Trade Setup

Consolidating some of the trade setup here.

bull flags,

You want to find a confluence of support at a key moving average (usually the 20 period EMA) and also a Fibonacci retracement, usually the 50% retracement. This will increase your odds of a successful trade, and also allow you to take a potentially larger position as a result of a tighter stop.

RSI system - Bill Cara (mostly for extreme case)
FAs most of you know, my simple RSI system shows Accumulation and Distribution Zones when the RSI-7 is below the 30 line for the Monthly, Weekly and Daily data series and above 70 for the same. But a Buy Alert for a short-term oriented trader is when the Daily RSI-7 pops back up over 30, if confirmed by similar RSI turnabouts in similar stocks. For an intermediate-term oriented trader, there should be a crossing of the 30 line in both Daily and Weekly RSI-7 data, and for a long-term oriented trader, the crossing of the 30 line should happen in the Daily, Weekly and Monthly.

Exuberance trade ( shall name it this way)

1. For counters going panic buy or sell with a set of criteria belows:

- traded out of bollingerband 20 to increase the odds of exuberance

- chart show breakout/down without consolidation especially if early morning trade

- traded above a round figure resistance (for e.g. 2.60) or depth showing mini sellers/buyers for breakout/down respectively.

2. Short/Buy on countertrend with a stop only 2 bids

3. Buyback at depth showing nobody buying or selling

This is a high probabilities trade, risk to reward is thin, 1 to 1. If i have time, i attached a chart to show how it works