Sunday, April 24, 2011

Trading Plan: Combining Momentum Entries and Hourly Pivots







Sometimes its not clear if price breaks above and below a pivot
usually I dont trade long if the pivot is not above the last pivot, however there can be setups (like on the crude oil screenshot) where it makes sense to enter using the traditional method (going long above the 2nd cluster of green bars.

So there are 7 possible entries I use:
  • In a trend or in the opening hour, bounce of the pivot line or R1 / S1
  • On a bounce of the S1 or S2 at the low of the day
  • Break of the pivot line together with a trendline break
  • Break above the bars that are green (if there has been within 10 min ago a series of green bars that was higher than the current green bar = tpyical start of a trend = up move, down move and now a lower entry price)
  • Stop Buy Order above a Blue Volume Spread Analysis Bar (that is lower than a series of green momentum bars)
  • Break below the bars that are red (if there has been within 10 min ago a series of red bars that was lower than the current red bar = tpyical start of a trend = down move, up move and now a higher entry price)
  • Stop Sell Order below an Orange Volume Spread Analysis Bar (that is higher than a series of red momentum bars)
And 5 possible exits:
  • Counter Signal (entry in other direction)
  • Long Trade Trailstop below the bar that reached R1, 50% R12, R2
  • Short Trade Trailstop above the bar that reached S1, 50% S12, S2
  • Long Trade Trailstop below red VSA bar above R2
  • Short Trade Trailstop above blue VSA bar below S2


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