Hello to everybody, today I will make an introduction to my trading strategy and how i find stocks for my watchlist, so let’s start .
Trading intraday I will folow this simple rules :
- Stock selection :
- Stock have a clear move, with higher highs(HH) and higher lows(HL) for uptrend and lower highs(LH) and lower lows(LH) for downtrend, on the daily chart.
- If the market goes up continuing to make HH and HL , i will give priority to strong stocks on the way up as long as they continue to make HH, HL and vice versa for market going down.
- Always give priority market to leaders.
Every monday I will post a list of stocks that I follow.
Example of strong stock :
Example of weak stock :
- Entry point :
- Always trade versus a level.
- Stock is showing relative strength/weakness.
- Trade continuation setups only if stock is at all time hi. (long in bullish market)
- Always buy/short from a pullin/pullback.
For a list of patterns that I trade you can visit the http://chartpattern.com/
The way I trade and my approach to uptrending markets differs greatly from downtrending ones. Markets go down a lot quicker then they go up. I am a lot more aggressive when playing the downside (more size intraday) and more patient (buying more pullins, adding as stocks come out of bullish patterns) when buying stocks in an uptrending market.