Junkers 87
kiwifarms.net
- Joined
- Aug 7, 2024
I'll share a trading setup with you guys. I like to use 20EMA + 65EMA on my charts, specifically on the 15 min, 1 hour, or 4 hour time frames. If the 20EMA on the timeframe of your choosing crosses above the 65EMA, that's an entry point to go long on shares or calls. The inverse is the 20EMA going below the 65EMA, in which case you'd exit if you're long, or use it as an entry to go short or buy puts.
I'll use this SQ chart in think or swim as an example.
In this chart, the 20EMA is a green, squiggly line, while the 65EMA is the red one. Towards the upper left side, the 20EMA went below the 65EMA, which marks our bearish signal. Hypothetically, if you were to go short or buy puts at soon as the crossover happens, then exit once the 20EMA crosses above the 65, then the breadth of your short would be something between $67.57 and $61.48.
Of course you don't have to wait for the inverse of whatever signal you used to enter, in order to exit. There are three other exit points here. These are marked on the bottom of the chart, and are based on RSI. Oscillating indicators such as RSI must cool down at some point, and the longer you hold while overbought or oversold, the more risk you're accumulating. Another way of deciding when to exit could be when the price retests either the 20 or 65EMA.
When it comes to picking a time frame, the signals on the 4 hour chart will occur much later than it would on say, the 15 minute chart, but they will be more consistent. The 15 minute chart will give you quicker entries and exits, but you will also be subject to false signals as well so it's less consistent.
Also, while I do my trading on Robinhood, my charting is done on think or swim. This is because Robinhood doesn't offer a 4 hour chart. If you want to try this system but are on Robinhood, you may need to test it on a shorter time frame like the 1 hour chart. You could also try using something like Trading View, I think.
One of the most important things you can do is to find a time frame and trading style that suits you, specifically. I know people who swing trade, who absolutely cannot deal with the intraday movements that come with day trading and vice-versa, I know day traders who refuse to hold anything overnight because they don't want to deal with the stress of seeing a winning position turn against them.
"If you are a short-term trader, recognize that selling a stock for a quick profit only to watch it go on to double in price is of no real concern to you. You operate in a particular zone of a stock’s price continuum, and someone else may operate in a totally different area of the curve. The key is to focus on a particular style, which means sacrificing other styles." —Mark Minervini (I have no idea who this guy is but someone shared his quote with me and I think it's true).
I'll use this SQ chart in think or swim as an example.
In this chart, the 20EMA is a green, squiggly line, while the 65EMA is the red one. Towards the upper left side, the 20EMA went below the 65EMA, which marks our bearish signal. Hypothetically, if you were to go short or buy puts at soon as the crossover happens, then exit once the 20EMA crosses above the 65, then the breadth of your short would be something between $67.57 and $61.48.
Of course you don't have to wait for the inverse of whatever signal you used to enter, in order to exit. There are three other exit points here. These are marked on the bottom of the chart, and are based on RSI. Oscillating indicators such as RSI must cool down at some point, and the longer you hold while overbought or oversold, the more risk you're accumulating. Another way of deciding when to exit could be when the price retests either the 20 or 65EMA.
When it comes to picking a time frame, the signals on the 4 hour chart will occur much later than it would on say, the 15 minute chart, but they will be more consistent. The 15 minute chart will give you quicker entries and exits, but you will also be subject to false signals as well so it's less consistent.
Also, while I do my trading on Robinhood, my charting is done on think or swim. This is because Robinhood doesn't offer a 4 hour chart. If you want to try this system but are on Robinhood, you may need to test it on a shorter time frame like the 1 hour chart. You could also try using something like Trading View, I think.
Good job on your gamble.
One of the most important things you can do is to find a time frame and trading style that suits you, specifically. I know people who swing trade, who absolutely cannot deal with the intraday movements that come with day trading and vice-versa, I know day traders who refuse to hold anything overnight because they don't want to deal with the stress of seeing a winning position turn against them.
"If you are a short-term trader, recognize that selling a stock for a quick profit only to watch it go on to double in price is of no real concern to you. You operate in a particular zone of a stock’s price continuum, and someone else may operate in a totally different area of the curve. The key is to focus on a particular style, which means sacrificing other styles." —Mark Minervini (I have no idea who this guy is but someone shared his quote with me and I think it's true).
