Today’s tape is a good example on how to scalp trades on the short side. Currently, as in “at this moment” I am using the bollinger to scalp some FAZ. Highlighted areas are where I enter FAZ. I wouldn’t really recommend trading this way, but for those interested…
Here’s the pseudo-algorithm I’m using:
BollingerBand set (10)
Integer DJI = Dow Jones Industrial
Integer FAZ = leverage ETF
If (market in downtrend for weekly) //test for market weakness
{
If (DJI trending up intraday)
then {
while (DJI within Bollinger Band)
{
Long FAZ
If (DJI close to bottom of Bollinger Band) THEN sell FAZ
}
Else If (DJI trending down intraday)
then {
while (DJI BELOW Bollinger Band)
{
Long FAZ
If (DJI WITHIN Bollinger Band) THEN sell FAZ
}
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Like seeing more methods. I never liked the momentum indicator, my sw version is just old price minus new so can make sharp moves based on old number. Thanks
Momentum is useless if not enough volume. the one I use incorporates volume, and I mostly use it with momentum stocks.
Interesting stuff Gio.
Oddly enough, my VIXer is beginning to spike out here on the daily. prelim short?
(sp 831 at time of typing, now the market fell a half percent and it’s less spikey)
your keyboard scares me Danny.
Your post made my eyeballs go all crazy.
Time for happy hour(s).
Gio,
Why do you use $DJI.B?
I am using SPY 3 min charts to scalp FAZ, long and short,
and it works amazingly well.
Banked excellent coin Friday, using this method.
5, 8, 13, period MA’S
8,3,3, STOCHASTIC
BOLLINGER BANDS on one 3 min chart of FAZ
VWAP on another 3 min chart of FAZ
All candle charts.