Trade Like a Dealer: (And Avoid Death by a Thousand Stops)

[garyh]

Originally Posted by Tekunda

GaryH please translate: .....Pct R for the 4Hr chart That is too cryptic for me.

I use three indicators, Schaff Trend Cycle, MACD and Williams Percent R indicators on a 4 hour chart. I look for exhaustion and divergence and reverse the trend direction. Is that understandable?

Gary

[ash71]

Gary,

You have a great system. That is almost exactly what I do, and it works well enough to continue using it! The Williams %R is a time tested indicator that is well worth checking out for any traders who look to fade the end of a trend. I have found it even works well at spotting divergence and reversal opportunities on the 5, 30 and 1 hour charts as well.

In place of the Schaff TC I like to use a Bollinger/SAR combo on a candlestick chart.

This thread is excellent! Great posts everone, thanks.

[Baruch]

Originally Posted by garyh

I use three indicators, Schaff Trend Cycle, MACD and Williams Percent R indicators on a 4 hour chart. I look for exhaustion and divergence and reverse the trend direction. Is that understandable?

Gary

Only on a 4 hour chart? You must be trading very long-term?

[garyh]

Originally Posted by Baruch

Only on a 4 hour chart? You must be trading very long-term?

Depends on your definition of long and short. I usually only hold trades between 1 and 4 days. It's called "swing" trading (1-10 days), which is the time frame between day trading and position trading (often days/weeks/months). If your a scalper, then it is a long time. If you're a position trader, it's a short time. I think it's just right for the 4HR chart and Daily charts.

Gary

[fxmktlgc]

Just bringing this thread back up. Are people still following these methods with success? I don't think the Ebay book/system is for sale any more...at least I haven't seen anything like it. Here's another article by Boris S. (he wrote the article mentioned in the initial post) that shows a simple way you may be able to trade like this:

http://www.investopedia.com/articles...ACDdiverge.asp

Originally Posted by garyh

Depends on your definition of long and short. I usually only hold trades between 1 and 4 days. It's called "swing" trading (1-10 days), which is the time frame between day trading and position trading (often days/weeks/months). If your a scalper, then it is a long time. If you're a position trader, it's a short time. I think it's just right for the 4HR chart and Daily charts.

Gary

[SoundFX]

That's a briliant article. Couldn't agree more with the man.

-S

[piprunner1992]

Man are you kidding? Think about it like this, if you have $10,000 in a micro account and trade .10 lots, you can average down multiple times before you take a significant loss. Obviously if you follow this strategy you need to have a good enough system so that you aren't constantly having to average down multiple times. Your system should be good enough so that you're not trying to dig yourself out of the hole every trade.

That being said, this strategy works. My partner and I use the 10 points 3 system (with some modifications) that is based largely on this "Trade Like a Dealer" philosophy. After just 3 months, we're up over 40%. Try getting that at your local bank. You don't need 100k account. Start with a micro account and work your way up.