mrkam
05-16-2006, 11:22 AM
Brutal day yesterday, eh? But, losses were small, and better trades to come! Steve's 5/16 newsletter prompted this, in that there was a Short setup on the AB-5min, that (eventually) worked out to be a good trade, albeit awash in a bunch of bad ones in other markets along the way... Would have made a bad day into (at least) a better-than-even one...
But! What about that 'ol TRIN, or even the bigger question, confirmation for our ABC setups. I think it has been shown that trading the ABC raw (no secondary indicators, just the setup with the MTP 3-part entry requirement...) can be successful in and of itself. But we all want to fine tune a little, all in an attempt to "trade-with-the-trend", which is a good thing!! Now, on this "trade of salvation" yesterday, the TRIN fell sharply from sell to buy, from red to black, not really an "ideal" short confirmation...
This begs the question: Are we putting too much weight on the TRIN (or any other indicator for that matter....)? I know this is an old topic, but maybe we can get some good discussion and ruminations going here!
If we go with just color, it was black. Which is OK for either buy or sell. So the trade is a go. If we go with slope, strong slope to buying pressure, so trade is a no go. If we go with nothing, trade is a go.
I know, there will always be losers with any system, and any confirmation can keep you out of bad trades, in some good ones, miss some good ones, and take some bad ones.. (did I cover things there??) But with risk management, we will all live to trade another day!
Just curious as to thoughts...
Personally, I trade the setups and the TRIN slope, with no regard to color. I will take a neutral TRIN either way, but won't trade against a strong TRIN slope. But, that kept me out of the Trade-of-Salvation yesterday, so what do I know!!!
But! What about that 'ol TRIN, or even the bigger question, confirmation for our ABC setups. I think it has been shown that trading the ABC raw (no secondary indicators, just the setup with the MTP 3-part entry requirement...) can be successful in and of itself. But we all want to fine tune a little, all in an attempt to "trade-with-the-trend", which is a good thing!! Now, on this "trade of salvation" yesterday, the TRIN fell sharply from sell to buy, from red to black, not really an "ideal" short confirmation...
This begs the question: Are we putting too much weight on the TRIN (or any other indicator for that matter....)? I know this is an old topic, but maybe we can get some good discussion and ruminations going here!
If we go with just color, it was black. Which is OK for either buy or sell. So the trade is a go. If we go with slope, strong slope to buying pressure, so trade is a no go. If we go with nothing, trade is a go.
I know, there will always be losers with any system, and any confirmation can keep you out of bad trades, in some good ones, miss some good ones, and take some bad ones.. (did I cover things there??) But with risk management, we will all live to trade another day!
Just curious as to thoughts...
Personally, I trade the setups and the TRIN slope, with no regard to color. I will take a neutral TRIN either way, but won't trade against a strong TRIN slope. But, that kept me out of the Trade-of-Salvation yesterday, so what do I know!!!