AI
Duplicating My Results...
zelareka,
For Swing Trades (Long and Short), it's not difficult to duplicate my results. That's because the rules for entering and exiting a Swing Trade leave little room for guess work...A Swing Trade is defined as a trip from Gathering Support to Gathering Resistance or vice versa.
For Day Trades (Long and Short), the rules for exiting are not as clear cut as are those for exiting a Swing Trade.
One approach that I use relies on the "20-Period Moving Average" and the "50-Period Moving Average" on a 5-Minute Chart.
For example, if a Day Trade Long is ventured at an area of Gathering Support and the price then rises to find Resistance at one of the two Moving Averages, it is often a good time to close the trade.
Tuesday's price action in the QQQQ provided 4 separate opportunities to venture a Day Trade Long at an area of Gathering Support between $37.30 and $37.39 (represented by the area in light blue on the 5-Minute Chart below).
The first Day Trade Long was entered when the QQQQ fell to within Tuesday's area of Gathering Support by printing a low of $37.31. Support was found. The QQQQ rose 49 cents to a subsequent high of $37.80.
$37.80 placed the QQQQ at Resistance at its declining "50-Period Moving Average" where, based also on the MACD Indicator, the trade was closed. (One little know trading rule states that a stock rarely rises beyond its "50-Period Moving Average" when its MACD is below the "0" Line. At the time that the QQQQ was bumping up against Resistance at its "50-Period Moving Average", its MACD was far from the "0" Line.)
zelareka,
For Swing Trades (Long and Short), it's not difficult to duplicate my results. That's because the rules for entering and exiting a Swing Trade leave little room for guess work...A Swing Trade is defined as a trip from Gathering Support to Gathering Resistance or vice versa.
For Day Trades (Long and Short), the rules for exiting are not as clear cut as are those for exiting a Swing Trade.
One approach that I use relies on the "20-Period Moving Average" and the "50-Period Moving Average" on a 5-Minute Chart.
For example, if a Day Trade Long is ventured at an area of Gathering Support and the price then rises to find Resistance at one of the two Moving Averages, it is often a good time to close the trade.
Tuesday's price action in the QQQQ provided 4 separate opportunities to venture a Day Trade Long at an area of Gathering Support between $37.30 and $37.39 (represented by the area in light blue on the 5-Minute Chart below).
The first Day Trade Long was entered when the QQQQ fell to within Tuesday's area of Gathering Support by printing a low of $37.31. Support was found. The QQQQ rose 49 cents to a subsequent high of $37.80.
$37.80 placed the QQQQ at Resistance at its declining "50-Period Moving Average" where, based also on the MACD Indicator, the trade was closed. (One little know trading rule states that a stock rarely rises beyond its "50-Period Moving Average" when its MACD is below the "0" Line. At the time that the QQQQ was bumping up against Resistance at its "50-Period Moving Average", its MACD was far from the "0" Line.)
Buy at Support
Sell at Resistance
*
*
*
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
