Fibonnacci Gridding

A auto fibbing tool was always in plan to do.

but now i am developing an indicator which could be potentially be used for Fibbing. The Key is not to have any other indicator. With this indicator you will have all Fib levels from most significant to least significant based on the time frame.

- GL

Using Zig Zag indicator output for the last swing, fib grid the entire chart. On this chart, all the lines are  plotted, which may not be necessary. For example, in the following hourly chart, its clear how the purple and black lines were significant. Similarly, going lower can give you much of a trading advantage with the orange lines. Going higher in time frame, will eliminate the need for orange, purple lines.

Indicator for Larry Conners RSI Pullback Strategy

Hey All,

Here is another indicator, will be available on Tuesday (09-02-2014) at tradingview.com

This indicator is designed to track the Larry Conner's RSI - 2 Trading Strategy.

Indicator works based on the following inputs

1. RSI (2)
2. Moving Average (50 & 200)
3. Historical Volatility
4. ADX (10)
5. 21 SMA Volume

link to his strategy book - Short Term Trading Strategies and 2-Period RSI Pullback Trading Strategy

Good Luck (حظا سعيدا) (buena suerte).

FB - Daily Breakout

GL Trading folks.

Selling Put credit spread, of buying calls on pullback is good. Or buying the stock itself. Make sure to trade with s/l. dont trade anything that you cant afford to lose.

Disclamer

Can someone manage your trading account? (Stop paying for trade alerts)

Today I wanted to show you facts from one website, and their member only trade records. Well, there are few assumptions I made. This website has been consistent in blowing up accounts. These trades were from Jan 01-2014 to Aug 20-2014. (Subscription fee for 1 year is around $500, and has about 120 Subscribers) That is good enough income for any average american. 

Tons and tons of websites for alert service, I am tired with this crap. Alert services target novice traders, because they prey on them. Its the truth and deal with it. Any professional trader will accept this. 

2012 - 2013 I have been on many different website, never took a trade on their recommendation, instead was trading my plan.

I don't blame them, A trader can manage his account well. No Matter how good a trader is, he cannot mange your account because he will not know your risk tolerance in the market, so please stop paying others for trade alerts, pick a strategy, paper trade and stick to it.  You will soon become independent and care less about what others say about your stock.

Entry	Exit	Shares/Options	Entry	Exit	P/L	$10,000.00	Starting Balance
0.5	0	1000	500	0	-500	$9,500.00
1.45	2.73	500	725	1365	640	$10,140.00
1.45	2.35	500	725	1175	450	$10,590.00
2.6	0	1000	2600	0	-2600	$7,990.00
0.45	1.1	1000	450	1100	650	$8,640.00
0.51	0.34	1000	510	340	-170	$8,470.00
1.98	1.2	1000	1980	1200	-780	$7,690.00
2.28	1.95	1000	2280	1950	-330	$7,360.00
1.85	1.2	1000	1850	1200	-650	$6,710.00	Not enough fund for next trade
8.55	4.275	1000	8550	4275	-4275	$2,435.00	This was a no stop position. if you did not get stopped out.
0.85	0	1000	850	0	-850	$1,585.00	Not enough fund for next trade
2.63	1.315	800	2104	1052	-1052	$533.00	Account Blown - Not enough Fund to trade 10 Contracts
2.5	3.3	500	1250	1650	400	$10,933.00	Refunding 10k
2.5	4.57	500	1250	2285	1035	$11,968.00
1.45	0.98	1000	1450	980	-470	$11,498.00
1.64	0.8	1000	1640	800	-840	$10,658.00
2.85	3.84	1000	2850	3840	990	$11,648.00
2.85	3.74	1000	2850	3740	890	$12,538.00
0.75	0.6	1000	750	600	-150	$12,388.00
1.18	0.81	1000	1180	810	-370	$12,018.00
2.14	2.32	1000	2140	2320	180	$12,198.00
0.68	1.5	500	340	750	410	$12,608.00
0.68	2	500	340	1000	660	$13,268.00
4	3	1000	4000	3000	-1000	$12,268.00
3.33	1.05	1000	3330	1050	-2280	$9,988.00
0.34	0.8	1000	340	800	460	$10,448.00
1.32	1.25	1000	1320	1250	-70	$10,378.00
0.81	0.6	1000	810	600	-210	$10,168.00
0.53	0.77	500	265	385	120	$10,288.00
0.53	0.6	500	265	300	35	$10,323.00
0.67	1.88	500	335	940	605	$10,928.00
0.67	1.15	500	335	575	240	$11,168.00
1.1	0.69	1000	1100	690	-410	$10,758.00
1.3	0.88	1000	1300	880	-420	$10,338.00
1	1.34	500	500	670	170	$10,508.00
1	2.44	500	500	1220	720	$11,228.00
0.63	1.02	1000	630	1020	390	$11,618.00
0.83	1.7	1000	830	1700	870	$12,488.00
1.8	2.19	500	900	1095	195	$12,683.00
1.8	2.5	500	900	1250	350	$13,033.00
0.22	1.2	1000	220	1200	980	$14,013.00
1.55	1.05	1000	1550	1050	-500	$13,513.00
5.45	6.6	1000	5450	6600	1150	$14,663.00
0.9	1.78	500	450	890	440	$15,103.00
0.9	1.93	500	450	965	515	$15,618.00
1.03	1.41	500	515	705	190	$15,808.00
1.03	2.18	500	515	1090	575	$16,383.00
1.33	2.35	1000	1330	2350	1020	$17,403.00
2.4	4.85	500	1200	2425	1225	$18,628.00
2.4	4.25	500	1200	2125	925	$19,553.00
0.93	0.99	1000	930	990	60	$19,613.00
0.98	1.02	1000	980	1020	40	$19,653.00
1.14	1.75	500	570	875	305	$19,958.00
1.14	1.08	500	570	540	-30	$19,928.00
2.45	3.3	500	1225	1650	425	$20,353.00
2.45	4.9	500	1225	2450	1225	$21,578.00
2.8	1.15	1000	2800	1150	-1650	$19,928.00
2.31	2.77	1000	2310	2770	460	$20,388.00
1.85	0.5	1000	1850	500	-1350	$19,038.00
0.35	0.5	1000	350	500	150	$19,188.00
0.63	0.91	500	315	455	140	$19,328.00
0.63	1.25	500	315	625	310	$19,638.00
1.6	1.72	1000	1600	1720	120	$19,758.00
2.3	2.95	500	1150	1475	325	$20,083.00
2.3	1.93	500	1150	965	-185	$19,898.00
0.83	1.06	500	415	530	115	$20,013.00
0.83	1.19	500	415	595	180	$20,193.00
0.4	1.03	1000	400	1030	630	$20,823.00
0.6	1.45	1000	600	1450	850	$21,673.00
1.97	0	1000	1970	0	-1970	$19,703.00
0.82	1.2	500	410	600	190	$19,893.00
0.82	1.47	500	410	735	325	$20,218.00
1.68	1.1	1000	1680	1100	-580	$19,638.00
1.15	0.94	1000	1150	940	-210	$19,428.00	8 Months Still not Broke EVEN in this MARKET.

It is very Clear that someone cannot manage your risk. I do have many proof that I have accumulated from 2012 - 2013. Same story different numbers.

Cheap and Liquid ETF

Cheap and Liquid ETFs are another way to take part in the futures market. Therefore, I want to share this quick list of ETFs, for those who don't trade options.

Ticker	Description	Underlying
DBA	PowerShares DB Agriculture ETF	AGRICULTURE
DBC	PowerShares DB Commodity Tracking ETF	COMMODITY
UUP	PowerShares DB US Dollar Bullish ETF	DOLLAR INDEX
SDOW	ProShares UltraPro Short Dow30	DOW JONES
EDC	Direxion Daily Emrg Mkts Bull 3X Shares	Emerging Market
EDZ	Direxion Daily Emrg Mkts Bear 3X Shares	Emerging Market
FAZ	Direxion Daily Financial Bear 3X Shares	FINANCIAL
EWG	iShares MSCI Germany	GERMANY
IAU	iShares Gold Trust	GOLD
JDST	Direxion Daily Jr Gld Mnrs Bear 3X Shrs	GOLD MINER
DUST	Direxion Daily Gold Miners Bear 3X Shrs	GOLD MINER
JNUG	Direxion Daily Jr Gld Mnrs Bull 3X Shrs	GOLD MINER
TBF	ProShares Short 20+ Year Treasury	INCOME FUND
PIN	PowerShares India ETF	INDIA
EWJ	iShares MSCI Japan	JAPAN
DGAZ	VelocityShares 3x Inv Natural Gas ETN	NATURAL GAS
UGAZ	VelocityShares 3x Long Natural Gas ETN	NATURAL GAS
PSQ	ProShares Short QQQ	QQQ
QID	ProShares UltraShort QQQ	QQQ
SQQQ	ProShares UltraPro Short QQQ	QQQ
RWM	ProShares Short Russell2000	RUSSELL 2000
RSX	Market Vectors Russia ETF	RUSSIA
SLV	iShares Silver Trust	SILVER
TZA	Direxion Daily Small Cap Bear 3X Shares	SMALL CAP
SPXS	Direxion Daily S&P500 Bear 3X Shares	SPX
SDS	ProShares UltraShort S&P500	SPX
TVIX	VelocityShares Daily 2x VIX ST ETN	VIX

And yes I know, the Crude Oil, Australia, Europe and China ETFs are missing. The Goal is to pick the ETFs that are cheap to trade. 

Add them to have a list of ETFs complete for all the markets. I usually trade the Stocks (SPX, QQQ, IWM, DIA), Commodity (GLD, SLV), Bonds (TBT) based ETFs. Occasionally trade the rest, for example, very recent Brazil and India run up etc. 

Good Luck

Indicator Code for BB-%BB

For those who wants the code (pine script) for the indicator mentioned in the previous post BB-%BB

Follow this link. http://pastebin.com/WqCsMhhv

Thanks to Chris Moody from tradingview for developing this indicator and making it sophisticated enough to spot the overbought / oversold levels.

Please use the Squeeze along with this. Chris Moody has already done some work with the squeeze, he is a moderator from tradingview and is ready to help (https://www.tradingview.com/u/ChrisMoody/).

He also has built various indicators. Wouldn't hurt to learn a few of his strategy. Good Luck folks. 

What is Really Oversold / Overbought Level?

Have you ever wondered a security going low, after hitting Oversold?

When I was a novice trader, I had spun my head around this oversold and questioned why this pos does not reverse as the theory say. Remember market feeds on novice traders.

The key to trading oversold pattern is getting one concept straight in your head. Instead of watching one time period indicator, do it on a multi-time frame. Because "Oversold" is subjective, to take any advantage, the underlying needs a strong trend or momentum in one direction.

If you guys have seen the video on RSI 3 pullback and push back technique, that is one way to take the oversold and overbought level trades in a strong trending market.

Now there is another way to attack these levels, when the stock is moving sideways. But this also requires you to know some math and behavior of two other indicators. (just 2)

1. Bollinger Band 
2. %Bollinger Band

If you have no idea about SMA vs EMA please learn them as well.

3. SMA
4. EMA

Before I proceed with the strategy, I have to remind you, Set your target and stop losses based on price action itself, not based on indicators, unless you want to loss your account to others.

Firstly, you need to understand the Squeeze. Which is nothing but the Bollinger band contracts inside Keltner channel.

1. The indicator is simple Bollinger band on %Bollinger band.

Chart Settings and Chart Looks Like This.

For those who need further help, this is how I set it up.

Now here is the interesting part.

1. Do not use this setup and trade if the Squeeze has recently fired. Typically when the squeeze fires, take the trade based on the squeeze direction. If you take the opposite side, that's a great way to burn yourself with squeeze fire. (Learn about the Squeeze Duration, and the Squeeze Momentum, google it "TTM Squeeze Explained")

2. While the Stock is in a Squeeze (same time period or higher time period). the %BB line is outside the %BB Bollinger Band (lower - oversold and upper - overbought). Its a good time to plan your trade based on the traditionally spoken theory on oversold and overbought, and execute the plan.

3. While the stock is in a strong uptrend and the there is no squeeze, take the trade using the same oversold and overbought theory for a good bounce trade in the same direction as the trend.

This strategy is good for any time period, Although, Swing Scalpers (1-3 Days) can use Daily Chart, Swing traders (3-10 Days) can use weekly charts. Try and stay away from 1 mins-60 mins, unless you can be nimble and mechanical enough to cut losses

Trading is risky, keep stops at meaningful levels.

Ofcourse, the charts are here.

Use the following Chart to try and understand.

https://www.tradingview.com/x/FmUr1tp9/

https://www.tradingview.com/x/SgYCxqhI/

https://www.tradingview.com/x/4N8se0gk/

Again, this is another trick for me to read the oversold and overbought levels. I dint want to hide it any longer. ENJOY. The Stretch Indicator will have these levels taken into account, will not have anything on the squeeze.

Good Luck Folks. Arm yourselves better.