Simple Profitable Method

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Quote from trader28:

For those aggressive traders I want to point out the re-entry method using the 3 SMA (2+ Horizontal Shift)

The 2 things you really want to look for are:

1: MACD does not breach it's MA on the pullback
2: PRICE does not breach the 25 SMA on pullback

What this means is the pullback is so weak that all the MOMENTUM is still with the trend and you have a high probability of the re-entry trade off the 3 SMA being successful

The short here where price pops below the 3 SMA (white line) is a perfect example: http://i10.tinypic.com/2q8dpup.jpg


Here are some more examples, initially re-entries to the upside, then to the downside: http://i9.tinypic.com/2wdr60i.jpg
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T28,

Thanks for sharing these examples.

Just a few questions:

a) I am assuming the aggressive short you referred to in the first example is where the vertical white line of the cursor is positioned about 09:30am.

What then is the significance of the black arrow/white cross shown at the start of day at 08:30am?

b) For this short, is the exit trigger when price closes above the 3 SMA, about 09:42?

c) If the 3 SMA acts as the exit trigger, then, can you please confirm that there were 4 scalps on the way up and 4 on the way down in the second example?

Thanks again.

Regards
PotV
 
Quote from potemkinvillage:

T28,

Thanks for sharing these examples.

Just a few questions:

a) I am assuming the aggressive short you referred to in the first example is where the vertical white line of the cursor is positioned about 09:30am.

What then is the significance of the black arrow/white cross shown at the start of day at 08:30am?

b) For this short, is the exit trigger when price closes above the 3 SMA, about 09:42?

c) If the 3 SMA acts as the exit trigger, then, can you please confirm that there were 4 scalps on the way up and 4 on the way down in the second example?

Thanks again.

Regards
PotV
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No the vertical white line is the open of the session

The re-entry signal is when the price pops below the 3 SMA (other white line) about 20 minutes after open

This is virtually identical to the floor traders method explained here: http://www.trading-naked.com/FloorTraderMethod.htm
except the 3 SMA will get you in at a better price

In the 2nd example there are 3 long re-entries and 3 short re-entries after the intitial Zero Line crosses
 
Quote from Visionary8:

Trader 28

Do you sclap options or reg. stocks?

If you trade reg stocks, how many shares do you buy at a time, at what price ranges?
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No none of that, hard enough concerntrating on the ER2 at 4 in the morning without adding anything else
 
Good stuff T28. It's almost clear now :)

Last thing, when you're short, do you use the 3 SMA as an exit trigger if price closes above it and you're inside 10 minutes?

Thanks
 
Quote from potemkinvillage:

Good stuff T28. It's almost clear now :)

Last thing, when you're short, do you use the 3 SMA as an exit trigger if price closes above it and you're inside 10 minutes?

Thanks
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You certainly can but there are no hard and fast rules on re-entry trades, some days you know it's just tearing away and you may hang in there longer, otherdays the market is giving you nothing and you have to scalp it, thats all part and parcel of trade management, or you may come up with your own exit strategy
 
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