Wednesday, June 4, 2008

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

No comments: