Thursday, May 30, 2019

Short Trigger Point Strategy Setups - Daily Chart and 5 minute charts

Short Trigger Trading Setups: The day before identify bearish Daily Charts, the intraday trigger point and monitor the next day for a setup on the 5 minute charts. Before entering a trade identify your stop point and exit point. If the trigger point is the S1 pivot the exit goal could be sell half at S2 pivot and exit remaining end of day. I place my stop at a price level under the 5 minute 20ema.

An Explanation of the daily chart, intraday setups and entry setups are posted on the website under Stock Strategy. Test out the strategy on a stock simulator.

CTSH:  Daily Setup: Pullback    Intraday Setup: Breakout    Entry Type: Breakout
CTSH opens with a break of the prior 2 day low (yellow line) with the tight 9ema support after consolidating at the prior day close. Enter at the break with a stop above the 5 minute 20ema or High of Day. Stop is .40 with a goal of 1.20 or sell at end of day.

ADNT Daily Setup: Pullback    Intraday Setup: Open over S1 trigger pullback to trigger & 9ema     Entry Type: Pullback entry the low of 2 candles prior
ADNT opens ender the previous day low and pulls back to the 5 minute 9/20ema. Do not chase, pass on the trade or patiently wait for pullback to the entry area (yellow line) and rising 5 minute 9/20ema. Wait for a candle setup off the entry area. Stop High of the day .15 risk - goal .45 or sell at end of day.

IRM:  Daily Setup: Breakdown    Intraday Setup: Breakdown     Entry Type: Breakdown
Trading in a tight consolidation on the daily chart and at the previous day close. Intraday setup is to enter on break of low with 5 minute  9/20ema support. Stop placed above the 5 minute 20ema. After 30 minutes of tight trading IRM breaks down. Risk of .20 with a goal of .40-.60 or sell at end of day.

AMD: Daily Setup: Continuation   Intraday Setup: Breakdown or pullback to trigger     Entry Type: Breakout or pullback entry at the low of prior 2 day
You will miss trades, this was on my list at the open but had several alerts and missed the breakdown entry, but would set up again latter on the day. The intraday Setup Pullback off the S1 pivot into prior day low and 5 minute 9/20ema.: AMD proceeds to trade through S2 pivot where you can exit or sell half (white line). Stop above the 5 minute 20ema with a .30 risk and a goal of .60-.90 or sell at end of day.

HFC: Daily Setup: Green to Red    Intraday Setup: Open below S1 trigger     Entry Type: Consolidation breakdown
Intraday Setup at the S1 pivot and 5 minute 9/20ema Support. HFC trades in a tight consolidation above the break area. Enter at break of the low the day (low of the base) and 5 minute 9/20ema support. Stop placed above the 5 minute 20ema. Risk of .30 with a goal of .60 or sell at end of day.
Charts Key:
  • Daily Charts: Daily 9 (blue dotted) , 20 (red), 50 (orange), 200 (dark red)- ema's
  • Intraday Charts: 9 (blue dotted) , 20 (red), 60 (orange) s: - ema's
  • Intraday Pivots: Green R1, Dark Green R2, Red R1, Dark Red R2 
  • Yellow Lines and Grey Boxes: entry areas to target 
  • Red Lines unfilled gaps


* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.

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Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE