Replies to post #49424 on ETF SWING & DAY TRADING

[Little Chico]

jonr,

This happened to me also, too many times for me to think about! I have been setting stops too tightly, lately.

If we trade with the 30" chart, we will be right, more than wrong, most of the time. However, there can be a small countertrend on the 5" chart, working against us, that we can choose to ignore, as our position "takes the heat" for a few ticks, or we can attempt a more precise entry by taking the trade based on the 5" chart, when we know the 30" chart is on our side.

The best placement of stops is based on the 5" chart, above, or below the last turn and the top or bottom of the candle that marked the turn on the 5" chart.

As far as the moderator position goes, what would it entail?


Chico

[sammy1024]

jonr,
do u get iwm data ok now? iwm didn't have a 3/8 cross today like qqqqs i think.

[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