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Indicators 2

Indicators 2

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Published by Mark Soberman

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Published by: Mark Soberman on Mar 23, 2012
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How to Trade Without Indicators Webinar
Transcript Part 2 of 4
This webinar transcript is brought to you by NetPicks, day trading systems and strategiesdeveloper since 1996. For more free day trading articles, analysis, videos, webinars, andmore be sure to visit http://netpicks.com/trading-tips.  If you enjoyed reading about this webinar, be sure to get on our mailing list and sign upfor future webinars, as well as view all past webinar recordings athttp://www.netpicks.com/learning-center/training-webinars/  
So what we’re looking for we want some clean moves, right? We want some distance in
the --
 between the lines. We wanted to be fluid, right? We don’t want this choppy, slop
mess and there were so many pairs you can look at, right? So if the euro-U.S. dollar oneday is a mess, check out something else, right? Look at the lines you actually move this
up so we could see it better and probably can’t read that because I can barely read it.
it says, “Example of the spread but just keep it in context.” Okay. Keep it in context to a
higher time frame to the MACD etcetera.But look at this nice spread apart, right? Same thing here, you see same thing here. Look at the price, right? Loo
k back and forth, you can see what’s going on there and this is
how I personally learned how to start looking more at price. I love that this -- okay, well,
that’s happening here but, hmm, what’s it telling? I would just think things like that and
the way I look at this, this would help confirm what I was learning, right? It will --
it’sthere. It’s right in front of you. There’s no
I’m taking something that’s objective,
right. Objective crosses and I managed to make it into something a bit more subjective
from what I saw because, you know, we’re looking at indicators. Indicators do one thingreally well and that’s lag. It doesn’t matter what you’re looking at, they lag, right?
 I want to find out, well, through lagging, how can I get in before th
at? You see what I’m
saying? So when it starts to lag, where can I get in before that? A bigger picture
direction is how we’re going to use it. If we’re going to look at our direction in a bigger 
picture, this is your U.S. dollar 240-minute chart, long only on lower time frames. So
you’re dropping, dropping nice, right? Now, is that being subjective? No. If I look at
the price, lots -- it is kind of subjective, right? When I say dropping nice, the word nice issubjective. If I just drop down here to my indicator on my MACD, look at that. And that
confirms what I just said, right? It confirms that it’s dropping nicely.
 Now, we’re going to get these retracements in here. Now this is where you, as a trader,can say, “Okay. Well, wait a second. M
y higher time frame, I got to -- my stochasticshas turned up. My MACD is still down --
what am I’m going to do?” I can’t tell youwhat to do. I can’t. You’re going to have to look at the scale, “Okay. Well, yeah, butlook where it’s turned down. It’s turning down on places that’s, you know, they’re stillnice red candles, right? They’re not candles sucking this little one here.” But overall, myMACD is down and then I spread apart. My MACD is not like it’s going to cross
anytime soon. It’s sloping down. So I’m looking for one thing, I’m looking to short onlower time frames.” The biggest problem that a lot of traders have is they want to do
both. They want to go short. They want to go long. They want to go short. They wantto go long with no
idea of why except because it looks good. And this is what’s different
when I trade a system, I have different things in mind.
For example, I don’t care if a setup is happening,, you know, to go along into the high
today. You know, for me, high today is going to be usually London session, right,because I trade the U.S. session. Generally, I have to say that the London session but I
won’t go long. It doesn’t matter to me if it’s a, you know, 50 pip winner, it doesn’tmatter to me. That’s my rules because I have learned through my own thing that’s whenI’m not comfortable doing that. Shorting
I mean going long to the high. What I’drather do is fade it if there’s a setup there, that’s what I’d rather do. I feel say, well,you’re picking the top you’re a
you’re a contributing trader. And I say, “Yeah, good. Iam. Thank you.” There’s no harm in being that, you know, Paul Tudor Jones, that’s whathe does. It’s good enough for him to looking for reversals. It’s definitely good enough
for me.
So I’m going to take a couple of seconds here. We covered quickly multiple time frames,
objectively determined trend and trend health and aggressive/conservative, right? The
aggressive was just looking at the stochastics and if that’s turned over on a hi
gher time
frame, hey, I’m going to short. That’s aggressive. Conservative is waiting until the
MACD is turned over, right? We know our settings now to objectively determine thetrend and trend health -- 8, 17, and 9 for the MACD; 8, 3 and 3 the stochastics. These arealso time frames. Look up for your four times frames up. A general rule of thumb lock is daily transfer of four hour, four hour transfer and hourly, hourly trend or 30-minutetrend for something lower. Going below 30 minutes, especially in the FX market mustsomething I would personally do but people do it. So is there anything questions. Say,well, do you see any questions there or Brian or anybody?
Okay. All right, I’m seeing some (inaudible) Island. I can see a few other questions
I’d like to answer them. Conservative is someone asked. When I mean conservative, Imean there’s aggressive trading and then there’s being conservative in the trading. The
MACD, for example, will confirm a -- for example, a down trend slower than the
stochastics crossover. An 8, 3, 3 stochastic cross which is the downside and you’redeciding is short, that’s more aggressive than waiting for a confirmation
-- I hate thatword confirmation, but on the MACD. Did that make any sense?
I don’t trade divergence. I don’t trade it and I tell you why. It’s once again it’d be
--bottom line, I trade --
I trade price. I don’t trade price action per se. I don’t trade like,
you know, and the -- you know, price action has a different --
it’s just different t
han what
I trade. Trade people trade, you know, some sort of patterns. They trade, I guess that’s
called wedges etcetera --
I don’t trade that. I don’t trade those kinds of things. I don’ttrade divergence. and you can use this for divergence if that’s
something you want to doand then you can prove to yourself that you --
it doesn’t make sense to me so I don’t use
it. If it did make sense, I --
I’m sure
-- so yeah, the indicators are the 8, 3 and 3stochastics and the MACD is 8, 17 and 9, okay?Okay. I can finally get some click connected and start late. Yeah, we started late andmaybe questions at the end since you start late. Yeah, it was pretty quick to go through
this PDF. No, but I believe it’s being recorded so we’re all good there. To use
the samesettings for the lower time frames, yes. There is no changing the settings because youdrop down to a five-
minute chart. I don’t
I’m not the only one that’s going to tell you
this. You know, if I have to change my MACD to a lower time frame, how do I know
what settings to use, right? Do I test that as well? No, if it’s going to work on a higher time frame, there’s no reason why it’s not going to work in lower time frames and that’s
when we get into indicator trading. This is where everything gets so crazy and you willhear it, you know.
I’m going to use a five
-period EMA, five-
 period weighted moving average. I’m going to
use --
where does it end? You know, where does it end? I’m going to use a 14, 3 and 3
stochastics on the four-hour chart and will use the 5, 3, 3 on a five-minute chart. To me,
it’s like, “Well, where do you end? You know what I mean?” These have been provenout. For me, anyway, you have proof for yourself. But for me, it’s proven now, right?It’s an indicator on
my chart, this web emergency.Yeah, hey, you know what? Yeah, price, yeah, of course MACD lags price. I said that
all indicators like price. If it didn’t, it’d be great but they do. And you
-- when you use it
for direction, you’re looking for confirmation of direction. Not everybo
dy can look at a
chart and say, “Okay. It’s turned here and now the trend is down,” because when do youknow it’s down, right? When do you know it’s down? What objective way have youchosen to say, “Okay, the trend is now down? It’s now turned. It’s now turned.” This is
what this is all about. Where has it turned, right? Where has it turned?
And like I said, you know, if you don’t have to agree with me, if you don’t have to usethis, it doesn’t matter. It really doesn’t because we’re all going to
find our own way, butmost people out there are just wondering around from strategy to strategy, to indicator to
indicator, and tell to sit down and get their stuff together. And say, “Hey. You knowwhat, I’m going to stick with this and then work through that,” it doesn’t happen. Youknow, I go to Forex stocks and sometimes you look at the news releases, right? If you’re
sitting there and somebody will pop up there like, you know, the feed or something or isthat guy tells you what the --
I don’t know
the popular thread is right now, people are
 jumping from strategy to strategy, you know, every week. But definitely, you don’t need
you may not need it to tell you which way direction is but some people do and that’s just the way it is. Yeah, it’s too much money and money quarterbacking. I don’t know
what that means, stochs 8, 3 and 3.Oh, yeah, sorry. My name is Shane. If you ever see these videos, please be kind to shareit now. There you go. Sorry about that. If you go to the, like I said, NetPicks.com toTrading Tips site, you can --
you’re good. You’re good to go, okay?

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