Monday, February 29, 2016

How I apply each indicator and study into my trading decisions

Upper Studies
  • First I start with the TTM Trend. I want to make sure the bars are red when the market opens.

  • Then I want to make sure the FW MOBO Basic is showing Red so I know the stock is in a downward trend.

  • Next I watch the Bollinger bands and the 13EMA. I want to make sure the stock is moving down the bottom Bollinger band and its trending below the 13 EMA line.

  • I then Add the TTM scalper alert which will give me up and down arrows which shows higher highs and lower lows. buy or sell signals. I just follow these as a reference.



  • I then add the PPS indicator which also gives me up and down arrows. I also just use these as reference and make sure they aren't conflicting with the TTM scalper alert arrows. If there is confusion or conflict I avoid the trade because usually that means there is sideways price action.


Lower Indicators
  • TTM Squeeze was designed by John Carter. It's used after the red dot is fired off the trade is now active. I have found that the squeeze isn't always in that mode on the stocks I want to trade so I just make sure its value is negative and its starting to show a red histogram. After the red goes away you will see yellow bars. After two consecutive yellow bars you will want to cover and sell 1/3 of your position.
  • TTM Wave I have separated this indicator into two. The upper wave the crayn and yellow color. You want to take the trade when the indicator crosses below zero and becomes negative or while its still positive but looks to be going negative.
  • Next is the Major Wave which is light blue and dark blue. The wave has to be negative and light blue which means it a more powerful trend. It mostly for direction. So if the wave is positive you wont take a short trade and vice versa.
  • Finally I use a momentum indicator and just make sure its negative
I then will sell my remaining 2/3 position after the TTM Trend shows two consecutive blue bars 

To learn more about the squeeze I found a very useful PDF which gives a lot more description then I provided. 




2 comments:

  1. Hey I been looking at your material and would like to ask some questions over PM.
    Could you email me @: al3x.trades@gmail.com

    ReplyDelete
  2. Hello I was unable to access the PDF file that was mentioned can you please send me the correct link to access the PDF file thank you

    ReplyDelete