Tips and Tricks - Part II

If you feel like you may be this type of trader, you might want to use a procedure I developed to help define a trader’s profile.

You see, many traders – myself included – tend to be more visually oriented. Others, especially those whose language is learned by memorizing characters, such as Chinese and Japanese, rather than sounds like phonics, are more “numbers” oriented. At a glance they can see the picture by reading the numbers.

For that reason I created a form to assist traders who are more “numbers” oriented. Right down is an example. It is the high, low close of each 15 minute bar of the chart below. Once again, there is a blank form you can copy in the appendix.

Of course, this isn’t easy to do. You must write down the numbers every fifteen minutes. But, if done properly it can pay off. Take a look at the column labeled STO. Remember the numbers I told you on the end of the post Constructing Our Charts  that sit on the bottom of the left side? 

These are the figures for the hidden line of the “fast” stochastics. Although they are not always consistent as they move up and down, they are almost  always accurate at calling the turns. Even more important they can often tip us off to an extreme  movement. 

At 5:30 prices peaked at 1.4171.6. STO peaked at 86. An hour and a half later prices peaked again at exactly the same price, 1.4171.6. They never went higher. But look at STO. It could only reach 63, the same level as the previous low at 6:30. 

Want to know how far prices fell? Exactly 46 pips, down to 1.4125.6!

 I’ll finish up this post by giving you a secret tip I use so I don’t have to watch my screen all the time. OandA doesn’t have an alert (sound signal) you can just type in when you want it to beep. It only sounds when a buy or sell order is touched. 

So, I use a buy or sell order at the price I want it to beep. But, I only use 100 units so it makes little difference if I win or lose on such a small trade. And of course I only place a buy order if I’m buying and a sell order if I’m selling.