Posted by elementsix on 28th of May 2020 at 03:15 pm
Sharing some successful trades I've done on MSFT lately. This
"system" has worked well for me and my trading needs, but please do
your own research/testing. Hope this is helpful!
I have primarily been using this to
add to a positionon the way up while occasionally
also hedging on pullbacks using Puts and trading up using Calls.
I'm trading a 2hr chart and using a 30min for further confirmation.
On the 2hr, you see 4 distinct basic patterns over the last 2
months; Upchannel, Wedge, Wedge, Sideways Channel. MSFT has been
very good about adhering to these patterns, until broken. When they
break, I sit tight and wait for the next pattern to form.
I'm focused on the
10 STO for entries, confirmed by RSI
near/below 20. I also confirm with the 60 STO down and looking to
swing back up. I then check the 30 min chart for confirmation as
the signals are even more pronounced at that timeframe. Since MSFT
60 STO has been above 80 relentlessly, the dips make for obvious
signal confirmations. Monitoring the location within the pattern in
also critical.
My MSFT BUY Signals (2hr): 1. 10 STO below 20, moving back up
2. 60 STO below 80, (lower the better), moving back up
3. RSI below 20
4. MACD potential crossover in sight (this is lagging
so is only a loose, additional confirmation)
And keep an eye on symmetry and the moving average ribbons..
Yesterday's trade was like fireworks going off... all 4 signals
screaming BUY. 60 STO hit 30, the lowest in like 2 months. RSI in
the red and MACD far below 0. In this case I bought early and
aggressively after the waterfall selloff in the AM.
There have also been some decent short signals using the 10 STO
falling below 80 with RSI below 80 and falling and MACD
crossover/pinch. I haven't been as focused on those. If you are
primarily trading I would look into that more so you
know when to exit your trade
thx for taking the time to post! I suggest re posting in evening
or better yet maybe on Friday night as it won't then get buried by
intra day market comments and more folks will see it and have time
to digest it. Again you spent the time and work putting that
together and sharing it, I want more people to see your work vs
getting buried here, suggest reposting on Friday evening as good
read for folks over weekend
yep and realize that's more of a strategy that's pretty simple
using Stochastic. and some other things. You don't know the
long statistical history that's a short time.
again I've given you a lot of tools i.e. puzzel pieces to use to
try and put together your own methodology, here's a short list
- 60 Stochastic above 50% look to buy abc type pullbacks, same
for when MACD crosses above zero. When 60 stochastic is
trending above 80%, one can buy shallow pullbacks with tight
stops.
The MA ribbon pinches squeezes provide low risk long and short
trades, with the best one's being the first pinch/squeeze after a
60 Stochastic crosses above 50% or MACD above zero
Symmetry is an awesome tool for looking for areas of support or
resistance, or to confirm when a trend is over and when to look to
buy the a higher low bounce or short a lower high bounce.
The 50% area for 60 Stochastic and 34 Stochastic are low risk
buy opportunities
Places where the MACD line comes and pinches nearly touches it's
average (MACD Kiss) is a low risk trade
doji candlesticks extended far from their 9 EMA's esp if you see
some CCI divergence can provide low risk trades
CCI extreme spikes to >-250/300 esp if you see some pos div
after that are low risk bounce trades
the list goes on and on, there's a lot of different puzzel
pieces to use to put together something that works for you
Posted by elementsix on 28th of May 2020 at 05:41 pm
Good Point Matt, a strategy more than a system.
I have tried applying to a few other stocks (incl FB ) and it
was not nearly as clean. Worked for
MSFTat this moment in timeand I'll take it only for
that, while it lasts. Certainly haven't backtested it...
Sharing some successful trades I've
Posted by elementsix on 28th of May 2020 at 03:15 pm
Sharing some successful trades I've done on MSFT lately. This "system" has worked well for me and my trading needs, but please do your own research/testing. Hope this is helpful!
I have primarily been using this to add to a positionon the way up while occasionally also hedging on pullbacks using Puts and trading up using Calls. I'm trading a 2hr chart and using a 30min for further confirmation. On the 2hr, you see 4 distinct basic patterns over the last 2 months; Upchannel, Wedge, Wedge, Sideways Channel. MSFT has been very good about adhering to these patterns, until broken. When they break, I sit tight and wait for the next pattern to form.
I'm focused on the 10 STO for entries, confirmed by RSI near/below 20. I also confirm with the 60 STO down and looking to swing back up. I then check the 30 min chart for confirmation as the signals are even more pronounced at that timeframe. Since MSFT 60 STO has been above 80 relentlessly, the dips make for obvious signal confirmations. Monitoring the location within the pattern in also critical.
My MSFT BUY Signals (2hr):
1. 10 STO below 20, moving back up
2. 60 STO below 80, (lower the better), moving back up
3. RSI below 20
4. MACD potential crossover in sight (this is lagging so is only a loose, additional confirmation)
And keep an eye on symmetry and the moving average ribbons..
Yesterday's trade was like fireworks going off... all 4 signals screaming BUY. 60 STO hit 30, the lowest in like 2 months. RSI in the red and MACD far below 0. In this case I bought early and aggressively after the waterfall selloff in the AM.
There have also been some decent short signals using the 10 STO falling below 80 with RSI below 80 and falling and MACD crossover/pinch. I haven't been as focused on those. If you are primarily trading I would look into that more so you know when to exit your trade
good stuff, thanks. I use
Posted by roger on 28th of May 2020 at 08:07 pm
good stuff, thanks. I use the same strategy with different settings.
thx for taking the time
Posted by matt on 28th of May 2020 at 03:29 pm
thx for taking the time to post! I suggest re posting in evening or better yet maybe on Friday night as it won't then get buried by intra day market comments and more folks will see it and have time to digest it. Again you spent the time and work putting that together and sharing it, I want more people to see your work vs getting buried here, suggest reposting on Friday evening as good read for folks over weekend
Good thinking Matt. I'll repost
Posted by elementsix on 28th of May 2020 at 04:01 pm
Good thinking Matt. I'll repost this weekend.
thank you, very interesting, i
Posted by bigdaddie01 on 28th of May 2020 at 04:41 pm
thank you, very interesting, i can tell you've devoted a lot of time to develop this system, appreciate you sharing.
yep and realize that's more
Posted by matt on 28th of May 2020 at 05:13 pm
yep and realize that's more of a strategy that's pretty simple using Stochastic. and some other things. You don't know the long statistical history that's a short time.
again I've given you a lot of tools i.e. puzzel pieces to use to try and put together your own methodology, here's a short list
- 60 Stochastic above 50% look to buy abc type pullbacks, same for when MACD crosses above zero. When 60 stochastic is trending above 80%, one can buy shallow pullbacks with tight stops.
The MA ribbon pinches squeezes provide low risk long and short trades, with the best one's being the first pinch/squeeze after a 60 Stochastic crosses above 50% or MACD above zero
Symmetry is an awesome tool for looking for areas of support or resistance, or to confirm when a trend is over and when to look to buy the a higher low bounce or short a lower high bounce.
The 50% area for 60 Stochastic and 34 Stochastic are low risk buy opportunities
Places where the MACD line comes and pinches nearly touches it's average (MACD Kiss) is a low risk trade
doji candlesticks extended far from their 9 EMA's esp if you see some CCI divergence can provide low risk trades
CCI extreme spikes to >-250/300 esp if you see some pos div after that are low risk bounce trades
the list goes on and on, there's a lot of different puzzel pieces to use to put together something that works for you
Good Point Matt, a strategy
Posted by elementsix on 28th of May 2020 at 05:41 pm
Good Point Matt, a strategy more than a system.
I have tried applying to a few other stocks (incl FB ) and it was not nearly as clean. Worked for MSFT at this moment in timeand I'll take it only for that, while it lasts. Certainly haven't backtested it...
Thanks for the great cheat sheet!
Thanks for sharing
Posted by steve on 28th of May 2020 at 03:19 pm
Thanks for sharing