This is a strategy for Swing Traders who just want to capture the swing and don't want to hold the stock for months. This strategy requires 3 indicators:- [1] Bollinger band (20,2) and Bollinger band (20,1) [2] Volume [3] MACD
Trade Setup for Long:- 1] The candle which closes above UB 2, we will call it BREAKOUT CANDLE.
The BREAKOUT CANDLE should have following properties; a) The volume of this candle should be greater than previous TWO CANDLE's volume. b) MACD histogram and MACD line should be greater than zero.
2] There should be minimum TWO CANDLES just before the BREAKOUT CANDLE which closed between UB 2 and BASIS. Those TWO CANDLES should consists of atleast one RED CANDLE. And that RED CANDLE should not touch the BASIS.
TIMEFRAME:- DAILY CHART.
When all of the above requirements is fullfilled we can BUY above the high of BREAKOUT CANDLE. STOPLOSS is 1 point below the low of BREAKOUT CANDLE. TARGET is 2 times the STOPLOSS.
DISCLAMER:- this is for educational purposes only. DON'T apply this startegy directly with real money. First do paper trade and see the results and analyse the profitability of this strategy.
Commento
I am adding one more condition for breakout candle i.e. the upper wick of breakout candle should not be very long.
If you want a fixed value you can use the below calulations. *Candle's upper wick should be less than 15% of the entire range of the candle. (high-close) < 0.15 of (high-low) in the above breakout candle high=368.9, low=342.1, close=366.2 if we apply the formula 368.9-366.2 < 0.15x(368.9-342.1) 2.7 < 4.02
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.