by Olga » Wed Dec 12, 2007 7:40 pm
I have Vantage Point and look at the Short Term Predictive relative to the Medium Term Predictive.
First, youre using Vantage Point to day trade, but they'll tell you that Vantage Point is for position trading. Yes, theyre predicted high/low is correct granted, big moves may be outside the range, but how frequently do you have a big one day move?, however it only tells you the possible high/low, now what the trading pattern for the day will be.
One thing I could propose is this: Use the Short Term/Medium Term Predictive averages the pink and light blue lines, I have mine set on the bottom part of the map to get an idea of when prices may be changing direction. as well, when you switch from the ten day or five day average to the predicted high/low, youll notice that the short/medium predictive lines will be different that from the 10/5 day map. What I do is when the short predictive light blue line crosses the medium pink line on both the 5/10 day and predicted high/low map, is when I get an indication markets will turn and its correct .
When that happens, since you day trade, use your technicals on whatever time frame map youre using to take trade only in the direction of the crossover. as an example, say youre watching the S&,P 500, the market is trending up and you notice that on the five or ten day map that the short term predictive crossed below the medium term, and when you switch to the predicted high/low map that the short hasn't crossed below the medium predictive, but is about to, wait till the short crosses below the medium predictive on the predicted high/low map that's short crossed below medium on both 5/10 and predicted high/low map . When that happens, use your technicals to time short entries, dont go long. In other words, say youre using a five minute map. If the market is trending up, and youre technicals give you a signal for a short, then take the short trade.
When the signals show the five minute map starting to turn back up again, close your short, but don't go long, only enter again when you get a sell signal.
Trade in the direction of the bigger trend. you may want to get less whipsaws and will be trading in the direction of the bigger trend. When the short crosses above the medium predictive on both the 5/10 and predicted high/low map, the only take long trades.
Hope that assists.