Posted by frtaylor on 19th of Jun 2012 at 08:31 am
Here's an interesting swing long trade I learned about that
might materialize today or tomorrow, etc. It catches a change
in direction on the daily chart. This trade would be on SPY
or SSO. Again, chart is the daily, trade is a swing long.
8 ema crosses ABOVE 21 ema
price should have exceeded at least one previous swing high
(we've exceeded high of 6/11)
price should be at/near upper bollinger band or keltner channel
(showing strength)
buy on a pullback into the zone between the 8 and 21 ema (buy
intraday)
do not buythe
pullback if price falls below the 21 ema (intraday or EOD)
initial stop loss is just below the 21 ema or 4% of the stock
price, whichever is greater
sell 1/2 when price again reaches the upper bollinger band or
keltner channel
swing the rest, trail stop using stop rule
Would love to hear comments from BPT or others familiar w/
this trade.
Posted by frtaylor on 21st of Jun 2012 at 12:50 pm
This 8/21 ema trade is on right now. Nice thing is that if
it crosses under the 21 EOD, you can exit with very little loss.
Another way to look at it is that if the 9 ema holds today,
you can go long. Either way, use the listed trade stops.
Steve or Matt, would be great to get your input if you have any
views on this trade.
when looking at MA crosses, it helps a lot to employ a whipsaw
filter, my horizontal line confirmation works great to cut out
about 50% of whipsaws i.e. quick crosses that reverse back.
here's a few examples on a daily SPX chart that I've shown in
the past
Posted by frtaylor on 21st of Jun 2012 at 01:27 pm
On the orig post, the 19th, I didn't give a chart, only verbally
mentioned that it was for a daily chart.
The trade kind of has it's own filter in that you don't take the
trade on the day of the 8/21 cross. Rather, you wait for
price to drop back into the zone between the 8 and 21 to go long.
If price crosses the 21, you don't take the trade. I'll sell
it if EOD price is below the 21.
Posted by frtaylor on 21st of Jun 2012 at 01:09 pm
SPY just now to cross over the downtrend line shown on this 5
min chart. Could be a good trigger, esp. if we get one more
slight pullback on lighter vol.
No pos divergence on the MACD, though.
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8/21 ema cross swing trade (SPY or SSO)
Posted by frtaylor on 19th of Jun 2012 at 08:31 am
Here's an interesting swing long trade I learned about that might materialize today or tomorrow, etc. It catches a change in direction on the daily chart. This trade would be on SPY or SSO. Again, chart is the daily, trade is a swing long.
Would love to hear comments from BPT or others familiar w/ this trade.
8/21 ema cross swing trade is on
Posted by frtaylor on 21st of Jun 2012 at 12:50 pm
This 8/21 ema trade is on right now. Nice thing is that if it crosses under the 21 EOD, you can exit with very little loss. Another way to look at it is that if the 9 ema holds today, you can go long. Either way, use the listed trade stops.
Steve or Matt, would be great to get your input if you have any views on this trade.
when looking at MA crosses,
Posted by matt on 21st of Jun 2012 at 01:11 pm
when looking at MA crosses, it helps a lot to employ a whipsaw filter, my horizontal line confirmation works great to cut out about 50% of whipsaws i.e. quick crosses that reverse back.
here's a few examples on a daily SPX chart that I've shown in the past
Sure - here. I did
Posted by frtaylor on 21st of Jun 2012 at 01:15 pm
Sure - here. I did mention it was a daily chart trade when I first posted the trade parameters.
you didn't at first, you
Posted by matt on 21st of Jun 2012 at 01:21 pm
you didn't at first, you must have modified your post because after I refreshed your chart appeared.
the problem with the blog is that when posts are edited, no one sees it unless the blog is manually refreshed, the auto refresh will not catch it
I printed the original post
Posted by wowten on 21st of Jun 2012 at 01:30 pm
I printed the original post for reference.
It states that it references the daily chart twice in the first paragraph.
On the orig post, the
Posted by frtaylor on 21st of Jun 2012 at 01:27 pm
On the orig post, the 19th, I didn't give a chart, only verbally mentioned that it was for a daily chart.
The trade kind of has it's own filter in that you don't take the trade on the day of the 8/21 cross. Rather, you wait for price to drop back into the zone between the 8 and 21 to go long. If price crosses the 21, you don't take the trade. I'll sell it if EOD price is below the 21.
ok guys we get the
Posted by steve on 21st of Jun 2012 at 01:31 pm
ok guys we get the picture. let's not bury productive posts with back and forth banter
SPY long trigger?
Posted by frtaylor on 21st of Jun 2012 at 01:09 pm
SPY just now to cross over the downtrend line shown on this 5 min chart. Could be a good trigger, esp. if we get one more slight pullback on lighter vol.
No pos divergence on the MACD, though.