Newb Setup QA

[Dexxy 10]

Hello everyone

there are just so many indicators. Its quite overwhelming! I just opened an account with etradepro. What do you think of my setup:

1minute/5day chart

Using Fibonacci fan and RSI

 

Are there any suggestions? Should i use a 5minute chart instead?

Thanks

[brownsfan019 17]

1) Post charts. This link shows you how. Use SnagIt to take screenshots and easily annotate them.

 

2) Post your ENTIRE trade process, not just the entry. Any idea can be an entry system, it's how you EXIT that makes or breaks it.

[waveslider 10]

Those are both powerful tools.

A good trader can make money with crappy tools.

A bad trader can lose money with good tools.

Brown's right, there has to be a plan for every situation.

[Dexxy 10]

Thank you for the reply guys.

Im a bit confused tho. What do you mean its the EXIT that makes or breaks it? Shouldn't the entry be the most important? Especially for a newb since im trying to build my confidence? Im sure im misunderstanding your meaning, but if you can break it down for me.

Anyway. I just wonder what do most traders have as a setup in terms of:

timeline (ie 1min,2min, 5min etc.), candlestick vs lines vs bars, and techincal, how much do they value the direction of the market.

Thank You again

[brownsfan019 17]

dexxy,

Just read the forums here and elitetrader to get a feel for what it's like to trade. You are asking a very loaded question, even though you may not realize it.

 

Exits are just as important, if not more, than entries. You'll see that sooner or later.

[sdoma 10]

Thank you for the reply guys.

Im a bit confused tho. What do you mean its the EXIT that makes or breaks it? Shouldn't the entry be the most important?

 

Neither is technically more important than the other, but people tend to have more trouble with their exits than they do with entries. When I was a new trader I found it easy to pull the trigger to get in, but once I was in I was fearful of profits evaporating and got out early. Over time this really impacts your results. Practice helped me to overcome that, but practice can be expensive.

[Dexxy 10]

sdoma,

I think you made my point as well as yours. Im sure you've all paid your dues. Well, im paying my dues now. My entries are either too early or just wrong all together. Thats why im looking for a change. I do understand the concepts of my indicators and they make sense as i back test. But I would LOVE to have the same problem you have or had (exiting too early). Atleast youre in the black.

And thank you for your input.

[brownsfan019 17]

dexxy - get some charts posted like I suggested above if you want any feeback on what you are doing. Other than that, not much more anyone can suggest other than read the forums and see what you can find.

[swansjr 10]

I agree with what has been said. The exit is so very important to the trade. To be successfully you must define your entry and exits. I say "exits" because it may be possible, probably very likely, you will have several conditions that will take you out of a trade. One entry, several exits. I probably spend more time developing exits than entries.

[Dexxy 10]

ok... i hope i attached my chart properly:

but this is my set up. my concept it to buy at the yellow of the fan (ex. 6:30am pst) and sell when it gets to the top of the fan, the green line, which is resistance from previous day highs.

I use line closed

and the rsi

5 minute chart 5 days

5min ema and 10min ema

I try to wait for the rsi to hit the 30. But ive been burned a few times with this. Especially when it tanks down even more. Ive also get burned when the rsi stays about the 60 line all day if im trying to short. The stock just stays way too bullish sometimes and i dont know where its heading. so i just hold thinking "this thing got to drop"

thank you

[sdoma 10]

ok... i hope i attached my chart properly:

but this is my set up. my concept it to buy at the yellow of the fan (ex. 6:30am pst) and sell when it gets to the top of the fan, the green line, which is resistance from previous day highs.

 

Questions:

 

By "buy it at the yellow of the fan" do you mean you buy when price dips to the yellow line from above, or do you buy when it breaks the yellow of the fan from below?

[Dexxy 10]

buy it when dips to the yellow

[sdoma 10]

Why does that yellow line act as support?

[Dexxy 10]

well i noticed it seems to be the line the price rebounds when i put the green line on one peak to the other. I know the concept is that it should hit the dotted line. but i dont see it that much for the 5 day fan. for the intraday, yes.

[sdoma 10]

What I mean is, what is it about that yellow line that makes it repel price?

[Dexxy 10]

i dont know, this is just my crazy theory. I could be wrong all together. Its just something i noticed. But the chart is an example of my theory.

[daedalus 10]

why not sell at the 61.8 green line on tuesday, oct 7th around the 99.00 mark... I think thats more inline with what that tool is supposed to be used as.