So, I just wanted to run this through you guys to make sure my methods are right. I've never really tracked indices, so I would think this belongs in the First Steps board.
First things first, I don't know if it's possible, and I couldn't find anything on google, but can you chart an index using Quantshare? And, second, is it alright if I supplement charting an index with a directly related ETF? I mean, instead of charting the actual S&P Index, I've just been charting SPY. Is there any downfall here? Like, should I instead chart the actual S&P 500 index because it would be more 'accurate?'
Second, I've been following SPY for swing trading purposes. Can any of you confirm if what I'm doing is right or wrong? I understand that a may not be right, but I just need to know if I am actually doing it right:
SPY is currently in a small uptrend on the daily view. It hit higher highs on June 19th, July 5th and July 19th while hitting higher lows on June 25th, July 12th and July 24th. When you put support and resistance levels on these points, it makes what looks like (at least to me) a small, but powerful, up trend. Currently, it is hitting the resistance. When using the RSI (3), SPY looks very overbought. It was at these RSI levels on the past high dates that SPY reversed to hit the bottom of the trend. Now, what I'm looking at, is that SPY might be making a bearish reversal candle stick pattern (more specifically, a doji or possibly a shooting star which would be even more confirming). If this is true, then would it be safe to say the SPY is going to be making more bearish moves in the next couple of days? And, if my logic is sound, could we also say that SPY should conservatively hit the support line at the bottom of the trend at least?
Thats step one. Now, if I am right about this upcoming reversal, would I also be looking for equities that are in a downtrend currently and make short plays on them? This seems like the logical next step. Or, would I also be 'safe' in playing short plays on ETFs like SPY or QQQ?
I would really appreciate some feedback here. This seems like a very fundamental aspect of trading, especially swing trading, and I really want to make sure I'm doing everything as correctly as possible. Thanks you guys.
First things first, I don't know if it's possible, and I couldn't find anything on google, but can you chart an index using Quantshare? And, second, is it alright if I supplement charting an index with a directly related ETF? I mean, instead of charting the actual S&P Index, I've just been charting SPY. Is there any downfall here? Like, should I instead chart the actual S&P 500 index because it would be more 'accurate?'
Second, I've been following SPY for swing trading purposes. Can any of you confirm if what I'm doing is right or wrong? I understand that a may not be right, but I just need to know if I am actually doing it right:
SPY is currently in a small uptrend on the daily view. It hit higher highs on June 19th, July 5th and July 19th while hitting higher lows on June 25th, July 12th and July 24th. When you put support and resistance levels on these points, it makes what looks like (at least to me) a small, but powerful, up trend. Currently, it is hitting the resistance. When using the RSI (3), SPY looks very overbought. It was at these RSI levels on the past high dates that SPY reversed to hit the bottom of the trend. Now, what I'm looking at, is that SPY might be making a bearish reversal candle stick pattern (more specifically, a doji or possibly a shooting star which would be even more confirming). If this is true, then would it be safe to say the SPY is going to be making more bearish moves in the next couple of days? And, if my logic is sound, could we also say that SPY should conservatively hit the support line at the bottom of the trend at least?
Thats step one. Now, if I am right about this upcoming reversal, would I also be looking for equities that are in a downtrend currently and make short plays on them? This seems like the logical next step. Or, would I also be 'safe' in playing short plays on ETFs like SPY or QQQ?
I would really appreciate some feedback here. This seems like a very fundamental aspect of trading, especially swing trading, and I really want to make sure I'm doing everything as correctly as possible. Thanks you guys.