Are trend lines pivot points and discipline enough to gain an edge trading indices?

Question

Are trend lines pivot points and discipline enough to gain an edge trading indices?

Answer 1

yes.  Support and resistance plays are much more common and more profitable than over-time trendlines.  You can do a bit of damage with just these, but trades won't come up very often.

I'll give you a quick thing to watch today.  Both the Dow and SPX appear to be breaking their uptrend line (more like a wedge, actually) since the previous bottom a few weeks ago.  Depending on their closes in about two hours, it is a high probability play that they fall at least halfway down, then watch closely to see if it breaks that area of support and heads toward that bottom level.  DON'T take this trade, but watch it.

Intraday trends are more profitable, if that's what you are looking at with pivots.  It will take a lot of time and experience to know how to play them well.

IMO, I think indices are easier to trade than stocks, because it is more predictable as it is on such a macro level, and also news risk is not as high.

Go buy a copy of "How Charts Can Help you in the Stock Market" and research some indicators.  I'm guessing you picked up the "edge" from a trading book.  Keep doing that as well.

Discipline is good.  Keep it up, be cautious, trade paper.  Be receptive to the market at all time.

Answer 2

i think they are. I have read a good blog on these techniques and suggest ways to use them in our trading culture. they are good enough to get price trend and base our trades on these.

http://forexmoneymaker.blog.com/

Also there is a free pivot calculator which allows you to calculate the points, support/resistance points and predict the price movement.

http://www.finexo.com/pivotCalculator.

I hope this will make your task less stressful and efficient.

Regards

Answer 3

I know a lot of traders who make a lot of money trading using only trendlines, no indicators or oscillators. They are disciplined, they have a quiet mindset when trading.

The reason they are successful at what they do is because they have been doing this for some time now. They understand when to trade, and when not to trade.

It is not the trading method that will give you an edge in trading the markets. The holy grail that many traders seek is not about which trading method works best. To be a good trader, work on attaining the qualities that make a trader great.

Remember, the goal of a good trader is not to make money, but to trade well (Alexander Elder).

Good luck!

http://jsforex.blogspot.com

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