This is for Pam...
This is mainly for short term /swing trades , but the entries could also be used for long term entries for a better success rate.
Below is for a long entry (will put together an example for a short trade
1. The 3 days before the arrow label show both the slow stochastic readings above 80. When for 3 days both readings are over 80, it is termed "embedded"
2. On July 6 (arrow) , the price opened close to a trend line of 3 day averages of lows - close enough for me as the price action gained away from the opening.
3. If the price took out the prior days high then dropped tot he 3 day average of lows, then that would not trigger a buy, as that price movement would be bearish.
4. If the price is over the upper bollinger band, then the trade would not be entered (never enter a long trade when the price is over the upper bollinger band)
4. The first target would be the upper bollinger band or the nearest major SMA trend line (18, 50, 100, or 200), as any of these could serve as resistance. If trading short term options, then take out at least 50% of position. Would sell any remaining options/positions if either of the slow stochastics drop below 79. Obviously, trades would be less optimal if entering where the upper bollinger band or a major trend line is close bye.
This is mainly for short term /swing trades , but the entries could also be used for long term entries for a better success rate.
Below is for a long entry (will put together an example for a short trade
1. The 3 days before the arrow label show both the slow stochastic readings above 80. When for 3 days both readings are over 80, it is termed "embedded"
2. On July 6 (arrow) , the price opened close to a trend line of 3 day averages of lows - close enough for me as the price action gained away from the opening.
3. If the price took out the prior days high then dropped tot he 3 day average of lows, then that would not trigger a buy, as that price movement would be bearish.
4. If the price is over the upper bollinger band, then the trade would not be entered (never enter a long trade when the price is over the upper bollinger band)
4. The first target would be the upper bollinger band or the nearest major SMA trend line (18, 50, 100, or 200), as any of these could serve as resistance. If trading short term options, then take out at least 50% of position. Would sell any remaining options/positions if either of the slow stochastics drop below 79. Obviously, trades would be less optimal if entering where the upper bollinger band or a major trend line is close bye.