Guide to Day Trading Strategies


H O W T O D A Y T R A D E



Download 3,52 Mb.
Pdf ko'rish
bet63/76
Sana01.04.2023
Hajmi3,52 Mb.
#924103
TuriGuide
1   ...   59   60   61   62   63   64   65   66   ...   76
Bog'liq
How To Day Trade Ross Cameron Warrior Trading

H O W T O D A Y T R A D E
97
Only Trading Extremes
Reversal setups need to be either at high of day or low of day, with at least 3-5 consecutive 
long body candles, although 5-10 is preferable. The 
À
nal candle in the string of consecutive 
candles should be a candle outside the bollinger bands. A candle outside the bollinger bands is 
a de
À
nitive indicator of an extreme move. Additionally, I look for the Relative Strength Index to 
show the stock is either above 80 (overbought) or below 20 (oversold). I require more indicators 
than a momentum trade, because reversals are dif
À
cult to time properly.
Chart showing Reversal Bar at the bottom of the downtrend.


R O S S C A M E R O N
98
The Reversal Bar
The last candle in the series will be our reversal bar. The best reversal bar will be fully outside 
the bollinger bands, and should ideally take the form of a doji, a topping or bottoming tail, or a 
hammer or inverted hammer. That candlestick becomes our trigger candle that we will use to base 
our entry and stop price. In the case of a top reversal, we will short the 
À
rst 
À
ve minute candle 
to make a new low, versus the low of the trigger candle. Our stop will be the high of the trigger 
candle. I have to adjust my size based on the level of risk between my entry and the stop price.
Chart showing 
À
 ve minute bottom bounce alignment with a daily support level.


H O W T O D A Y T R A D E
99
Alignment with the Daily Chart
Although countertrend trades can be pro
À
table without running into support or resistance on 
the daily chart, many of the best reversal setups will have con
À
rmation on the daily chart. The 
daily con
À
rmation helps justifying the reversal point, which means more traders will participate 
in the reversal trade. As we know from our lesson earlier, more volume generally means better 
resolution. The reversal point on the daily chart can be touching a critical area of support or 
resistance, or running into a moving average. The obvious daily levels will typically provide more 
support than obscure levels.
Volume
Although volume is not as important on reversals as it is on momentum trades, I still prefer to 
see high relative volume. Some of the best reversal trades will experience the highest volume 
of the day on the last candle, before the reversal. When this occurs, it is called a volume top or 
a volume bottom. On momentum trades, we need the high volume in order for the breakout to 
happen. With reversal trades, if the tide changes after an extreme sell off, the stock can grind 
back up toward the VWAP on lighter volume. As a general rule of thumb, I need to see at least 
500,000 in volume on the day, in order to consider a reversal trade. When we trade reversals on 
lighter volume, we need to be especially aware of the in
Á
uence of the overall market. When the 
overall market is very weak, a lot of stocks will show up as potential reversal candidates, because 
they are selling off in sympathy with the market. If the market does indeed bounce, these stocks 
will often bounce nicely, but if the market keeps selling, it will pull those stocks back down.

Download 3,52 Mb.

Do'stlaringiz bilan baham:
1   ...   59   60   61   62   63   64   65   66   ...   76




Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©hozir.org 2024
ma'muriyatiga murojaat qiling

kiriting | ro'yxatdan o'tish
    Bosh sahifa
юртда тантана
Боғда битган
Бугун юртда
Эшитганлар жилманглар
Эшитмадим деманглар
битган бодомлар
Yangiariq tumani
qitish marakazi
Raqamli texnologiyalar
ilishida muhokamadan
tasdiqqa tavsiya
tavsiya etilgan
iqtisodiyot kafedrasi
steiermarkischen landesregierung
asarlaringizni yuboring
o'zingizning asarlaringizni
Iltimos faqat
faqat o'zingizning
steierm rkischen
landesregierung fachabteilung
rkischen landesregierung
hamshira loyihasi
loyihasi mavsum
faolyatining oqibatlari
asosiy adabiyotlar
fakulteti ahborot
ahborot havfsizligi
havfsizligi kafedrasi
fanidan bo’yicha
fakulteti iqtisodiyot
boshqaruv fakulteti
chiqarishda boshqaruv
ishlab chiqarishda
iqtisodiyot fakultet
multiservis tarmoqlari
fanidan asosiy
Uzbek fanidan
mavzulari potok
asosidagi multiservis
'aliyyil a'ziym
billahil 'aliyyil
illaa billahil
quvvata illaa
falah' deganida
Kompyuter savodxonligi
bo’yicha mustaqil
'alal falah'
Hayya 'alal
'alas soloh
Hayya 'alas
mavsum boyicha


yuklab olish