hello my friends this video on day trading stocks is given to you by me
doctor barry burns at top dog trading and I'm going to show you a technique today that
you probably haven't seen before and it is game changing so here we go
I've been trading for 49 years and I've seen the stock market change a lot
and one of the ways that has changed most dramatically as with the advent of
various computer technologies into the training arena
so for example now everybody has direct access to the markets also Commission's
have come way down to the price of entry and exit is less high frequency trading
is come in algorithmic trading decimalisation and all this adds up to
allow people to get in and out of positions faster and make money now
the effect that that has had on trading and on chart is that charts have become
choppier and people ask me this hate doesn't seem like the markets more
chaotic and chopper than they used to be and the answer is absolutely yes
so we don't see trends as much as we used to especially when you're day
trading stocks for day trading we got to be in and out during the day
so for example and you can check up all the examples you want to know this is
just a few but this is a very common and representative
so look at this market really doesn't go anywhere this whole day this is the day
between there and there and go up does it go down now pretty much goes sideways
so the next day we come down yes we start in on down
move that's not really a trend is just a thrust to the downside
and then what happens after that we get a trending day
no after that after the first whatever power hour
the market just goes nowhere from there again pretty common pretty common
what happens the next day well again kind of the same thing we get a thrust
up that doesn't sustain to the upside so the trend doesn't sustain we won thrust
down and there's no more training to this market all dressed up for us down
and then just go sideways
no sustained trim
it's no sustained direction same thing here get a little bit of a move up
now here we get a three-way pattern which should qualify as a short-term
trend but it starts the day before so for a day trader
we have to start here and after this point there's no trend that continues
and then in the afternoon well one of my other YouTube videos talks how to take
the afternoon trade and that's the afternoon trade that we usually get a
move on after lunch
but that's not really a trend either that's just one thrust look at your
cycles for a trend to go you got to have at least three to five cycles going to
make it a sustained trend based on the definition of trento by the way if you
want my cycle indicator
I do make that available to my YouTube subscribers for free just subscribe to
youtube and send me an email also and here's my email address and i will send
you the cycle indicator we do webinars on map that pretty frequently
so anyway same thing here let's just finish up with this and show you what i
mean so here we did get a five way down trend which would qualify but it's
interrupted by the middle of the day so by the time you're starting as a day
trader
it doesn't sustain anywhere and then it tries to go to the upside we little
three wave trend but again not a long sustained trauma and then the final day
here is just sideways right so what do we do about this kid is is trend trading
dead for the trading stocks
well the answer is no there is a way around this
so first of all you can go to a shorter-term time frame actually that's
what you have to do you have to go to a shorter-term time frame
now you could try a two minute chart or even a one-minute chart it still won't
work as well as what I'm going to show you now
so the optimal way to accommodate all these changes that have occurred is to
go to tick charts in the tick in this context is a trade
so as we pull in now see here is the same chart we just looked at right and
look at the trend
see it's the exact same market we're all done has changed to tick charts and take
bars i should say and we see these trends
so what this is now these bars are lasting shorter than five minutes so
we're looking into
I'd i call it the fractal energy instead of a fractal of what you were looking at
before it's a smaller scale
it's doing that that's number one number two is that we're not using time-based
bars each one of these bars can last a different amount of time each bar last
for three hundred trades and went right through one comes through in the next
bar forms
what this does is it tends to creek smoother chart patterns
it creates a more rhythmic pattern because you're incorporating volume into
the trade pattern as well so it's not actual volume because it's really just
the trades in each tray can have a different amount of volume but you're
still taking a form of volume in the sense of how many trades are coming
through
so you see that same market that was so choppy before
now all of a sudden we can do trend trading on so let me go back and
actually i'll show you a couple different examples here I don't want to
move the screen around a lot
you're still gonna get some chopped by the way right you're still going to get
some chopped because sometimes that's just what the market is doing is being
chaotic but we're still in the same day and he got a nice seven wave trend
so basically you look for this in the morning and then lunch is going to be
choppy normally and then in the afternoon
so this is your morning trend that your midday chop and that's your afternoon
trend and that's the type of thing you'll typically find so try it out
there is no best number of tick intervals by the way I do have an
article on that in my blog if you're interested in how to choose the best
time interval for your charts
feel free to email me and i'll i'll send you that article and be happy to share
that with you for free
so that's it for this particular video so if you like this video and you're
watching on youtube please click the thumbs up icon below and leave a comment
because that really encourages me to create more free tutorials for you
also i'm giving away one of my favorite trade strategies called the rubber band
trait has an extremely high win loss ratio
very simple strategy can learn about 26 short minutes
get that video explaining three strategy absolutely free by clicking the image in
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go ahead and click on the little I
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