The Volatile IBEX - a simple trading strategy..

[options]

Exactly m8.
Start having a look for it at high and low points on different times scales. It is present on all.

You are looking for the price to be making new highs while the indicator is sloping down making new lows. Outcome. Price drops.

Making new lows while indicator makes new highs. Outcome. Price rises

 

[nkruger]

Exactly m8.
Start having a look for it at high and low points on different times scales. It is present on all.

You are looking for the price to be making new highs while the indicator is sloping down making new lows. Outcome. Price drops.

Making new lows while indicator makes new highs. Outcome. Price rises

Thank you for that explanation, Options - that's my homework for the day sorted. Would be grateful if you come across any examples - post the graphs.

Thanks again - Nick

 

[nkruger]

Options - started my homework early (one thing I did not do at school !!) and I've found an example on the 10 min Dax chart this morning at 8.00am. The price was hitting new highs for the session (7659) while the Stoch and RSi values where going down. The price dropped 60 pips within 30 mins. Top marks for the swot at the front of the class....

Update @ 12.33 - There's loads of examples 'all over the plaice' Thanks Options - have a good day trading. (Is it sunny where you are ?)

 

[options]

Yep. Best ones are when you get 2 (sort of) double tops or bottoms that are rising/falling on the price. With the right hand one going higher/lower and the exact opposite with the indicators. Lovely to watch 'em to be sure.

I know call 'em 'A pair of unequal puppies' In honour of TT. Lol!

Sunny? Yes normally, that's one of the reasons I moved out here. Bit cloudy today though. Must still be around the high 70's.

 

[options]

'puppies'

A quick example of 'puppies' (Divergence)

Not on Ibex, but just happened to be the first one I came across.

 

[eddyjo]

Hi, going a little further with Options chart, if you now join up the tops on the RSI you
will have a trend line, if the STOCH is anywhere in OVERSOLD position go long when the
trend line on the RSI isbroken to the upside and the price is showing a green candle and
the candle is trading above any MAs. Be sure to be aware of any RESISTANCES to the price. also on E.O.D charts you can stay in the trade until the price CLOSES below the
13MA, (i use 3, 13, 39, MAs)

Eddyjo/

 

[nkruger]

I know call 'em 'A pair of unequal puppies' In honour of TT. Lol!

A friend of mine has started a movement that he's named CAPE - Campaign Against Puppy Entrapment - we extol it's virtues most Friday evenings in the local with any females we can find...

Anyway, back to work.

 

[nkruger]

Hi, going a little further with Options chart, if you now join up the tops on the RSI you
will have a trend line, if the STOCH is anywhere in OVERSOLD position go long when the
trend line on the RSI isbroken to the upside and the price is showing a green candle and
the candle is trading above any MAs. Be sure to be aware of any RESISTANCES to the price. also on E.O.D charts you can stay in the trade until the price CLOSES below the
13MA, (i use 3, 13, 39, MAs)

Eddyjo/

Good post Eddyjo - going to have an afternoon cup of tea and get to work on your theorm.

 

[nkruger]

A quick example of 'puppies' (Divergence)

Not on Ibex, but just happened to be the first one I came across.

Understand now, Options. Thanks v.much

 

[eddyjo]

there are other refinements to be aware of like basic T/A , (1) when the 3MA DIVERGES
from the 13MA too much,.. this is arbritary and comes with experience, be prepared for
a PULLBACK but dont worry as long as the 13MA is not breached.
(2) All this works better if the 39ma is trending in the trade direction,

 

[options]

live example of divergence

A potential trade short on Dow using puppies (divergence)
Attached 3 min chart live of the Dow. Price has d/topped. Indicators have diverged down.

So a potential to go short. However I would be in a long position from 13.40 as the chart is a 'long chart' I only want to trade long. And you are fighting the main trend on the 3 min chart. (I may be main trend short on say a 2 hour chart.)
And the indicators are telling me that being above the mid point I need to be long. But it has to change sometime right?
At the very least I am looking to close trade at appropriate point
I will update result just as soon as it happens.

Ideal point to close trade is at or just under 13370 or 13360

 

[fibonelli]

Hi Options,

Why are the formations called "Puppies"?

Fibonelli

 

[eddyjo]

Hi, Options, nice chart , you are spot on about D/TOPS/BTTOMS they constitute an
important part of T/A, IMO, it wise to learn the basic patterns, I think there are 7,
they also occur on the RSI frequently.

 

[options]

probs

Sorry lads, got problems uploading. I have charts saved so will try later.

Anyway My exit was at 13360 giving slight profit (43)

What is happening at this moment is that chart is trying to resume its upward journey (don't fight the trend) (Unless it is at a key stage for you)

But because of the divergence (puppies): Fib. Read back a few posts. Which can be pre very strong move and the indicators had passed to the bottom. Action was needed: Close position and wait as indicators said down and main chart said trend still up.

Just about to get another upward continuation crossing of the indicators to carry on long at 16.50

 

[options]

Reflection

Couldn't post the other charts? Think my comp doesn't like trying to do 2 at once.

Anyway this is a bit later on.

 

[fibonelli]

Hi Options,

Why are the formations called "Puppies"?

Fibonelli

Ah got it. It's 'cos they come in pairs (Terry Thomas) Phew!

 

[Van88Guy]

The Volatile IBEX - A Simple Strategy

nkruger,

I like the simple strategy for trading the IBEX. But what is the value of the first alert, when the 8 EMA crosses the 10 EMA? Why not just look to the stochastic after the short term EMA crosses the 50 EMA? Or, is there some magic in the first crossover?

Are you trading a 15, 30 or 60 min timeframe? Can I assume that you are putting stops in at the extremities of the trading channel, or are they tied to the previous minor high/low? :?:

Regards,


Van88Guy

 

[nkruger]

nkruger,

I like the simple strategy for trading the IBEX. But what is the value of the first alert, when the 8 EMA crosses the 10 EMA? Why not just look to the stochastic after the short term EMA crosses the 50 EMA? Or, is there some magic in the first crossover?

Are you trading a 15, 30 or 60 min timeframe? Can I assume that you are putting stops in at the extremities of the trading channel, or are they tied to the previous minor high/low? :?:

Regards,


Van88Guy

Good morning Van88, I find the 1st crossover alert gets me in quite quickly, as long as the Stochs look ok. That was my first concern when designing this system - speed of entry. Divergence on the RSi/Stochs helps as well for nippyness.
I'm trading on 1 min charts, looking at 5/10 mins for a longer view once in the trade.
I use a 20 pip stop, has worked ok so far to keep me in a trade. My daily target is very small, so I'm often finnished by lunchtime with the Ibex - then onto the Dow for the afternoon.....

 

[options]

Oh Deep Joy! (Now who said that?)

This stoch is fast becoming my favourite indicator.

PUPPY POWER!
(And where is that from?)

 

[nkruger]

Oh Deep Joy! (Now who said that?)

This stoch is fast becoming my favourite indicator.

PUPPY POWER!
(And where is that from?)

Deep joy = Linda Lovelace, I think
Puppy Power = My Mate Rob (C.A.P.E.)

Tee Hee.

Stoch is working well today, isn't it. Perhaps I should package it and sell it for £399.99