This was going to be too long for a comment so here is a quick post.
I have read dozens of books about trading and have used all the indicators out there. I have also listened
to many people here and have tried many traders styles. Some I have incorporated into my own system that I liked. I heard both Sniper and AWC both say the same thing, all that matters is support and resistance so that burned in to my head.
For day trades I noticed something I hadn’t paid close attention to. First always remember the trend dictates whether you should be long or short and you must, MUST lose any bias you have for the current market and economic conditions or general news. Last year was to look for shorts, but this year it is looking for longs. That could change next week and you MUST change with them.
I use TOS (think or swim) because I have for many years and don’t like changing charting systems. Slope of Hope has great charts too so if that is what you use try it.
First I put together a list of ETF’s in a watch list. On TOS you can run any of your scans on any watch list you have. I stared adding some stocks I liked then added all the DOW stocks, top S&P stocks and Top Nasdaq 100 stocks, (by top I mean the top 25 or so). I have over 200 tickers in it now. I set it so the ones at top have the biggest $ value increase that morning.
First thing I do, in the first 10 minutes of trading is see what is the top 10 stocks and quickly pull those up a my 5 min chart. If it has gapped way up I usually pass but if it is moving on a smallish gap up I will buy it. This is especially true if it is a sector mover such as energy or biotech and such. But I also watch where
it is related to the daily pivots. If its approaching a resistance pivot point I will put in a buy level just
above the lower pivot level. The trick seems to be getting in as early as possible by only checking the top performers from your list.
In order to do this over a broad range try to get as many different sectors as possible but the secret, I think, Is to only have good stocks or ETF’s in your scan list. All sectors will have good stocks and lesser stocks, stick with the best. Don’t let your viewpoint creep into the decision stick with the best performers.
I use Persons Pivots and Fibonaccis for long and short term trading but the Fibonaccis I use mainly for LT. I set the pivots for daily and enable all three levels up and down.
My scans, which are for swing trades are simply 3EMA cross above a 9SMA on a daily chart.
I also have volume average, On Balance Volume, On Balance Volume Modified and Momentum SMA.
In Thomas Dorsey’s book on Point and Figure he talked about his KISS strategy which is merely “Keep It Simple Stupid“. That is what I have strived for while incorporating Sniper and AWC saying, “The only thing that matters is support and resistance“. My LT, ST and 5 minute intraday Fibonaccis are a whole different thing entirely but use the same strategy of Support and Resistance. On pivots, don’t try to pick a level except for a level 3 up or down. Level 3 is usually the top or bottom unless it has news driving it up or down. Instead I watch how it reacts at a Sup/Resist level.
I have swing trades and day trades, never, NEVER merge them by letting a day trade become a swing trade. I have very low threshold for loss pain and will exit very quick if something goes against me. Lately I have done very well but I have also taken a few losses, its all part of the game.
I hope this helps some of you even if you only do like I did and incorporate some of it into your own system. Trade well my fellow Slopers.
