Tuesday, April 21, 2009 10:00:13 PM
When I trade, I use a 1 minute $SPX chart, that looks like this ... Nominal entry to trade is when the bars penetrate from outside the channel to inside the channel. If SPX(60) RSI(2) and (5) 'agree with the trade , I take it. If either is poking at the 50 line, I coin toss / look else where. If both are extreme (80+, 20-) and agree, I'll position larger.
I also use a 5 minute $SPX chart, with two channel (Price, Keltner) overlays that I look to for confirmation. That has an RSI(14), MACD(12,26,9) on it as well. RSI(14)>50, long is safer.
Nominal exit is: at breakeven plus for a stop loss; bounce of any of the RSI lines at 50 (wrong way); other side of the trade 'buy' signal (BGU / BGZ switch).
And, other combinations of those ...
That help?
I also use a 5 minute $SPX chart, with two channel (Price, Keltner) overlays that I look to for confirmation. That has an RSI(14), MACD(12,26,9) on it as well. RSI(14)>50, long is safer.
Nominal exit is: at breakeven plus for a stop loss; bounce of any of the RSI lines at 50 (wrong way); other side of the trade 'buy' signal (BGU / BGZ switch).
And, other combinations of those ...
That help?
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