Replies to post #34207 on ETF SWING & DAY TRADING

[farooq]

If you add 15 cents stop loss on either side it will work better.
Less whipsaw. Off course once position is profitable stops can be moved up to protect gains. JMHOP

Farooq

[Nocona]

EDIT;

Long at 38.96
Sell at 40.37
Gain +1.03%

SHOULD READ;

Long at 39.96
Sell at 40.37
Gain +1.03%

[gloe]

Here's what I thought to do to avoid some whipsaws in this situation. I only saw one potential whipsaw, right after 1 pm eastern. The 144 5 min broke back below the zero line after poking its head above it. But the 50 CCI was s till above the zero line (basically, price stayed above the 50 MA). So no short there. It was only near the end of day that I thought about going short, as both the 144 and the 50 then went below the zero line.

The 50 CCI is the bright green line on the top CCI panel. (When was the other whipsaw?) I am doing this with NQ and don't want to hold futures overnight, so tomorrow I will look for a short if the 144 CCI is still indicating that short is the way to go.

The blue line in the lower panel is the signal line (6 period) for the CCI. I am looking at that also to help avoid whipsaws. To get short I would have wanted to see the 144 break the signal line AND the 50 CCI to break the zero line. Only time will tell if this is a good method. This is only for times when the 144 won't break above the +100 while we are long (or won't even break the zero line). Otherwise, the regular rules would apply. If the 144 had gotten above the +100, then a break below would have been the signal for the short, nothwithstanding the signal line or the 50 CCI. Still need to watch this to see if it will be a good idea.