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Saturday, September 6, 2014

Day Trading Bullish and Bearish crossover in stock: AAPL, SPY, UVXY, VXX, CONN, AREX, KERX

Day trading is risky business and you stand to lose everything if you fail. You must accept this fact before you start day trading.

Some essential aspects include:
Where to trade
When to trade
What instruments to trade
What is your trading strategy and how to execute it
How much to risk per trade
When to reduce trade size when in doubt 
Broker, internet, computer, and what happens when they fail to work
The trading plan is a work-in-progress. Keep refining it and add to it. 

Remember Trade with your eyes and Scale in your position and never fight a trend.

In this article, I will try to explain how to trade crossover using simple chart.

AAPL Day Trade Chart Set Up

The above chart is divided into 3 section

Price Chart
Price Chart
In this chart we look at the blue line which is Big R, and which indicates buying or selling pressure. If the stock price crosses the blue line, there will be buying pressure and the stock is more likely to go higher. Same way if the stock price crosses blue line below, there will be selling pressure. Next one to check is the green and red dots, it indicates trend. Green dot is for up trend and red dot is for downtrend.

Indicator 1

Indicator 1
In this chart we concentrate on green line. If the green line crosses red line below then the trend is down. Same way if the green line crosses red line then there is change in the trend

Indicator 2

This is the most important indicator, it tells when to Buy, Sell or Hold. The best entry is always the crossover point with stop loss. If the green line crosses red line above, then the stock price is likely to go higher and if the green line crosses red line down then the stock price is likely to drop.

SPY Chart:
SPY Chart

UVXY Chart:
UVXY Chart
VXX Chart:

VXX Chart
CONN Chart:
Conn Chart
AREX Chart:

KERX Chart:

Stock market is unpredictable but you can always minimize some common mistake. Join us to learn more.

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