LONG Entry Trend Reversal / BULL Swing

Trade Setup

LONG Entry Trend Reversal / BULL Swing Trade

YM (Mini-Sized Dow) Analysis - 06-09-2008

Mini-Sized Dow June 2008 (987 Tick Chart)

Mini-Sized Dow June 2008 (377 Tick Chart)

YM LONG and SHORT Trading Strategies

TradeStation





TRADING STRATEGIES:

Trend Reversal LONG Entry

• Down Trend, RSI Confirms Down Trend (Lower Peaks/Troughs)
• RSI BEAR Divergence or RSI H&S Pattern at Beginning of Down Trend preferred
• Identify Resistance on Price Action (Bull Close to Bull Close) and RSI (Peak to Peak)
• Consider using Andrews Pitch Fork in help determining S/R of Down Trend
• Any Down Trending Chart Pattern (Inverted H&S on Angle?)
• Price Action should be approaching known Support (Pivot/Longer Trend/200SMA)
• Look for RSI BULL Divergence to indicate imminent Retracement/Reversal
• BULL Entry after BULL Divergence and RSI Cross Above 30
• Aggressive BULL Entry on Bounce up after Triple BULL Divergence
• BULL Entry after RSI and Price Cross/Close Above Down Trend Resistance
• Aggressive BULL Entry after RSI Cross/Close Above Down Trend Resistance before Price

Trend Swing LONG Entry

• Up Trend, No Significant RSI Bear Divergence preceeding
• RSI Cross and Close Above 50 (RSI Higher Low Below 50 preceeding Preferred)
• Price Action Cross and Close Above 21 EMA

Trend Reversal SHORT Entry

Trend Swing SHORT Entry

• Down Trend, No Significant RSI Bull Divergence preceeding
• RSI Cross and Close Below 50 (RSI Lower High Above 50 preceeding Preferred)
• Price Action Cross and Close Below 21 EMA

Trade Management

• Parabolic SAR Stop Strategy