Triple Screen Swing Trading

[Fran8]

Hi everyone¡¡¡¡

I use a similar system as the one of Dr Alexander Elder explains in his book trading for a living. Basically a swing trading system with entries on pullbacks.

The question that I have is if someone could help me or give me directions on how to trigger the trade. The system explained in the book says that once is oversold to place a buy order just one tick above the high, but with this entry many times the stock keeps goin down or nowhere.

Please coould you advaice in a possible trigger when the trend is reversing again.

Thanks
Kind Regards

 

[malaguti]

Hi everyone¡¡¡¡

I use a similar system as the one of Dr Alexander Elder explains in his book trading for a living. Basically a swing trading system with entries on pullbacks.

The question that I have is if someone could help me or give me directions on how to trigger the trade. The system explained in the book says that once is oversold to place a buy order just one tick above the high, but with this entry many times the stock keeps goin down or nowhere.

Please coould you advaice in a possible trigger when the trend is reversing again.

Thanks
Kind Regards

You've got to love books like that..buy on the dips, buy when its going down, with one tick above the high. Dr my ****. The simplest way is to buy after the price has gone down and then starts going back up and then past the point which was the previous high. Thats a breakout entry. The alternative is to assess on a lower time frame when you start getting higher highs & higher lows. Preferably a classic reversal pattern such as a double bottom or head and shoulders reversal on something like an hourly or 2 hourly time frame.
They are two methods you could use. There are loads to be honest.

 

[Fran8]

Do you use any indicator as a trigger?

 

[malaguti]

Do you use any indicator as a trigger?

certainly not, chart patterns are easy to spot, if there's nothing obvious then I will simply wait for a break of the previous high.

 

[Steven2805]

Do you use any indicator as a trigger?

Indicators are your worst enemy, they are the hydraulics on a low rider. Purely for show and slow you down in the end.

Clear your charts and look at PRICE, where has it been & where is it going.

 

[Traderallen]

Fran8 if you're going to use the triple screen method that is taught by Alexander Elder. This is my opinion of the best way to do it. First you have to start with the overall market form of bias as to whether the market is bullish or bearish. Will assume bullish like the market currently is. Next you need a formal list of stocks with good fundamentals. There are many free websites out there to help with this. So now you have a list of good quality stocks in a bullish market. Next using Elders method or any other similar method sort them out technically to which once of the best-performing charts. Now you want to get in at the best possible price. This is easy part set up a chart with the spy or similar index. You can use a 2period Williams percentR on the index wait for the market to be oversold. Which the stocks are looking to enter should also be pulling back at the same time. Now the time to buy. It doesn't matter what the exact entry point is. You just purchased a good fundamental stock in a bull market that has pulled back to support. What more could you ask for. Set your stop at a prior support level. And let it run.

 

[malaguti]

This is easy part set up a chart with the spy or similar index. You can use a 2period Williams percentR on the index wait for the market to be oversold.

This is probably the reason why the OP is having problems. only once in the last year has the williams given you an indication of an oversold market. Meaning he enters and it keeps on going down..which is what the original issue is.

 

[Traderallen]

I count at about 16 in just the last few months. Look to buy every time the signal line dips below the green line


http://i250.photobucket.com/albums/gg264/traderallen/SPYr_zps608623cd.png

 

[malaguti]

I count at about 16 in just the last few months. Look to buy every time the signal line dips below the green line


http://i250.photobucket.com/albums/gg264/traderallen/SPYr_zps608623cd.png

my chart was weekly hence the lower number, but its when you line those points up do you find that its not actually indicating the market is oversold, or else price wouldn't keep coming down. to buy every time you get to an oversold level per williams, you would need balls of steel to keep in that trade or an extremely generous stop level. or of course a better entry method

 

[Fran8]

How much time do you give the trade to work out. One of the problems that i find when a buy on pullbacks is the time. I explain- when you buy a breakout either it works out straight away o very early or it does not work at all, with pullbacks after you get a signal from an indicator that is oversold normally the stock will trade sideways

 

[malaguti]

How much time do you give the trade to work out. One of the problems that i find when a buy on pullbacks is the time. I explain- when you buy a breakout either it works out straight away o very early or it does not work at all, with pullbacks after you get a signal from an indicator that is oversold normally the stock will trade sideways

personally I wait until my stop is hit. I enter mostly on the break of the previous hgh, it might be late but the odds are stacked in my favour, unless I can see an obvious reversal pattern on a lower time frame.
Honestly, though I don't mind sideways action. If it break out and then goes back into the consolidation this isn't a reason to exit. Only if my stop is hit will I get out. A consolidation is a continuation pattern mostly. So wait it out.
Choose an appropriate stop of course.
And I really, really do NOT enter on an indicator. Nothing will reliably tell you something is oversold. Similarly overbought.