Trading Strategies Using Technical Analysis

Fellas,

Since this thread is related to trading strategies, I would like to share my collection which I consolidated from different books... Kindly experiment at your own risk...
Currently I am researching on use of ADX/DMI. I have selected ADX/DMI because it is not so widely used and popular and hence cud give very effective signals. I wud surely share my study after sometime.

Buy Set ups

1 2 3 4 Method
1. ADX must be greater than 30
2. 14 days +DI reading must be higher than 14 days DI reading
3. Wait for the market to have 1 2 3 correction i.e. 3 consecutive intraday lower lows or 2 lower lows and one inside day
4. On day 4 only, buy 1 tick above day 3 high
5. Initial stop loss should be placed day 3 low.

Volatility Observations
1. Whenever 10 days volatility is 50% or less than 100 days volatility, large move is likely to occur
2. The longer the time frame a historical volatility remains under 50%, the larger the move will be
3. When these occurs look for the larger bar within last 9 days and trade in the direction of larger bar

The 8 day low reversal method
1. Day one must be 8 day low
2. Day two must trade above day one high
3. Day three or four or five or six must trade under the low of day two (this can be new low)
4. When condition 3 is satisfied, we buy one tick above day two high within next four trading sessions
5. Stop loss goes one tick below day two low

Spent Market Trading Pattern
1. Today it must make 10 period low
2. Todays trading range must be the largest range in last 10 trading sessions
3. Todays close must be in top 25% of the days range
4. Tomorrow or day after, buy one tick above todays high
5. Stop loss goes one tick below todays low

Sell Set ups

1 2 3 4 Method
1. ADX must be greater than 30. Higher the ADX is better
2. The DI must be greater than +DI
3. Wait for 1 2 3 rally i.e. three higher highs
4. On day 4, sell 1 tick below day three low
5. Keep stop loss near day three high

Double Volume Topping Method
1. Stock must be trading near or at three months high
2. Todays volume must be double the 15 days average volume
3. Either today, tomorrow or next day, stock must close below its open
4. When rule 3 is met within next 2 days, sell under the rule 3 day low
5. Initial Stop Loss should be placed at top of rule 3 bar

The 8 day low reversal method
1. Day one must be 8 day high
2. Day two must trade below day one low
3. Day three, four, five or six must trade above day two high (this could be new high)
4. When condition 3 is satisfied, we sell short one tick below day two low within four trading session
5. Stop loss is high of day two

Spent Market Trading Pattern
1. Today it must make 10 period high
2. Todays trading range must be the largest range in last 10 trading sessions
3. Todays close must be in bottom 25% of the days range
4. Tomorrow or day after, buy one tick below todays low
5. Stop loss goes one tick below todays high

Still student,
Apurv

Adxcellence I guess !!!



Tc

Apurv, just edit the introduction part of this system and label it as "Using ADX to Trade". Put it in bolds and size should be 3 or 4. I'll put it on the index page.

Hope it's ok.

Tc

Market's have a tendency to do same things over and over again. However, every time it finds new routes to do those things. This is something we need to understand and include it in our trading plan. The reason I am writing this is because markets are testing the patience of most of the traders. I find it hard to recollect when in the past markets have been so indecisive. I can recollect the period of 2003 when markets trended up and were due for a correction. Correction came only in May 2004 surprising everyone. Currently, markets are trading extremely weak but still it is continuing to rally. I find it hard to believe that this scenario is going to last for long. It is almost the 3rd consecutive month I am so bearish, but in my defense I have found nothing to suggest otherwise.

As a trader, I still maintain bearish positions in the longer time frame and long positions in the shorter time frame. The time for short term trades seem to be running out soon as the larger time frame begins to take effect. Technically and fundamentally we are on sticky grounds. We need to see if this situation improves or worsens. My bet still remains on the bearish side.