Intraday technical analysis - Trading-Lab

breakout · #1 02-06-2008, 05:07 PM

Am I correct when I say that technical analysis is less effective when used in intraday trading?

institutions accumulate/distribute big positions over several weeeks or months and often place buy/sell orders at random during the trading day. Often, I notice that when I get an intraday buy/sell signal based on technical analysis, a big order on the opposite side comes in.

am I the only one experiencing this?

daytraderB · #2 02-12-2008, 02:03 PM

I would say yes, technical analysis tends to be more effective on larger time frames. But that does not mean they are not effective on shorter time frames.

ProTrader · #3 02-15-2008, 04:23 PM

Quote:

Originally Posted by breakout

Am I correct when I say that technical analysis is less effective when used in intraday trading?

I wouldn't say that. technical analysis is equally effettive on different timeframes. Thing is you have to create specific trading rules for each time frames you are gonna use. That is, a system created with a 1-min time frame in mind won't be as effective when you apply a 5-min time frame.

you get the point?

kerahc · #4 02-15-2008, 04:41 PM

I would have to agree that the time period you use determines what is effective and what isn't. Personally I track Fibonacci levels on all my time frames so you could use that as a rough starting point. They tend to come true because enough people in the world are also tracking them and if you trade off the masses, get ahead of them it's a pretty safe trade.

Soverus Khan · #5 02-16-2008, 03:15 AM

For what it's worth, I use no indicators intra-day.

15, 5, and 1 minute chart. Volume plotted. Trade set-ups based on specific time frames are executed on the same timeframe. The 1 minute helps entry on the 5, the 5 is validated by the 15.

15 and 5 minute of the S&P and NAZ for the overall trend.

That's not to say I haven't used multiple indicators and indicator driven systems over time....but it all really came down to price action.

I do plot some horizontals on the 15 to show previous day's OHLC as well as current day's open.

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#1 02-06-2008, 05:07 PM
breakout Member Join Date: Jun 2007 Posts: 63	Intraday technical analysis Am I correct when I say that technical analysis is less effective when used in intraday trading? institutions accumulate/distribute big positions over several weeeks or months and often place buy/sell orders at random during the trading day. Often, I notice that when I get an intraday buy/sell signal based on technical analysis, a big order on the opposite side comes in. am I the only one experiencing this?

#2 02-12-2008, 02:03 PM
daytraderB Member Join Date: Jun 2007 Posts: 63	I would say yes, technical analysis tends to be more effective on larger time frames. But that does not mean they are not effective on shorter time frames.

#4 02-15-2008, 04:41 PM
kerahc Member Join Date: Jan 2008 Location: Cincinnati Posts: 46	I would have to agree that the time period you use determines what is effective and what isn't. Personally I track Fibonacci levels on all my time frames so you could use that as a rough starting point. They tend to come true because enough people in the world are also tracking them and if you trade off the masses, get ahead of them it's a pretty safe trade.

#5 02-16-2008, 03:15 AM
Soverus Khan Senior Member Join Date: Dec 2007 Posts: 306	For what it's worth, I use no indicators intra-day. 15, 5, and 1 minute chart. Volume plotted. Trade set-ups based on specific time frames are executed on the same timeframe. The 1 minute helps entry on the 5, the 5 is validated by the 15. 15 and 5 minute of the S&P and NAZ for the overall trend. That's not to say I haven't used multiple indicators and indicator driven systems over time....but it all really came down to price action. I do plot some horizontals on the 15 to show previous day's OHLC as well as current day's open.