Monday, October 12, 2009 12:59:13 PM
SPX&RUT 60 min trade system rules.
Indicators -
- 7 ema, 14 sma, and 7,5 sma.
- Aroon14 with %B overlayed.
- Slope 14 with a 7 sma.
- SPX:VIX ratio with 7,5 sma
Trade is triggered when price crosses the 7,5 sma and 2 of the indicators confirm.
Confirming indicators listed in order of importance.
1. slope crossover 7 sma.
2. SPX:VIX ratio crossover 7,5sma.
3. 7 ema crossover 14 sma.
4. Aroon crossover 0 line.
There are exceptions, such as when markets are in a tight trading range you may want to wait for all 4 indicators to confirm.
Use stops wide enough to allow for normal volatility and tighten them up when indicators become extreme overbought or oversold, settings stops can be tricky you will eventually get a feel for it. If not sure then use the 7,5 sma for your stop levels.
If a sell signal comes before a stop is hit, go with the signal!
See charts below -
For non SC subscribers if the charts do not render properly you can also see them on my public chart page. link can be found in my profile.
Indicators -
- 7 ema, 14 sma, and 7,5 sma.
- Aroon14 with %B overlayed.
- Slope 14 with a 7 sma.
- SPX:VIX ratio with 7,5 sma
Trade is triggered when price crosses the 7,5 sma and 2 of the indicators confirm.
Confirming indicators listed in order of importance.
1. slope crossover 7 sma.
2. SPX:VIX ratio crossover 7,5sma.
3. 7 ema crossover 14 sma.
4. Aroon crossover 0 line.
There are exceptions, such as when markets are in a tight trading range you may want to wait for all 4 indicators to confirm.
Use stops wide enough to allow for normal volatility and tighten them up when indicators become extreme overbought or oversold, settings stops can be tricky you will eventually get a feel for it. If not sure then use the 7,5 sma for your stop levels.
If a sell signal comes before a stop is hit, go with the signal!
See charts below -
For non SC subscribers if the charts do not render properly you can also see them on my public chart page. link can be found in my profile.
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