This thread is used to give intraday trading signals on the following markets:
1. Dow Jones Industrial Average (INDU)
2. NASDAQ Non-Financial 100 (NDX)
3. S&P 500 (SPX)
We will try to find the medium term direction (1 - 5 days) of each index by locating the important support and resistance, then match them with the chart patterns to find the potential trading range. By merging the behaviour of the corresponding index options and the intraday index trading signals, we hope to find some safe trading opportunities with huge reward in the shortest time frame.
Indexpulse 5 day chart for Short Term trades INDU
Indexpulse 5 day chart for Short Term trades SPX
Usual Trading Signals (with INDU as the reference index)
1. DMI+ cross under ADX = potential HOD, DMI- cross under ADX = potential LOD. The confirmation comes from the gap between DMI+ and DMI- (at least 20), the further apart, the better. This signal is not valid when INDU has about 200 points movement or when you get it before 10:00am. This method works best on the 5 min chart.
Buying Calls at LOD and Support and Puts at HOD and Resistance will likely give us a profit. Remember to use any volatility the first hour of trading to capture good entries and exits.
2. Indices like to Close at or near the High of Day (HOD) or Low of Day (LOD)
3. INDU hits the 320SMA on the 5 min chart.
4. INDU hits the 100SMA on the 15 min chart.
5. INDU hits the Medium Term support and resistance from a longer time frame chart, for instance, the 5 days 15 min chart or 10 days 60 min chart.
6. 15 min MACD signal: fast line cross over or cross under the slow line
7. Maximum-Pain Theory Options Analysis, http://www.iqauto.com/cgi-bin/pain.pl ,works well the week before options expiry.
8. When there is a directional divergence between TRAN and INDU, follow TRAN #msg-1008063
9. Trading Above the SMAs with the SMAs as Support is when you want to be Long or holding Calls. Trading Below the SMAs with the SMAs as Resistance is when you want to be Short or holding Puts. Exit the Calls at HOD and Resistance signals. Exit the Puts at LOD and Support signals. It is not necessary to immediately flip into the opposite trade but Safer to wait until a Market reversal is confirmed.
10.The 5 day 20 and 50SMAs crossing Positive and the markets trading Above them is a Bullish sign, the 5 day 20 and 50SMAs crossing Negative and Below them is a Bearish sign.
11. A Long Calls signal is when the 100/320SMA changes from Resistance to Support and the market is trading Above the SMA and Holding Support. A Short Puts signal is when the 100/320SMA changes from Support to Resistance and the market is trading Below the SMA and Holding Resistance.
12. and many more signals that we discuss on the thread daily.
Trading Tips and Tools:
SPX Current Trading Channels-tks RCKS!
QQQ Current Trading Channels -tks RCKS!
TZA Short reference chart
TNX Bond Yield chart-Inverse to Bonds but in line with Markets
Forex Economic Calendar
Bull Market Cycle/ Fib Fan chart
Read the 24hr Futures Quotes here and Plan your Trade wisely
CME 10-minute GLOBEX Flash Quotes (HTML)
Quote.com Futures list - Click on Indices link
TREND1 RUT Chart-very useful
DAX Chart with trading channels-tks RCKS!
FTSE Chart with channels - tks RCKS!
SPX Swing trade chart MACD/RSI -tks Footquarters!
Larry Williams website - I Really Trade LW University
Commitment of Traders Charts
Useful Futures Link
Options site for OEX, SPX, DIA, DJX, NDX
Seasonality Switching Rules #msg-1381329
Plan Philosophy #msg-471956 #msg-539934
Trade Strategies #msg-538376
Diary of a Loss #msg-545791
Need a Break? #board-30 #board-959
Meanwhile, please feel free to post what you think can be played with these intraday trading signals. This is vital to this thread, please contribute your thoughts. We are all here to learn. I use this thread to document my own observations, and try to draw conclusions from them. You can do the same thing too!
The DJX and NDX options are relatively cheap, and they can obtain nice percentage movement easily. While SPX options are relatively expensive, the volatility can lead to huge percentage movement, hence higher risk and reward. For simplicity, we also assume that you are not allowed to short options, though that will be changed when we gain more experience.
"The Markets offer support and resistance. This Board offers support and assistance"
"If you can Successfully Follow the Plan then Success will Follow You!"