
Wednesday, January 28, 2009
Sunday, January 25, 2009
Momentum Trend Daily Swing System
ENTRY
ENTER THE TRADE WITH 1/3 OF YOUR CAPITAL FIRST, YOU BUY WHEN BLUE LINE IS BELOW RED LINE DURING AN UPTREND; OR YOU SHORT WHEN BLUE LINE IS ABOVE RED LINE DURING A DOWNTREND. AND ADD ANOTHER 1/3 IF BLUELINE IS STILL BELOW/ABOVE RED LINE ON THE NEXT DAY.
TARGET
IT IS A LITTLE TRICKY, YOU CAN USE EITHE PROFIT TARGET OR WATCH FOR POSSIBLE TREND LINE OF BLUE LINE.
STOP/EXIT
EXIT WHEN THE TREND IS BROKEN (LOWER HIGH/LOWER LOW OR HIGHER HIGH, HIGHER LOW)
Saturday, January 24, 2009
CCI Cross Based Daily Swing Trade System
There are two ways to trade on this system. The first one (indicated by blue circle) is based on Signalline (black) cross out CCI Area (Green/Red) and that cross must occur above or below 100 line. This kind of setup offers about 60% success rate and you see that quite often, The second one (indicated by gold circle) is based on lower high cross or higher low cross (CCI form a lower high or higher low first then you see a cross). This setup is very likely to play out with around 70-80% success rate, but you don't often see that.
Setting: SPY daily chart, CCI (10,2) , enter the trade at EOD, exit at the next day's close, use previous day's high/low as stop.
HMA Cross Based ES/SPY Swing Trade System with $Tick Divergence Filter
ENTRY :
LOOK FOR POSITVE/NEGATIVE DIVERGENCE ON $TICK AND HACT CHART AND USE HACT COLOR SWITCH AND HMA9 CROSS AS ENTRY.
EXIT
HMA9 CROSS OR HACT COLOR SWITCH.
STOP,
1 PT LOWER/HIGHER THAN PREVIOUS LOW OR HIGH MARKET JUST MADE
PERIMETER
TICK OHLC/4
HMA1 (HULL MOVING AVERAGE) 9, 0, CLOSE
HMA2 (9,0, open)
HACT (HEIKIN ASHI CANDLE TECH)
ES/SPY 15 MIN CHART
REMINDER,
DIVERGENCE ON TICK DOES NOT ALWAYS LEAD TO TREND REVERSAL, SO YOU MUST ENTER THE TRADE AFTER YOU SEE A BUY/SELL SIGNAL FROM HMA CROSS AND HACT. $TICK DIVERGENCE IS JUST A FILTER HERE.
click for larger picture and leave me a comment if any question
Friday, January 23, 2009
Some Basics about Daytrading
I always get questions about how to day trade, especially in current whipsaw market.
This time, I will try to give you a little start here
There are several ways you can do the day trading:
1, Technical analysis. This could be very straightforward. You have your favorite indicators then you trade on that.
2, Another popular way is to trade based on market internal, such as TICK, TRIN, Put/Call ratio, Premium, Tape.
Tick- Extreme readings of -1200 and +1200 are rare and offer fading opportunties. TRIN is based on the underlying assumption that the overall direction of stock prices and the rate of volume are leading, short-term indicators for the stock market. Premium is to trade the spread between the futures and cash. Reading the tape is one of the hardest trading skill to master. The tape is useful in timing entry and exit points. Very useful for short-term trading.
3, Market profile is a very popular trading strategy nowadays. It is a tool for organizing time and price data, graphically representing how volume builds at various prices over time. There are some basic information about it here
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1058+46499,00.html
This time, I will try to give you a little start here
There are several ways you can do the day trading:
1, Technical analysis. This could be very straightforward. You have your favorite indicators then you trade on that.
2, Another popular way is to trade based on market internal, such as TICK, TRIN, Put/Call ratio, Premium, Tape.
Tick- Extreme readings of -1200 and +1200 are rare and offer fading opportunties. TRIN is based on the underlying assumption that the overall direction of stock prices and the rate of volume are leading, short-term indicators for the stock market. Premium is to trade the spread between the futures and cash. Reading the tape is one of the hardest trading skill to master. The tape is useful in timing entry and exit points. Very useful for short-term trading.
3, Market profile is a very popular trading strategy nowadays. It is a tool for organizing time and price data, graphically representing how volume builds at various prices over time. There are some basic information about it here
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1058+46499,00.html
ES Future Daytrader
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