Millionaire TradersQ: Are there any indicators that are sentimental favorites or at
this point you almost look at a clean chart? You don’t even really
have indicators on it?
A: I really am in favor of moving averages. What I use is something
calledMoveTrend, which is very similar to a moving average. I
will always have those on my charts. Everything else is optional.
[Authors’ note:MoveTrend is a proprietary indicator that tries to
create a more timely moving average.]
Q: Do you use that because it removes the noise and gives you
a cleaner view of the directionality of the move?
A: Exactly, and that’s why it’s also important to have a 15-minute
chart up looking back several days and see what the trend is. It’s
very easy to get focused in on a three-minute chart or a one-minute
chart or a five-minute chart and miss the big picture. The bigger
size is trading longer timeframe charts. You don’t want to fight
those guys.
Q: To take that to the next step, if you’re starting to see selling
action on the short-term chart, but on the longer-timeframe chart
it looks like it’s really an area of support, then it’s probably a good,
high probability trade to be a buyer at that point?
A: Yes, and I think that right now that is never more evident
than looking at a daily chart on the S&P 500, we’ve been in a long
uptrend. But we’ll have two or three days in a row where it looks
like a bear market, and then the big boys move in and then it will
build up some more.
Q: One computer with nothing but charts on it, what else is in
the trading room?
A: Well I guess that one trading PC has four monitors and I play
around with different charts. But I stick to the most basic 5- and