Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Copper/Gold Ratio Would Change the Macro - 21st Oct 20
Are We Entering Stagflation That Will Boost Gold Price - 21st Oct 20
Crude Oil Price Stalls In Resistance Zone - 21st Oct 20
High-Profile Billionaire Gives Urgent Message to Stock Investors - 21st Oct 20
What's it Like to be a Budgie - Unique in a Cage 4K VR 360 - 21st Oct 20
Auto Trading: A Beginner Guide to Automation in Forex - 21st Oct 20
Gold Price Trend Forecast into 2021, Is Intel Dying?, Can Trump Win 2020? - 20th Oct 20
Gold Asks Where Is The Inflation - 20th Oct 20
Last Chance for this FREE Online Trading Course Worth $129 value - 20th Oct 20
More Short-term Stock Market Weakness Ahead - 20th Oct 20
Dell S3220DGF 32 Inch Curved Gaming Monitor Unboxing and Stand Assembly and Range of Movement - 20th Oct 20
Best Retail POS Software In Australia - 20th Oct 20
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20
AMD is KILLING Intel as Ryzen Zen 3 Takes Gaming Crown, AMD Set to Achieve CPU Market Dominance - 13th Oct 20
Amazon Prime Day Real or Fake Sales to Get Rid of Dead Stock? - 13th Oct 20
Stock Market Short-term Top Expected - 13th Oct 20
Fun Stuff to Do with a Budgie or Parakeet, a Child's Best Pet Bird Friend - 13th Oct 20
Who Will Win the Race to Open a Casino in Japan? - 13th Oct 20
Fear Grips Stock Market Short-Sellers -- What to Make of It - 12th Oct 20
For Some Remote Workers, It Pays to Stay Home… If Home Stays Local - 12th Oct 20
A Big Move In Silver: Watch The Currency Markets - 12th Oct 20
Precious Metals and Commodities Comprehensive - 11th Oct 20
The Election Does Not Matter, Stick With Stock Winners Like Clean Energy - 11th Oct 20
Gold Stocks Are Cheap, But Not for Long - 11th Oct 20
Gold Miners Ready to Fall Further - 10th Oct 29
What Happens When the Stumble-Through Economy Stalls - 10th Oct 29
This Is What The Stock Market Is Saying About Trump’s Re-Election - 10th Oct 29
Here Is Everything You Must Know About Insolvency - 10th Oct 29
Sheffield Coronavirus Warning - UK Heading for Higher Covid-19 Infections than April Peak! - 10th Oct 29
Q2 Was Disastrous. But What’s Next for the US Economy – and Gold? - 9th Oct 20
Q4 Market Forecast: How to Invest in a World Awash in Debt - 9th Oct 20
A complete paradigm shift will make gold the generational trade - 9th Oct 20
Why You Should Look for Stocks Climbing Out of a “Big Base” - 9th Oct 20
UK Coronavirus Pandemic Wave 2 - Daily Covid-19 Positive Test Cases Forecast - 9th Oct 20
Ryzen ZEN 3: The Final Nail in Intel's Coffin! Cinebench Scores 5300x, 5600x, 5800x, 5900x 5950x - 9th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Market Day Trading Strategies and Brief 20th May 2017

Stock-Markets / Stock Market 2017 May 21, 2017 - 05:44 AM GMT

By: Christopher_Quigley

Stock-Markets

Technically Speaking

1.         Technical Summary:

Short Term Trend:                            Consolidating.

Medium Term Trend:                      Bullish.

Long Term Trend:                            Bullish.

28 Day Stochastics:                         Overbought.


14 Day Stochastics:                         Nearing Oversold.

VIX:                                                    Breakout From Bottom Of Range.

McC. Oscillator:                               Moving To The Bottom Of Range.

A/D Line:                                           Bullish.

Chart: Dow Jones 19th May  2017. Timeframe: Daily.

The market is now consolidating with a bearish tone. If the 100 DMA (Daily Moving Average) price point is broken (20,510) the next significant support level is the 20,000 mark.

Of all the main USA indices the Dow Transports is the weakest. If it breaks its 200 DMA we will have significant Dow Theory Divergence in play. Divergence tells us there is above average market risk. Thus if the FED raises interest rates next June, as expected, and indicates any sense of hawkishness the Trump rally could begin to come under severe strain, particularly if his tax reform policy is stalled.

Day Trading Strategies.

As part of my trading system I have 7 day trading strategies that I teach. In the March 16th Brief I explained the Straddle Trade. Today I list all the other 6 strategies, with actual examples of trades in action, courtesy of the IG Markets Spread Betting Platform (see note below). From experience I have found the 3 minute time frame to be most effective for day trading, thus all attached charts have this time setting.

1. Arbitrage Trade

The Arbitrage Trade seeks to activate trades that have a high probability of success by utilizing early bearish or bullish movement on the Wall St DBT to trade the German DAX or vice versa.

Chart: Wall Street Daily Funded Bet/ German Dax Daily Funded Bet: 26th. Nov 2016: Time Frame 3 Mins.

2. Momentum Trade.

With the momentum strategy one aims to enter a strong trend and remain in the position as long as technicals are supportive.

Chart: Wall Street DFB: 3rd. Jan 2017: Time Frame  3 Mins.

3. Swing/Continuation Pattern Trade.

The objective of this strategy is to identify high probability swing or continuation pattern trades.

A. Flag Formation.

 The flag pattern forms what looks like a rectangle. The rectangle is formed by two parallel trend lines that act as support and resistance for the price until the price breaks out. In general, the flag will not be perfectly flat but will have its trend lines sloping.

Chart: Wall Street DFB: 21st Oct 2017: Time Frame 3 Mins.

B. Descending Triangle Formation.

The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. No one can tell for sure how long it will last. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution.

Chart: Wall Street DFB: 13th Jan 2017: Time Frame 3 Mins.

 C. Ascending Triangle Formation.

As above but the ascending triangle is a bullish formation that usually forms during an upward trend as a continuation pattern.

 Chart: Wall Street DFB: 10th Jan 2017:Time Frame 3 Mins.

 

4. Bollinger Band Trade

The Bollinger Band Squeeze occurs when volatility falls to low levels and the Bollinger Bands narrow. Periods of low volatility are often followed by periods of high volatility. Therefore, a volatility contraction or narrowing of the bands can foreshadow a significant advance or decline. Once the squeeze play is on, a subsequent band break signals the start of a new move.

Chart: Wall Street DFB: 20th March 2017: Time Frame 3 Mins.

 

5. Channel/Range Trade.

In the context of technical analysis, a channel is defined as the area between two parallel lines and is often taken as a measure of a trading range. The upper trend line connects price peaks (highs) or closes, and the lower trend line connects lows or closes.

 

Chart: Channel Trade: 21st Oct. 2016: Time Frame 3 Mins.

 

Chart: Range Trade: Wall Street: 29th Dec 2016: Time Frame 3 Mins.

6. Candlestick Pattern Trades

Candlestick pattern trades seek to “scalp” profits through trading highly recognizable candlestick formats.

A. Formation: Hammer.

The hammer pattern normally appears when a short term down trend is about to change. The longer the length of the taper the better.

Chart: German DAX: 5th. Jan 2017: Time Frame 3 Mins.

B. Formation: Bullish Engulfing.

With the bullish engulfing formation pattern the longer the bullish candle the higher the probability that the BUY move it indicates will persist.

 Chart: Wall Street DFB: 12th Dec 2016.

C. Formation: Bearish Engulfing.

The bearish engulfing formation pattern indicates the higher the probability that a SELL price movement is in the ascendance.

Chart German DAX: 6th Feb 2017: Time Frame 3 Mins.

 

D. Formation: Shooting Star.

The shooting star pattern normally appears when a short term up-trend is about to change. The longer the length of the taper the better.

Chart: Wall Street DFB: 26th. Jan 2017: Time Frame 3 Mins.

E. Formation: Doji.

The Doji pattern normally appears when there is complete indecision as to future trend. The next significant candle that appears after the Doji is used to anticipate trend.

Chart: DAX DFB: 21st Nov 2016: Time Frame 3 Mins.

F. Formation: Spinning Top.

Like the Hammer the Spinning Top pattern normally appears when a short term down trend is about to change. The longer the length of the taper the better

Chart: Wall Street DFB: 11th April 2107: Time Frame 3 Mins.

Note:

The Wall Street Daily Funded Bet (DFB) is the IG Markets instrument for trading the Dow Jones Industrials Index.

The German DAX Daily Funded Bet (DFB) is the IG Markets instrument for trading the German DAX Index.

Charts Courtesy of Worden Bros. and  IG Markets.Co.UK.

Christopher Quiqley

B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin, Ireland. He holds a Bachelor Degree in Accounting and Management from Trinity College Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the stock market in 1989 in Belmont, California where he lived for 6 years. He has developed the Wealthbuilder investment and trading course over the last two decades as a result of research, study and experience. This system marries fundamental analysis with technical analysis and focuses on momentum, value and pension strategies.

Since 2007 Mr. Quigley has written over 80 articles which have been published on popular web   sites based in California, New York, London and Dublin.

Mr. Quigley is now lives in Dublin, Ireland and Tampa Bay, Florida.

© 2017 Copyright Christopher M. Quigley - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules