 10 I have the 21 moving average chart same size as the 10, and then I have Gary's 21 chart. I do glance at the daily to see if there's trend, gap, resistance or support.
It wasn't until about this time last year that I really "GOT IT!" My first trade
(laughing at myself every time I tell this!!!!)........
I bought my option real cheap (real money too)...the Ask was .05 and the Bid was zero! It took about 20 minutes for it to set in that I wasn't going to make any money! I still laugh at myself over that...I mean I laugh really hard! It was obvious that I needed to study options!
What I mean by line up is a HRFP or a FP on at least the 55 and if a FP one of those MUST be the MACD.
On the moving average chart you need a spreading apart of the moving averages. What I mean is you must be able to see a space between the moving average lines...moving averages will spread something like an "E" and will be moving up or down and you must have at least the 5 crossing the 20 moving average on those moving average charts and they must concur with Gary's charts.
The ADX line (mine is dark gray - thickness 2) must be turning up for there to be a good trend. If it is flat you can squeeze a little out of a trade but I do not bother with those because they make me sweat! . **Remember the ADX line will turn up even if you are looking for a PUT if the trend is strong.**
On the moving average charts the money flow index must be turning up or down depending on how the trade is moving.
If I do not have all of this I do not trade...period!
I have my 4 charts side by side on my laptop and on my two screens in my office. They are Gary's 55, a 10 moving average chart with money flow (half the size of Gary's) under the 10 I have the 21 moving average chart same size as the 10, and then I have Gary's 21 chart. I do glance at the daily to see if there's trend, gap, resistance or support.
It wasn't until about this time last year that I really "GOT IT!" My first trade
(laughing at myself every time I tell this!!!!)........
I bought my option real cheap (real money too)...the Ask was .05 and the Bid was zero! It took about 20 minutes for it to set in that I wasn't going to make any money! I still laugh at myself over that...I mean I laugh really hard! It was obvious that I needed to study options!
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