ETF SWING & DAY TRADING

[Little Chico]

Jonr,

At 10:30 a.m. the Slow Stochastic on the 30" NQZ8 Chart crossed over, although the 30" chart had not yet given a short signal. However, that was precisely the top, which could be seen when we switched to the 5" chart. Entering a short trade at that point would have yielded 40+ ticks, with little danger of getting stopped out. The proper place for the stop would have been at 1701, above the highest candle. So, I recommend following the 30" chart and using the slow stochastic 14,3 to determine the top, rather than a 3/8 EMA crossover, which would be too slow. Once the Slow Stochastic has crossed, switch to the 5" chart to time more precisely your entry. Then stay with the 5" chart 3/8 EMAS until they cross back again for the precise exit. At 1:35 p.m. we got a stochastic cross up on the 30" chart, and a 5" entry at approximately 2 p.m. This would have yielded another 24 ticks. Then came another short signal at 3:25 and so on...


Chico