Home Forums Members’ Forum SPY follows the trend line

Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • ronf
    Participant
    Post count: 8
    #12517 |

    I have had 3 great trades in the past few weeks and I am looking forward to the next one as the price moves down from the high of today. Target is likely to be around $200. When the 8 crosses the 21 on the 5min, I will probably get into the trade. There could be another bounce up, but it will fade eventually and move downwards. NOTE:I will still follow our MACD trading rules regardless of this seemingly obvious trend. The trend will eventually break.
    I have attached my chart which will show when I initiated my buy and sell orders. Buy when it hit the top trend line and sell when it hit the bottom.
    The only trade that I was interested in, was one to the downside based on the downside diversion on the daily chart. Each time the price hit the top trend line, I looked for the right opportunity to buy the PUT, and when it hit the bottom trend line, I pretty much got out of the trade. Used lower timeframes to get a buy or sell signal. All trades made 100%. If you draw the support and resistance lines you will also see that they pretty much intersected perfectly with the trend line, so both methods work and I draw both to validate the trend line.

    I use the 3min charts on VXX, YINN, $DJT and the 15min ShadowTrader Quad to validate my trade direction – ALL have to support direction PLUS MACD trading rules before I enter a trade. My other charts are 30min 15min and 5min.

    ronf
    Participant
    Post count: 8

    Followup: Using the SPY 30min for a Tuesday, the price moved down following the “off the 8” rule. I think it still has a little to go (to about 204.50). Also NOTE the downward price trend line on the 30min today. I did take a trade (203Put) in “paper” just for fun when the price hit the 200SMA (on 15min) for $1.58 and just got out at $2.05 for a net 26% profit, just following the downward move as the price came back to the 8. Such fun!!

    ronf
    Participant
    Post count: 8

    NOTE: ERROR on my first post – should have read “when 8 crosses 21” on 15min chart.

    ronf
    Participant
    Post count: 8

    The trend line on the 1hr chart is no longer in play BUT its still intact on the Daily. There is downside diversions on the lower time frames BUT still need confirmation from the VXX and watching the SPY 15min and 5min charts to get a cross of 8 and 21 and a possible converging of the 50 day SMA. I also want the MACD on the 30min to move below the signal line. I probably will not do anything until the FED announcement – then if the market moves down and I get all my signals in place, I will go short.

    sueZmacD
    Keymaster
    Post count: 219

    AWESOME application of the “continuation” trade, Ron!!!

    Very clearly presented – starting with the reversal on the daily chart – then trading the continuation of the down trend on the lower time frames…

    I can’t wait to see how well you do during the next larger pull back of the market!!!

    Nicely done!!!! Congrats!!!!

    And rewarded with profits – WOW!!!!

    ronf
    Participant
    Post count: 8

    So, as expected, at around 3:30pm EST yesterday the price once again dropped and hit my trend line on 1Hr – 5min, 10min comfirmed the MACD rules, market said short, I decided to buy a 204 Put – it was a little below a resistance line of 204.17 on the 1Hr and the below the top of the gap. In at 67c and out when small candle off the 8 and 2min MACD flattening at around 9:44am, with a 155% net profit.

    I am trading at almost 95% only because my rules now include the following:

    DO NOT TRADE ON IMPULSE!!!
    IF YOU DON’T HAVE A PREDETERMINED STRATEGY OR PLAN WITH A DIRECTION AND A TARGET- DON’T TRADE!!!
    IF YOU DON’T HAVE YOUR SUPPORT AND RESISTANCE LINES IN PLACE, DONT’T TRADE!!!
    WATCH THE CHARTS, NOT THE PRICE!!!
    BELIEVE WHAT YOU SEE!!!

    Have fun….

    sueZmacD
    Keymaster
    Post count: 219

    I’m up out of my chair applauding Ron —— well done!!!!!

    And I love your additional statements —-

    Pleas keep the postings coming —- there is nothing that convinces others that they can do it TOO!!!!!

    I am so happy for you Ron —- 😉

    ronf
    Participant
    Post count: 8

    Thank you Sue – your MACD-Plus trading rules and Darshak’s “thesis before trading” methodology – just takes time to understand them…

Viewing 8 posts - 1 through 8 (of 8 total)
  • You must be logged in to reply to this topic.