How to trade using TRO's Dynamic S/R indicator

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jstockman
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Workspace and Chart times

Postby jstockman » Thu Oct 26, 2006 2:13 am

watzdorf wrote:Here is how I use s/r:

if price hits s/r twice -> go short/long at s/r
if price hits s/r only once, I take the low/high of that bar to go short/long.
in other words: if price moves above the high of the bar that created the support (s) ->short and vica versa.

I use mental stop 1 point above/below s/r

I don't use midpoint

hth

alex


watzdorf

Could you please explain a little more.

What time frame are you entering end exiting the trade. Do you use other time frames for setup.

Do you do forex or only stocks.

Jimmyj

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watzdorf
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Postby watzdorf » Thu Oct 26, 2006 6:37 am

As I said above, I use it on stocks and futures (1 and 5 min charts) I didn't use it on forex yet, but I am quite convinced that it will work there too.
alex

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Screen Shots

Postby jstockman » Mon Oct 30, 2006 3:33 pm

scotty_dog wrote:
watzdorf wrote:As I said above, I use it on stocks and futures (1 and 5 min charts) I didn't use it on forex yet, but I am quite convinced that it will work there too.
alex


Hey watzdorf,

It would be great if you could upload a screenshot or two to illustrate the set-up and your thinking.

Cheers,
scotty_dog


watzdorf,

I am new to trading, but am wanting to learn. When you post your screen shots can you put a red or blue arrow on the bar you trade. That would help.


Thankyou

Jimmyj

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watzdorf
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Postby watzdorf » Mon Oct 30, 2006 8:07 pm

Ok, here is a chart from today. It shows long and short entries
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snapshot-19.gif
snapshot-19.gif (60.92 KiB) Viewed 3378 times

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Postby traderwep » Thu Nov 02, 2006 7:44 pm

hi watzdorf

why do you not have a sell on your chart a little after 1600 when the price starts a new row of red markers. looks like price is around 80.25 at those red markers. often i see on futures the will be rising red markers so if sell at the first have to endure drawdown as they go against you. same with shorts. is that how you would play it sell the first new red and buy the first new blue--at close of actual bar--in effect a reversal system? i am trading generally a 3min YM.

i have not been able to figure out a profitable way to use this indicator so i am quite interested in your experience.

thanks

wayne

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Postby watzdorf » Thu Nov 02, 2006 8:16 pm

traderwep,
at that time you would be around the middle of price action, hence you wait for next signal and that was a support. -> go long at support / short at resistance

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Postby traderwep » Fri Nov 03, 2006 1:52 am

it was short at resistance which is what i am not understanding. you apparently decided not to go short at THAT resistance.

i understand long at support and short at resistance as a concept but i am trying to apply it to the chart.

what exactly is a signal, the first of a series of red blue squares?

how long do you hold it--til it hits an opposite color square?

what happens in more trending days? does one have serious losses ?

thanks for any explanations you can provide to help me understand how to use this in realtime.

wayne

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Postby watzdorf » Fri Nov 03, 2006 10:09 am

I did not circle all the possible entries.

<<how long do you hold it--til it hits an opposite color square?>>

this is for me the most difficult part :) that I can't put in a rule. Sometimes only a few secomds other times 15 - 30 min. This depends on the price action you are watching.

<<what happens in more trending days? does one have serious losses ?>>
No big losses, since you always put a stop 1 point below support or 1 point above resistance.

In addition to this I always watch the trend and don't hesitate to go long/short many times when I see that the trend is established. (Scaling in)
Take the dynamic as a basic way to analyse the chart and see potential entries. I had a hard time to figure it out and I tell you I've lost a big amount of money until I was able to use it properly. You will get a feel for it after a while. Of course I don't follow the signals blindly. When I see they don't make sense, then I stay out.
Basics: Find out if the market is trending or in sideways action. If sideways I stay out and wait or choose another stock.

hth
alex

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Postby rrobin » Sat Nov 04, 2006 7:51 pm

This is a copy of a TRO post on TS.

Read the trend page and you will see how he created and learned to use the SR.

96 Pages LOL

https://www.tradestation.com/Discussion ... 776&Page=1

MINI GRIDIRON II LESSON




The _SMAA_DYNAMIC_SR, formally PUSH HILO, is effective across all time frames... if anything, the longer the better. I'm just a scalper at heart.

90%? Look at the charts...

First, you must determine the overall trend direction . How? LOL... You can use the TREND and COMPASS indicators on 15/60 minute and daily intervals. Notice on my chart the ema(5) is plotted (dark cyan line). NEVER TRADE AGAINST THE EMA(5) DIRECTION... NEVER!!

Next, you only trade in THAT DIRECTION! GOOG was trending DOWN on Friday. There was money to be made off the long bounces but why take unnecessary risks? Greed? So GOOG was a short when the ema(5) was heading south.

So if you sold at the RED dots and covered at the BLUE, you should not have missed. I was calling the play by play on GOOG in the afternoon and every 10 - 20 minutes there was a short worth at least $2 a share. I just waited for a fib retrace and/or dynamic resistance hit.

If you jumped the gun and shorted BEFORE GOOG retraced up to a pivot, your p/l showed some red (temporarily). If you waited for the RED DOTS to plot horizontally instead of stair stepping, your account would be a lot richer!!

Once again, if you look at your past trades using the Dynamic SHOWMEs and GRIDIRON_II indicator, you will see why you made money and why you lost money on the trades.

Does this make it any clearer?

Do you understand?

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Postby traderwep » Sat Nov 04, 2006 9:47 pm

hi the above i very helpful and informative, much more info than sell at red and buy at blue :-) thanks

wayne

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