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I have been successfully trading the S&P, emini and big contract using the following
parameters. I will warn you though that the system I use doesn't generate trades every day,
but it does seem to generate profitable trades. Here it goes...
I establish the first hour range of high and low (the highest high, and the lowest low in the first
hour of trading) on the 5 minute chart. Then I wait for a breakout through one of those two
lines. When a breakout occurs I check the DOW and the NASDAQ to see if they are
moving TOGETHER in the direction of the breakout. (they do not have to be positive in an
upside breakout, but they do need to be moving together in the same direction.) I then check
to see if I have a buy signal in place in either MACD (set at 8 - 18 - 8 for a little faster signal)
or I use the KST indicator by Martin Pring (its on the equis web page). I will usually check
RSI also to see if it is a new upward movement or if it is maturing. If close to 70 I set a really
tight stop. If all three are in line I pull the trigger and almost always get a 4 pt move. I usually
exit based on trend breaks on the 5 minute chart. I am trying to automate the process to give
buy/sell signals in MS, but I just got the software recently and haven't quite mastered the
language of experts, etc. I can generally get 3 to 5 good signals a week, and it is netting
about a 70% win percentage if everything lines up right.
In the first hour I draw my trend lines on the daily and 30 minute charts to establish possible
resistance/support points and to get a feel for the trends in differing time frames. I usually do
not trade against any opposing trends in the 30 min, but sometimes go against the daily trend
if it looks really good.
Hope this helps.
-Bill
> ** Original Subject: RE: Daytrading S&P E-mini
> ** Original Sender: Neal Hughes <neal@xxxxxxxxxxxxx>
> ** Original Date: Fri, 28 Apr 2000 09:32:58 -0500 (CDT)
> ** Original Message follows...
>
> At 08:07 AM 4/28/00 -0500, you wrote:
> >I would appreciate any advice on which indicators work well for daytrading
> >the S&P E-mini.
> >Thanks
> >Lyle
> >
>
>
> It's really worth studying Fibonacci. But not just the basic Fibs, you
> need to combine Fib levels from different time-frames.
>
> Most importantly, combine leading and lagging indicators, and trade
> in the same direction as the trend of the higher time-frame.
>
> These work for me, trading options on the S&P cash.
>
> -Neal.
>
>
>** --------- End Original Message ----------- **
>
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