I am calling an audible for this site. I had promised to limit myself to one simple method and six symbols (it started as five). I am changing that slightly. I will still be using the six symbols, but I am going to expand a little on the method.
Let’s give it a try, shall we? You in the back, pipe down!
S&P 500: The EMAs (exponential moving averages) are betwixt and between for this symbol. The 8 (red) is above the blue (21), both are below the brown(55). This is downtrend for us and precludes a long trade. Going forward we are going to use a combination of moving averages and highs and lows to define trend. In other words, the stuff in Book 1 of my Basic Trading Series. We won’t do anything with this symbol at this point.
Apple: Apple has the same pattern as the S&P, so let’s look at the chart.
I forgot to mention, it was a Point and Figure chart. You see the downtrend line has been broken and we are getting upside targets. The most recent column of Xs gave us a buy trigger at $273.69. So I would normally place my stop-buy just above $274. But I will remain, to a degree, with the system all can easily see and place it at $289. If we have a trade, details and the chart will appear like magic tomorrow.
Gold: Gold is still in an uptrend. The price is above all the moving averages. Our trade is still intact and as mentioned yesterday the trailing stop has made this trade profitable – no matter what. This is for the stock market proxy UGL.
Oil: This symbol has triggered a short in the futures. The stock proxy SCO is still not showing the same profile. The condition we can note on the futures chart is that oil continues to flirt with a shelf of support at the $20.
USD/EUR: The uptrend and the subsequent crossing of the 8 EMA (red) caused us to go into a long trade on our proxy, EUO. As of yesterday, it seemed we would be stopped out. Let’s take a look at the chart.
The yellow shaded area is today’s candle. The red down candle to the left is where we were almost stopped out yesterday. A reprieve!
Bitcoin: This futures contract had given us a short signal. We had a downtrend, the price had crossed above the blue and then back across blue and red…giddyup.
Let’s take a look at our Bitcoin proxy.
All our conditions are met, except for the price itself. You can see the most recent candle and as you look to the left a red down candle sitting below the 8 EMA (red). I have placed a stop-sell just below that candle. The reason is if you look further left you can see a rising window or gap. The bottom ledge of that window represents support. If I place a short above that level I am asking for the price to bounce off of it.
So we wait to see if we are into this trade. Details to come if we are.
Any questions or comments, drop me a line at: firstname.lastname@example.org.