Trading Setup Tutorials : "Relative Strength Indicator (RSI) Intraday Trading"

INTRADAY TRADING STRATEGY USING RELATIVE STRENGTH INDICATOR (RSI)

J. Welles Wilder is a giant in the field of technical analysis. In “New Concepts in Technical Trading Systems”, he introduced an array of trading indicators. Now, these indicators are among the most popular. And one of them is the Relative Strength Indicator (RSI).

The default RSI setting of 14 periods works well for swing traders. But many intraday traders find it lacking because it produces infrequent trading signals.

Some traders deal with this problem by lowering their time-frame. Others lower the RSI period setting to get a more sensitive oscillator. However, these solutions produce RSI signals that are more unreliable.

Getting infrequent trades is not always a problem for intraday trading. That is if the few trading setups that show up are high-quality ones.

The idea is to combine the default 14-period RSI with support/resistance zones. Our aim is to find intraday reversal setups with a high reward-to-risk ratio.

MCX Silver Technical Analysis

Bursting Setup – MCX Silver

Recently we witnessed a breakout in MCX Silver which occurred after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

MCX Silver - 60 Minutes

MCX Silver gave this breakout of nearly 1800 points after breaking the Upper Price Wall of 36621.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

Trading Setup Tutorials : "INSIDE DAY NR4 (ID/NR4)"

INSIDE DAY NR4 (ID/NR4) TRADE SETUP

Toby Crabel did some serious work on volatility patterns in price movement. The Inside Day/NR4 (ID/NR4) is one of the patterns he wrote in “Day Trading with Short Term Price Patterns and Opening Range Breakout“.

An inside day is one with a lower high and higher low than the previous bar. NR4 is a bar with the narrowest range among the last 4 bars.

Hence, ID/NR4 is an objective criterion for identifying days of decreased range and volatility.

Once an ID/NR4 is found, we trade the breakout as volatility resumes.

TRADING RULES FOR ID/NR4

RULES FOR LONG

1.    An inside bar with the smallest range among the last 4 bars.

2.   Place buy stop order above the high of the bar.

3.   Wait for break-out to trigger order.

RULES FOR SHORT

1.    An inside bar with the smallest range among the last 4 bars.

2.   Place sell stop order below the low of the bar.

3.   Wait for break-out to trigger order.

Trading Setup Tutorials : "9/30 TRADING SETUP"

9/30 TRADING SETUP

This trading setup uses two moving averages: the 9-period exponential moving average (EMA) and the 30-period weighted moving average (WMA).

LONG SETUP

1.   9 EMA above 30 WMA.

2.   Close below 9 EMA (More conservatively, entire bar below 9 EMA).

3.   Place buy stop order above the high of the bar that closes below 9 EMA.

SHORT SETUP

1.   9 EMA below the 30 WMA.

2.   Close above 9 EMA (More conservatively, entire bar above 9 EMA).

3.   Place sell stop order below the low of the bar that closes above 9 EMA.

Trading Setup Tutorials : "Andrew's Pitchfork Trading Strategy"

Andrew’s Pitchfork Trading Strategy

Alan Andrew’s Pitchfork is catchy. It catches your attention with its unusual name and its striking pitchfork appearance. It also catches trends with a channel.

Essentially, Andrew’s Pitchfork is a tool for drawing price channels. While two lines surrounding price are usually enough to draw a channel, the Pitchfork has an extra line. It is the median line or the handle of the Pitchfork.

The median line is central to this trading method. This is why Andrew’s Pitchfork is also known as the Median Line Method.

HOW TO DRAW THE ANDREW’S PITCHFORK

There are three steps to drawing a Pitchfork.

COMEX Gold Technical Analysis

Bursting Setup – COMEX Gold

Recently we witnessed a breakout in COMEX Gold which occurred after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

COMEX Gold - 15 Minutes

COMEX Gold gave this breakout of nearly 20 points after breaking the Lower Price Wall of 1231.5 .

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

NYMEX & MCX CrudeOil Technical Analysis

Bursting Setup – NYMEX & MCX CrudeOil

Recently we witnessed a breakout in NYMEX CrudeOil which occurred after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

NYMEX CrudeOil - 240 Minutes

NYMEX CrudeOil gave this breakout of nearly 7 points after breaking the Upper Price Wall of 35.32 . 

MCX Silver Technical Analysis

Bursting Setup – MCX Silver

Recently we witnessed a breakout in MCX Silver which occurred after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

MCX Silver - 15 Minutes

MCX Silver gave this breakout of nearly 700 points after breaking the Lower Price Wall of 37472. Price Consolidated. Price Pattern was acceptable. Volume Pattern was acceptable.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

MCX Gold Technical Analysis

Bursting Setup – MCX Gold

Recently we witnessed a breakout in MCX Gold which occurred after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

MCX Gold gave this breakout of nearly 300 points after breaking the Upper Price Wall of 29015. Price Consolidated. Price Pattern was acceptable. Volume Pattern was acceptable.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

Trading Setup Tutorials : "Moving Average Channel Trade Setup"

MOVING AVERAGE CHANNEL

This day trading setup by Jake Bernstein uses a moving average channel to figure out trend and key support and resistance levels. We will build a moving average channel with a 20-period SMA of highs and lows.

Source: The Compleat Day Trader, Second Edition

RULES FOR LONG DAY TRADE

1.  Wait for two consecutive bars to move entirely above the high of the channel.

2.  Buy as price tests the 20 SMA of lows (more aggressive traders can buy on test of 20 SMA of highs).

RULES FOR SHORT DAY TRADE

1.  Wait for two consecutive bars to move entirely below the low of the channel

2.  Short as price tests the 20 SMA of highs (more aggressive traders can sell on test of 20 SMA of lows)

MCX Gold Technical Analysis

Bursting Setup – MCX Gold

This is a recent breakout example of MCX Gold. The breakout came into effect after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors. 

This is the recent example for MCX Gold-

MCX Gold - 15 Minutes

It broke the Upper Price Wall of 29365 and it has already given 300 points in Intraday in MCX Gold. Prices consolidated. Price Pattern was acceptable. Volume Pattern was acceptable. Lets see where it takes Gold from here on.

Trading Setup Tutorials : "The Sandwich Trade Setup"

The Sandwich Trade Setup

The sandwich trade is made up of multiple candles and involves an engulfing bar. It forms by the market going up or down sharply and then having multiple small bars follow it. After those small bars a bigger bar engulfs the previous small bars. This essentially forms a sandwich and you will get a better idea of what it looks like.

It can act as a reversal signal or a continuation signal depending on whether the 2nd big bar is bullish or bearish.

What a Sandwich Trade Looks Like

The diagram below shows a bullish sandwich trade, notice how the price drops sharply down then it is followed by a couple small bars. Then an engulfing bar consumes all of the small bars since the sharp price drop. This is a simple example of a sandwich trade.

MCX Lead Technical Analysis

Bursting Setup – MCX Lead

Recently we witnessed a massive breakout in MCX Lead after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

MCX Lead  - 60 Minutes

MCX Lead has already given a breakout of nearly 7 points after breaking the Lower Price Wall of 124. Prices consolidated. Price Pattern was acceptable. Volume Pattern was acceptable. Lets see how it goes.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

S&P Futures Technical Analysis

Bursting Setup – S&P Futures

Earlier in the day we have seen a Major Breakout in S&P Futures after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

This is a live example for S&P Futures-

S&P Futures - 240 Minutes

S&P Futures has already given this breakout of nearly 25 points in Intraday after breaking the Upper Price Wall of 1897 followed by a Bull Flag to the upside with an estimated target of 1950-1960 Area. Prices consolidated. Price Pattern was acceptable. Volume Pattern was acceptable. Lets see how it goes.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

DOW Technical Analysis

Bursting Setup – DJI (Dow)

Earlier in the day we have seen a Major Breakout after the formation of The Bursting Setup in MCX Gold 11February 2016. This is yet another live example in DOW Futures. The Bursting Setup is a breakout technique developed by The Financial Doctors.

This is a live example for DOW Futures (DJI)-

DOW Futures - 240 Minutes

DOW has already given this breakout of nearly 250 points in Intraday after breaking the Lower Price Wall of 15729. Prices consolidated. Price Pattern was acceptable. Volume Pattern was acceptable. Lets see how it goes.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

MCX Gold Technical Analysis

Bursting Setup – MCX Gold

The previous day we discussed about The Bursting Setup formation in 120 Minutes NYMEX CrudeOil Chart 10 February 2016.

Today we witnessed the breaching of Upper Price Wall in MCX Gold of 28527 which is also the high of Bull Flag. Now its possible that we can see 29000-29300 level soon

MCX Gold - 240 Minutes

Price Pattern is acceptable. Volume Pattern is acceptable. It should start its breakout mode anytime. Lets see how it goes.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

NYMEX CrudeOil Technical Analysis

Bursting Setup – NYMEX & MCX CrudeOil

After yesterday's breakout in NYMEX CrudeOil 120 Minutes, this is yet another live breakout example of MCX CrudeOil followed by the breakout in NYMEX CrudeOil. The breakout came into effect after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

This is the live example for MCX CrudeOil-

MCX CrudeOil - 15 Minutes

It broke the Lower Price Wall of 1924. Prices consolidated. Price Pattern was acceptable. Volume Pattern was acceptable. It has already given '30 points. Interestingly it is hovering over a Lower Price Wall of “$27.72” in NYMEX CrudeOil.

NYMEX CrudeOil Technical Analysis

Bursting Setup – NYMEX CrudeOil

This is a live breakout example of NYMEX CrudeOil followed by the breakout in MCX CrudeOil. The breakout came into effect after the formation of The Bursting Setup, a breakout technique developed by The Financial Doctors.

This is the live example for NYMEX CrudeOil-

NYMEX CrudeOil - 120 Minutes

It broke the Lower Price Wall of ‘$29.57’. Prices consolidated. Price Pattern was acceptable. Volume Pattern was acceptable. It already has given '$1.50' followed by some important support on the downside. Interesting to see where it takes CrudeOil from here on.

MCX Gold Technical Analysis

Bursting Setup – MCX Gold

Earlier this day we discussed about The Bursting Setup formation in 60 Minutes MCX CrudeOil Chart 8 February 2016. And now we are here with yet another success story in MCX Gold.

This is a recent example for MCX Gold-

MCX Gold - 15 Minutes

MCX Gold gave this breakout of nearly 350 points in Intraday after breaking the Upper Price Wall of 28041.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor

MCX CrudeOil Technical Analysis

Bursting Setup – MCX CrudeOil

This is a live breakout example of MCX CrudeOil. The breakout should come into effect after breaking the Lower Price Wall of The Bursting Setup, a breakout technique developed by The Financial Doctors.

This is the live example for MCX CrudeOil-

MCX CrudeOil - 60 Minutes

If it breaks the Lower Price Wall of 2107, it should come into breakout mode. Prices are consolidating. Price Pattern is acceptable. Volume Pattern is acceptable.

Also an important point to consider is, a Strong Support Area 2070 – 2090 is just under this level. So this area may act as a reverse point for MCX CrudeOil. Lets see what happens.

For Intraday & Positional Tutorial Calls and Detailed Technical Support, Ask The Financial Doctor.