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    S&P 500 20EMA: Long Trades Bias S&P 500 20EMA: Short Trades Bias

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    S&P 500 20EMA: Long Trades Bias S&P 500 20EMA: Short Trades Bias

    Uploaded by

    dexter
    662 views2 pages

    Original Title

    Lesson 8.3-Quick-Reference-Guide

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    662 views2 pages

    S&P 500 20EMA: Long Trades Bias S&P 500 20EMA: Short Trades Bias

    Uploaded by

    dexter

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    of 2

    Bounce Strategy

    Market Bullish or Bearish?


    S&P 500 > 20EMA: Long trades Bias
    S&P 500 < 20EMA: Short Trades Bias

    Screen for 18 Bounce Long, 50 Bounce Long, Screen for 18 Bounce short, 50 Bounce short,
    100 Bounce Long 100 Bounce short

    Entry & Exit Rules for Bounce Long Entry Rules for Bounce Short
    • 2 candle/ single candle reversal pattern with confirmation • 2 candle/ single candle reversal pattern with confirmation
    candle candle
    • Macd (50, 100, 9) bullish or not crossed bearish within 5 • Macd (50, 100, 9) bearish or not crossed bullish within 5
    candles candles
    • Stochastics (5,3,3) below 30 • Stochastics (5,3,3) above 70
    • Price is not below counter trend line resistance • Price is not above counter trend line rsupport
    • Uptrend wave pattern • Downtrend wave pattern
    • Reversal candle makes higher low than previous • Reversal candle makes lower high than previous
    swing low or… swing high or…
    • EMA has been tested previously • EMA has been tested previously
    • Note: for 18EMA long, MACD (50, 100, 9) and MACD (18, • Note: for 18EMA Short, MACD (50, 100, 9) and MACD (18,
    50, 9) must be bullish 50, 9) must be bearish
    • High Probability: Reversal candle at Fibonacci 61.8% or 50% • High Probability: Reversal candle at Fibonacci 61.8% or 50%
    and/or at strong support and/or at strong Resistance
    • High Momentum stocks • Low Momentum stocks
    • Sector and/or industry bullish/ uptrend • Sector and/or industry bearish/downtrend
    • Relative strength indicator sloping up • Relative strength indicator sloping down
    • Avg Volume > 150,000 • Avg Volume > 150,000
    Bounce Strategy

    Valid Candle Reversal patterns for Long


    • Check that company is not announcing earnings
    over the next 7 days

    Portfolio Management
    • Avoid taking more than 2 trades a day
    • Risk no more than 10% of your portfolio

    Exit Rules
    • Take Profit 2.5R above Entry
    • Stop Loss 1R below Entry
    • Shift SL to Entry once price moves 1R in your
    favour
    Valid Candle Reversal patterns for short • Exit before earnings announcement

    Position Sizing
    Maintain a consistent risk per trade of 1%-3%

    Copyright © 2017 Adam Khoo


    Learning technologies Group Pte Ltd

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