Friday, May 13, 2011

I don’t use Volume…I prefer to use SPEED in my day trading



-      Speed and how we use it

-      I wanted to know what was happening RIGHT NOW, not 5 minutes from now, or 5 minutes ago…..RIGHT NOW.

-    Speed at the Open

• Speed at the Close
• Speed of the Time & Sales Window
• Speed of the Patterns Developing on your chart (how quickly does the pattern form?)
• Speed of each Pattern Triggering according to rules (when does it trigger?)
• Speed of the Follow-thru after the pattern triggers, filling your profit targets
• Speed of the Continuation of the move, rather than the failure
• Speed of the Exhaustion of the move
• Speed of the Reversal of the move
• And the process starts all over again….

There are lots of times when speed is important, but let’s focus on the big three:

• Speed of Tape
• Speed of Set-up
• Speed of Follow-thru

-          PHOD and PLOD

o    We saw an excellent example of how we used the speed to make REAL MONEY TODAY
       
-          Breaker / wave combination trade
Posted by Joseph James

3 comments:

  1. Wow!..That was VERY Good!

    ReplyDelete

  2. Joseph
    What is the indicator on the chart of 10 seconds to see speed....¿¿is it the volume of the chart??
    Abrazo
    Pablo de Uruguay

    ReplyDelete

  3. Hi Abrazo!

    The indicator you are thinking of is our Pace of Tape Indicator.

    You can search this blog for that keyword, or use this link for more info

    http://www.sidewaysmarkets.com/2010/07/pace-of-tape-technical-indicator-for.html

    and this one...

    http://www.sidewaysmarkets.com/2011/02/pace-of-tape-indicator-measures-speed.html

    I find that new day traders benefit tremendously from knowing HOW and WHEN to use SPEED in their trading.

    Hope it helps!

    ReplyDelete

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