rlohmeyer
Active member
This is discretionary trading. But uses specific indicators. It is clearly based on Price Action/Volume Profile Action...my primary tool, with other S/R.
The trade is setup when the 1 minute price action (or 2) reaches the 5 Day EMA after at least several days of not trading near it. You are looking for 1 successful test and holding of the EMA with price then moving away. The 1 minute (which I prefer) can establish through price action whether the EMA is likely to hold as S/R and I will often venture a low risk scalp on the first test if price action justifies it. A limit can be placed with the number of shares you are trading with a $.50 or $1 stop. The risk/reward scenario is further helped if the the EMA is near a whole number level and/or another specifically significant level, such as the day's low, etc.
Once the trade is on, the first level target is the first whole number price level. The chart below illustrates this. The actual trades I took are not on the chart, as I had about 10 scalps during this period.
The second indicator that comes into play that I am putting up a link for is a Signals Indicator I have recently started to use that combines a Bollinger Band Squeeze with Pullback Signals that uses the Flag Indicator Code modified. The image for the settings is below.
The Pullback Signals indicator will often come into play indicating a second potential second test of the EMA. If a 3rd Test occurs, still play it when you get confirmation that any push beyond the EMA by price is often to pick up Stops before resolving in the direction of the original other tests. In this case, today (6/1/22) the 3rd successful test marked the beginning of a nice trend to test the 410 level and the VWAP.
Regards,
Bob
PS: This is not a recommendation to trade. Do your own due diligence.
Signals indicator settings:
Code for EMA Ribbon set to day aggregation to be used on 1 minute, 5 minute, etc. http://tos.mx/mVABybF
Code for Squeeze and Pullback Signals http://tos.mx/NDySSi8
The trade is setup when the 1 minute price action (or 2) reaches the 5 Day EMA after at least several days of not trading near it. You are looking for 1 successful test and holding of the EMA with price then moving away. The 1 minute (which I prefer) can establish through price action whether the EMA is likely to hold as S/R and I will often venture a low risk scalp on the first test if price action justifies it. A limit can be placed with the number of shares you are trading with a $.50 or $1 stop. The risk/reward scenario is further helped if the the EMA is near a whole number level and/or another specifically significant level, such as the day's low, etc.
Once the trade is on, the first level target is the first whole number price level. The chart below illustrates this. The actual trades I took are not on the chart, as I had about 10 scalps during this period.
The second indicator that comes into play that I am putting up a link for is a Signals Indicator I have recently started to use that combines a Bollinger Band Squeeze with Pullback Signals that uses the Flag Indicator Code modified. The image for the settings is below.
The Pullback Signals indicator will often come into play indicating a second potential second test of the EMA. If a 3rd Test occurs, still play it when you get confirmation that any push beyond the EMA by price is often to pick up Stops before resolving in the direction of the original other tests. In this case, today (6/1/22) the 3rd successful test marked the beginning of a nice trend to test the 410 level and the VWAP.
Regards,
Bob
PS: This is not a recommendation to trade. Do your own due diligence.
Signals indicator settings:
Code for EMA Ribbon set to day aggregation to be used on 1 minute, 5 minute, etc. http://tos.mx/mVABybF
Code for Squeeze and Pullback Signals http://tos.mx/NDySSi8
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