Rockin the boat

Trading Notes - [DRAFT]

BUY SIGNALS - 

MACD 20,43,1 - moving into positive.

20 days MA crossing over the 50 day MA.

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First thing to look for:

- lower highs and lower lows is a sign that the sellers are in control.

- The trend is your friend… 

- Trade on the side of the trend.

- IMPORTANT - If trading off daily charts, check the weekly timeframe.

- Check and double check your trade, with one timeframe up… to confirm or re-confirm your buy or sell trade.

I dont care about predicting or forecasting what may happen.

Just go with the trend. Do what the markets are doing.

IMPORTANT: 

- Has it made a lower low and a lower high?

- Is price below the 50 day moving average?

- Plus, is the 50 day moving average sloping downwards?? negative gradient.

- Buy breakouts & Sell breakdowns

- buy/sell pullpacks

- e.g. When the market is in a channel, sell when it’s at the top… buy when it’s at bottom of channel.

How to know when to enter or exit? STOCHASTIC INDICATOR.

- Trading doesnt have to be complicated

- Stochastic compared the current price to that of its range over a given period.

- If >80, then its considered overbought.

- If <20, then its considered oversold.

- In the textbooks, Stochastic indicators are usually used just for a sideways market (aka, oscillating), but here it’s used for a trending market. 

- Looking at price being in a downwards trend with 50 MA sloping down.

- When price pulls back use a cross from above as the sell signal.

- Stochastic setting - 14, 3, 3 usually. (14 cud be 12 too)

- Can be used on any timeframe.

- The SIGNAL - When 50day MA crosses the STOC line and both are going downwards. 

- When there’s a downwards trend, then look for OVERBOUGHT stoc signals, so you can sell short.

- When there’s a upwards trend, then look for OVERSOLD stoc signals, so you can buy it.

- If its a long trade, price must be above tehe 50 day MA at the buy point.

- If short trade, price must be below the 50 day sell point.