Momentum Day Trading
Currently testing "Momentum Day Trading":
• Buy or Sell stocks moving in one direction.
Strategy:
• Use EMA and MACD indicators to determine direction of overall trend.
Ideal Buy:
• Buy when the 9 EMA crosses above the 21, 100, and 200
• Hold as long as the 9 continues to have separation above the 21
• Prepare to Sell when the 9 crosses below the 21
• Sell when the MACD crosses below the Signal and Zero line.
Ideal Sell:
• SELL when the 9 EMA crosses below the 21, 100, and 200
• Hold as long as the 9 continues to have separation below the 21
• Prepare to BUY when the 9 crosses above the 21
• BUY STOP when the MACD crosses above the Signal and Zero line.
Also: • Use the 1min interval to enter the position at best price
• Use the 5min interval to find support for reversals
• Higher intervals are less useful for this strategy
Legend:
EMA 9 purple, 21 blue, 100 red, 200 yellow MACD w/ crossover.
The 1 minute chart:
The 5 minute chart:
You can see the price bounces off the yellow 200 EMA.
• Buy or Sell stocks moving in one direction.
Strategy:
• Use EMA and MACD indicators to determine direction of overall trend.
Ideal Buy:
• Buy when the 9 EMA crosses above the 21, 100, and 200
• Hold as long as the 9 continues to have separation above the 21
• Prepare to Sell when the 9 crosses below the 21
• Sell when the MACD crosses below the Signal and Zero line.
Ideal Sell:
• SELL when the 9 EMA crosses below the 21, 100, and 200
• Hold as long as the 9 continues to have separation below the 21
• Prepare to BUY when the 9 crosses above the 21
• BUY STOP when the MACD crosses above the Signal and Zero line.
Also: • Use the 1min interval to enter the position at best price
• Use the 5min interval to find support for reversals
• Higher intervals are less useful for this strategy
Legend:
EMA 9 purple, 21 blue, 100 red, 200 yellow MACD w/ crossover.
The 1 minute chart:
You can see the price bounces off the yellow 200 EMA.
Comments
Post a Comment