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How do you trade in a bear market

skyjack777
Jul 17 2012 at 08:03
55 postów
A new week and the bulls have it. LOl Well how about looking for up trends. I've come across an action plan that everyone will know and understand. For me it simple looks as if it works (with a little bit of research). A $10 Ebay special I might add.
Working with your 3 and 6 day exponential moving averages, when the 3 day crosses the 6 day you buy and when the 6 day crosses the 3 day you sell. When in doubt EXIT. S/L set on previous peak or low swing. Daily time frame.
On top of that run with a 20 and 50 day moving average, when 20 is over and above the 50 line it's a long term uptrend.

Saying all that and seeing it work is great. Now I need to watch it work for the week and read a lot more.
I need to use two brokers as I'm watching 8 pairs and I just happen to be COLOURBLIND!! LOL.

TheLastBear
Jul 17 2012 at 10:01
186 postów
You do know that MA's are lagging indicators, right?

James_Bond
Jul 17 2012 at 10:50
556 postów

TheLastBear posted:
You do know that MA's are lagging indicators, right?


In my opinion all indicators are lagging by definition, as they are based past prices, although that doesn't prevent you from taking advantage of such indicators. Take for example the famous 5/20 ma cross in trending markets which works very well.

skyjack777
Jul 17 2012 at 11:26
55 postów

TheLastBear posted:
You do know that MA's are lagging indicators, right?


Yes but looks like a point to start working it out for myself a little. On the laptop I'm working with the Bollinger bands, CCI, RSI and Stockkhstic and Parabolic Sar. All on the one old Acer laptop screen on a 5 minute time frame. Still would rather be on the one minute screen.

LK Wong
lkwong
Jul 18 2012 at 04:37
71 postów

skyjack777 posted:

TheLastBear posted:
You do know that MA's are lagging indicators, right?


Yes but looks like a point to start working it out for myself a little. On the laptop I'm working with the Bollinger bands, CCI, RSI and Stockkhstic and Parabolic Sar. All on the one old Acer laptop screen on a 5 minute time frame. Still would rather be on the one minute screen.


IMHO, thats quite a lot to be looking at, especially when you're trading on such a small time frame. Are you looking to have confluence for your trades, or are you looking at which one works the best for you? I'm guessing all these different indicators are giving you conflicting signals. I personally trade with only 1 indicator, but the 5/20 ma cross suggested earlier is also a gem.

-LK

TheLastBear
Jul 18 2012 at 10:32
186 postów
I agree with LK that you seem to use way too many indicators. I would recommend that you stay away from the 1M charts and don't look at anything less than 5M.

True the 5/20 cross is not a bad one and I do not suggest to ignore MA's, but not to only rely on them as an indicator.

skyjack777
Jul 18 2012 at 12:55
55 postów

lkwong posted:

skyjack777 posted:

TheLastBear posted:
You do know that MA's are lagging indicators, right?


Yes but looks like a point to start working it out for myself a little. On the laptop I'm working with the Bollinger bands, CCI, RSI and Stockkhstic and Parabolic Sar. All on the one old Acer laptop screen on a 5 minute time frame. Still would rather be on the one minute screen.


IMHO, thats quite a lot to be looking at, especially when you're trading on such a small time frame. Are you looking to have confluence for your trades, or are you looking at which one works the best for you? I'm guessing all these different indicators are giving you conflicting signals. I personally trade with only 1 indicator, but the 5/20 ma cross suggested earlier is also a gem.


-LK

The 3 and 6 run on one Broker platform and the 20 50 on another, all run on a Daily time frame. I1m colourblind so all on te one screen would be too much. I look for the 3 and 6 cross over points to help indicate possible change. The 20 50 chart simply is there for highlighting long term trends.
On the laptop I run in the 5 minute time frame. Here with the Bollinger bands ect, I am watching the turn in trade from down to up at the lower Bollinger Band and acting on the second up candle. Stop loss is set at under the lowest candle and away I go. In a good uptrend it works well, just need to understand the sell instead of the close buy action at the turn down in the trend. I see what it happening, just need to understand it. When it gets to the bottom of it`s run you close the buy or second sell? I`ll get there. Yes getting away from the one minute window is a must. At the moment I am looking at the two different ways suggested to start to understand the diiffence and what will work for me. So right now with 6 small trades active 5 are in the black with 4 out of 6 sell types. Still lost but feel like I have gone forward a little.

skyjack777
Jul 18 2012 at 13:08
55 postów
Yes all too much but it`s two different types of plan run on 3 sites between 5 minute time frame for the Bollinger Bands. The 3 and 6 MA`s run on one site in a Daily window while the 20 50 MA run on another site again in a Daily window. Yes I need to stay away from the one minute windows. The 20 50 MA just give me a strong indication of the markets trend while the 3 6 MAs give indications towards buy and sell. It` s simply a way for me to look at the market in a way that I can understand and make some sense.
Trading with the 3 and 6 MAs has given me 4 out of 6 trades currently active and trading in the sell type mode and in the black going up.
The site with the Bollinger Bands is doing fine, I had seen this before and have a better understanding about this small point.
The auto robot is still working while the manual one shows a message expired?
Don`t forget it`s only a few weeks from driving trucks before I had a go at the keyboard, still 12 weeks away from a real account.

skyjack777
Jul 18 2012 at 13:10
55 postów
Thanks again for all your comments, I am taking them all in and trying to understand what you are all showing me. Thanks.

James_Bond
Jul 19 2012 at 10:22
556 postów

TheLastBear posted:
True the 5/20 cross is not a bad one and I do not suggest to ignore MA's, but not to only rely on them as an indicator.


This cross is actually a great trading system for trending markets.

James_Bond
Jul 19 2012 at 10:24
556 postów

skyjack777 posted:
Still would rather be on the one minute screen.


Are you a scalper? If not, than I don't see any reason to go to such a low timeframe. Always remember to look at the big picture, ie higher timeframes to make sure it corresponds to your trading plan so that you won't find yourself on the wrong side of the trend.

skyjack777
Jul 19 2012 at 13:05
55 postów
I think I truely love the action at the one minute time frame so yes I think I'm a scalper at heart but with NO KNOWLEDGE. The higher time frames seem to be the way to go. The 20 50 MAs are good reference points for me as a beginner, they are simply enough and straight to the point 20 above 50 and it's an uptrend.

TheLastBear
Jul 20 2012 at 08:58
186 postów
As long as your system works for its all good :)

James_Bond
Jul 23 2012 at 14:08
556 postów

skyjack777 posted:
I think I truely love the action at the one minute time frame so yes I think I'm a scalper at heart but with NO KNOWLEDGE. The higher time frames seem to be the way to go. The 20 50 MAs are good reference points for me as a beginner, they are simply enough and straight to the point 20 above 50 and it's an uptrend.


Yes, it's defintely more exciting to watch a 1 minute graph than 4 hours 😄, however isn't it more time consuming? Does your system work on higher timeframes also? If so, why not make some more longer term trades? I find the higher timeframes (30 minutes up to 4 hours) more rewarding than the lower ones.

skyjack777
Aug 11 2012 at 06:24
55 postów
Last week I was trying a few trades set up on the daily charts. I did better there than on the 1 minute time frame and of course did not go near the computer all day. The week just gone I did 73 trades (36 trades on and off) shared between IBFX and FxPro, the result was MINUS $87.00. One trade is still live for the new week. That's in 7 days with a few days off.
This week with the Forex Turbo Scalper I'll follow it's lead on one site while doing daily charts on the other site.

The loss with the robots (someone mentioned the possibility) were trading in a period where the market was not too active.
The next 7 days trading will be interesting, only trading when the markets have a lot of activity.

AliForexTalks
Oct 30 2021 at 12:25
94 postów
10 Ways to Profit in a Bear Market:

Find good stocks to buy. In a bear market, the stocks of both good and bad companies tend to go down.
Hunt for dividends.
Unearth gems with bond ratings.
Rotate your sectors.
Go short on bad stocks.
Carefully use margin.
Buy a call option.
Write a covered call option.

Akasuki
Nov 06 2021 at 11:04
500 postów
You can't learn it by reading comments here but you can get idea what you need to do to trade in bear market. Whether market is bear or bull, you need to have enough knowledge and skills.

SteveHanks
Nov 06 2021 at 17:26
536 postów
Akasuki posted:
You can't learn it by reading comments here but you can get idea what you need to do to trade in bear market. Whether market is bear or bull, you need to have enough knowledge and skills.

You are right.

Treeny
Nov 06 2021 at 20:06
211 postów
Jalath
Nov 09 2021 at 15:09
24 postów
I try to reflect the actions from bull market to bear market. Of course, it doesn't always work, however I try to do it and sometimes I'm succeed in this task. Actually, there is nothing difficult to reflect actions, the main difficulty is that bear market isn't constant. It can be for one day or one week, after it, thre will be a strong impulse up and you should be ready for it. Everything because the market goes up everytime. If you look at the graphics for the last 10-20 years, you will see that there is a strong bull trend on them. So, you should be prepared for sharp reversal of a bear market. Nevertheless, it's possible to trade on it in cae you have a proper strategy for bear market.

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