Time To Setup Your Charts - Daytrading or Swing Trading

Here is an example by Ben Brinneman on how you could setup your charts to trade in the choppy and volatile market. He named it as Tripple Whammy Setup. Refer to the time reference for day-trading below.

SET UP YOUR CHART: Ensure first that you have a good real-time streaming chart-package. We can provide that in Amibroker, and make your chart-settings as follows:

1. Chart Data Required: For DAY-Trading, 30 minutes or one hour; for SWING- Trading, 3 days or longer
2. Chart Style: CANDLESTICK
3. Chart Frequency: For DAY-Trading, one minute; for SWING-Trading, 10, 15, or 30 minutes
4. Upper Indicators: EMA (9 period) and BOLLINGER BANDS (20 period)
5. Lower Indicators: MACD (12, 26) and RSI (14) and volume.

For quick profits with a Triple-Whammy Perfect BUY (Buy-Low-then-Sell-High; or Buy-to-Cover Short-Sell), these three legs are as follows:
1. The candlesticks will violate the lower Bollinger Band.
2. RSI must fall into OVERSOLD territory, under 30, and preferably in DEEPLY OVERSOLD territory, under 20.
3. The MACD (blue) line must be under the signal (red) line, and falling; and then must turn back upwards and cross the signal line. The crossover is the final confirmation — but if the turn upwards is sharp enough, you know it’s getting ready to do a crossover, so it’s best to go ahead and act, if the prior two conditions are already in place.

For quick profits with a Triple-Whammy Perfect SELL (Short-Sell-High-then-Buy-Low; or Sell-to-Close Long Position), these same three legs are as follows:
1. The candlesticks will violate the upper Bollinger Band.
2. RSI must rise into OVERBOUGHT territory, over 70, and preferably in STEEPLY OVERBOUGHT territory, over 80.
3. The MACD (blue) line must be above the signal (red) line, and rising; and then must turn back downwards and cross the signal line. The crossover is the final confirmation.

Utilizing this technique allows you to comfortably and very profitably trade any liquid stock or index multiple times during each day. You can enter and exit both Long and Short positions at the perfect points and extract amazing profits from the massive stream of money flowing constantly between those two Bollinger Bands. Refer to the image above for the setup.