Lighting the powder keg

[Konviction]

"Someone is sitting in the shade today because someone planted a tree a long time ago." - Warren Buffet

The major weekly and monthly trends that we see on our charts came from humble beginnings. They got their start on small intraday time frames, and like a snowball rolling down hill, it got bigger and bigger and bigger.

Of course not all trades will yield massive returns, but then again this isn't about hitting home runs every single time.

Using RSI and MACD histogram, I will do my best to ride momentum in the direction of the daily trend.

I plan on this being a "short term" buy and hold strategy (long and short) to squeeze every last bit of momentum from the trend, then sell the lifeless stock back to some poor fool who doesn't know any better

This system is brand new and still in the works, and I invite all to try it out and ask questions.

Here is what I'm using:

5min chart
14 RSI
MACD histogram default settings

20min chart
10 RSI
MACD 9,19,6 settings

1hr chart
7 RSI
6,13,4 settings

daily chart
30 EMA

I always have a target of 3x my stop, or an RR or 1:3 at least.

The hard part is riding the bumpy waves and being confident that the trade will take me to a happy place.

I'll explain more of this as I go.

 

[Konviction]

Daily trend on AMP was bearish, so we took the short after RSI confirmed an overbought signal. My long on WM however was not so lucky today.

Still holding AMP short and M long.

 

[Konviction]

Lot of changes since last post. here is what I'm using now.

15m chart: ADX 25 and 30 crossovers, 66sma, 200sma, RSI and MACD, ATR trailstop (period 5, factor 2.5)
1hr charts: same as 15m
daily charts: 66sma, 200sma, 11 period RSI and MACD

I'm still focused on following the trend on the daily when the 66sma and the 200sma have crossed (+), and the 15m charts are used to take the trade in that direction.

I use ADX to help with timing, because it signals times when the market is strong or weak, however I've been notcing that on the 15m charts, the ADX was lagging price too much and I was buying in the middle or tops of strong trends, then getting stopped on the pullbacks.

I've added a "fast" ADX that will signal when strength is over 25, a little bit sooner than my standard ADX indicator. For this "fast" ADX, I'm using a period of 10.

Aprils top winner was AKAM with +395 and top loser was GILD with -163. I had 45.4% winners, but too many small losing trades gave back profits.

Stocks I'm watching that have crossed over on the daily are:

HOT, GRUB, FSLR, COH, and TPX just to name a few.

I'm looking to stay in positions as long as I possibly can, mostly due to my patience . Not only will it maximize my winners, but also cut down on commission costs.

 

[Konviction]

AKAM and GILD