youngin

You say if I'm focusing on the lines instead of price action to get rid of them completely, but I'm using the lines (in this context, the Daily S/D lines) as a means of illustrating and referring to the Daily trend (LOLR/Buying Pressure/Selling Pressure). If that's not following price action please correct me. What I'm trying to ask is if only taking Hourly trades in the direction of the Daily LOLR (as illustrated by the Daily S/D lines) is a prudent measure. My thinking is the better course of action is to follow the higher timeframe trend, since more traders are likely looking at it. You're asking for some sort of rule, and whatever rules you follow should be the result of your experience, or at least your testing. Without a chart, all I can provide is gurubabble.

Are daily channels worth noting to indicate overbought/oversold conditions when trading the 60m? Or should one only note the weekly? I'm struggling to understand if I should use the channels to determine LOLR (and trade only in that direction) or use Daily S/D lines with swing highs and lows as potential LOLR "flip" points. I suppose it would depend on the timeframe. Since October at least, the daily channels haven't lasted long enough to provide OB or OS conditions. Unless you're trying to enter the absolute bottom or top, look for the HL or LH. Remember that if you're not ranging, you're trending, in which case the SLA takes precedence. Don't complicate it with a lot of lines and channels. When the stride is broken, start paying attention. If it's not broken, leave it alone. So are you saying not to worry about Daily S/D lines and just follow price wherever it leads on the 60m using 60m S/D lines? I was trying to filter trades based off the Daily lines and swing highs/lows. If you're focusing on lines rather than price movement, I suggest getting rid of them entirely.

Do you know where to find Weekly charts of the NQ pre-2009? Or happen to have any screenshots of the pertinent Weekly channels before then? No, but you can get NDX data dating back to '99 at bigcharts.com.

I may or may not have been fishing for a confidence boost from the teacher

Has daytrading or longer term (like 60m) trading made the bulk of your wealth? No idea. Not the answer I was expecting from someone as experienced as you. For 60m trading, is a steady profit percentage (from quarter to quarter) of 85-90% good? Yes, that would be good though unlikely. Just saw I made a typo. I meant 75-90% *** After backtesting my 60m strategy, the phrase "The big money is made in size, not points" keeps ringing in my head. Am I correct in remembering you're the one who said it? It's difficult to make a living trading one contract.

What are your thoughts/ personal experiences with psychological round numbers? Obviously one has to wait to see if these round numbers provide the anticipated S/R. Apparently Livermore liked to use these, and I have noticed the NQ often respects the 00 levels as seen on the Hourly chart. So what does the modern Wyckoff mastah have to say? I really don't think about it much.

When you talk about higher intervals involving higher classes of traders, how do you know? Is it because the 'big boys' have so much size to move that they are forced to use Hourly intervals and greater? By no means am I calling into question your intelligence with this question, just curious. That's what I've read. And it's logical. And it helps account for movements at larger interval highs and lows.

If I'm not mistaken, you'd only need to check it about once an hour. Possibly more so if you're near an entry/exit point. Having remote desktop set up to my phone makes it a breeze, as I can be anywhere doing just about anything and still be able to trade. timokrates- I don't see shutting down as a problem for me, though that probably varies on a person by person basis. I'm young, so I've always got my phone in my hand checking it anyhow. Plus I'm not married. And I don't have kids. You're also taking the market hour by hour, which is a lot less hectic than minute by minute. As for this 'football' match you speak of... that's what we like to call round here "pussyfootin around". Ain't no football 'cept 'Merican football! {sarcasm}

I've been watching the 60m lately and BOY does my life seem a lot less stressful than when I'm daytrading. At this point, I'm pretty sure I'm going to make the conversion. Considering that the Daily and Weekly channels provide an Overbought/ Oversold indication, would looking for LH's in OB territory and HL's in OS territory be a sound starting point for hypotheses?

Do you day trade year round? Not much after the beginning of Spring. Follow up Q: Due to the warmer weather and wanting to go out and play in the yard or some other reason? Trading is not my life. If there is something more interesting to do, I'd rather do the other thing. What instruments do you trade on a longer interval? Just the NQ. Have you ever considered starting a fund? Why or why not? No. Too much like a job. Why do you only trade the NQ (on longer intervals)? In order to choose a trading instrument, one must first decide what he wants from it, then characterize various markets until he finds one that meets his needs.

DB- Why do you think there isn't more material on AMT? Do you think hedge funders are using this type of methodology or are they using something completely different? I've read that Paul Tudor Jones is a big proponent of "reading the tape" and that for trading macro, it is absolutely essential. He also says that reading price action is a lost art and that much of the younger generation struggles with it because it requires them to just close their eyes and trust the price action instead of trying to come up with fifty different reasons why this or that stock should go up or down. Is Wyckoffian logic the 'secret' to these guys making billions? Wyckoff was close, particularly with regard to turning points and the search for "equilibrium". But he never really put it together. Steidlmayer was the first as far as I know to assemble all of this into a logical construct in Market Logic. Unfortunately, like so many of the type, he got all tangled up in software (Market Profile) and made it next to impossible to implement any of it without spending tons of time and money, not only on software but books. Lots of books. As to professional traders, you may be interested in this. Which leads me into my next question... At what point have you run into fill issues day trading and trading off the 60m in the NQ? At some point size has to become an issue, I'm just curious to know this point. I'd like to know how large I can scale this strategy. Nail it all down with one contract. Your worries about being filled with multiple contracts are way down the road. Note, however, that getting filled is a function of the entry order. If you use a stop limit entry, you will very likely not get filled. On the other hand, if you use a market order, no problem, though your entry may not be anywhere near where you wanted it to be. As I've done repeatedly before, I'd like to thank you once again for opening my eyes to how markets truly operate. youngin

What effect, if any, do you think Apple leaving for the Dow will have on the Naz? No idea. It wouldn't have any effect on my trading plan. You've talked about scaling out, but do you have any thoughts on pyramiding? The most logical places to pyramid are the retracements. Thanks Db.

DB- Is there a thread where you have talked more about trading the 60m chart? The SLA/AMT pdf uses 60m bars.

Looks like traders waiting on New Home Sales at 10:00... HS doesn't mean much anymore. I'm surprised they'd wait for it.

DB- Don't I remember you saying that you should know in the first 10-15 mins if it's going to be a trend day? I also remember you saying you can recognize when it's not going to be worth trading and go mow the lawn or clean out the garage instead? Care to elaborate? I'd have to see the post. As for the not worth trading, I don't like trading ranges. If we're in a range and the pace and activity are slow, I'll quit rather than get sucked into bad trades. I've noticed that when the Daily is in a downward sloping channel, the trending days seem to increase. Anyone else noticed this?