To become a better day-trader!
Recently, I'm learning day trading strategies. And I want to share some points with mooers, also want masters to give me some advice.![]()
@Dadacai @GratefulPanda @HopeAlways @Mars Mooo @Syuee @Mcsnacks H Tupack
The most important rules are Granville's 8 Rules, which principle is to use the resistance and support from MA to find out the best entry position points for trend trading investments.![]()
1. Four buying signals
Breakout Buy - It is a buying signal when the price rises from the bottom and breaks the MA of tendency level.
Call-back Buy - When the price goes beyond the MA, and the call-back does not fall below the MA can be considered as a buying signal.
Fake Breakout Buy - The price falls below the MA. However, if the MA is still rising and the short-term price goes back upon the MA, it is a buying signal.
Off-buy - When the price keeps falling and accumulates specific declines, and it begins to deviate from the moving average, it is a buying signal.
$AMC Entertainment (AMC.US)$ $Apple (AAPL.US)$ $NVIDIA (NVDA.US)$
$AMC Entertainment (AMC.US)$ $Apple (AAPL.US)$ $NVIDIA (NVDA.US)$
2. Four selling signals
Breakout Sell - It is a selling signal when the price falls from above and breaks the MA of tendency level.
Bounce Sell - When the price goes below the MA and rebounds but does not exceed the MA, it is a selling signal.
Fake Breakout Sell - The price rises and breaks the MA. However, the MA is still falling, and the short-term price falls below the MA. It is a selling signal.
Off-sell - When the price keeps rising and accumulates specific increases and starts deviating from the MA, it is a selling signal.
$RLX Technology (RLX.US)$ $Alibaba (BABA.US)$ $BABA-W (09988.HK)$
$RLX Technology (RLX.US)$ $Alibaba (BABA.US)$ $BABA-W (09988.HK)$
I found that the intraday market rebounded quickly when the trending fell sharply. If you buy at a low point, you can significantly profit from the rebound. If you make an excellent stop-loss, the profit-loss ratio should be good. I will back-test $Tesla (TSLA.US)$ 's intraday trends to see its effectiveness. Here I use the five-minute bar for trading, and the corresponding moving average is VWAP.
We can see that $Tesla (TSLA.US)$ 's historical trend is in line with falling below the moving average at a rapid rate and then quickly rebounding back to the MA. It can be found that at the relatively lowest point, the needle-shaped k-line has been released and closed, and the angle of the downward movement below the moving average is enormous at the beginning. It looks very effective!![]()
But in actual combat, I don't know the success rate, so you still need to set a stop loss just in case. The buying point of this kind of disk shape is when it falls below the intraday moving average. After a period of rapid decline at a large angle, a heavy volume is accompanied by a needle-shaped k-line is the buying point, and the selling point is to rebound to the moving average. Nearby, the stop loss point is the lowest buying point k-line.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Investing 101 : Ma is good for spotting overall trend and dynamic support. But breaking above and below to initiate a buy or sell you might get trapped more often than not. You need to pair it with other indicators. One that I use is volume analysis. Volume is to show whether breakout is real or false. 2nd is to spot whether a retrace is a pullback or a short term trend reversal.
Investing 101 : Volume is the most important indicator for trading as it can't be manipulated and it shows whether smart money in moving in the direction you are planning to move. If you go opposite you get trapped
NANA123 OP Investing 101 : Thanks for your helpful advice![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Questionable Invts : With amount cash these investment firms have they're capable of flipping you chart upside down. If they want stop forward movement they can. You can spend all time crafting your plan. But like great man once side everybody got plan till get punched in face.
Evelynne : thanks for sharing,I learned the Granville's 8 Rules
NANA123 OP Questionable Invts : Plan your trade and trade your plan
NANA123 OP Evelynne :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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protraderx : I have been day trading for close to 3 years now. It is high reward high risk but the skill you gained even if you lose a lot of money from day trading 1min to 15min chart is invaluable and comes in handy for timing entry for overnight swing trade and longer term trade. If you are day trading, you need to move away from indicators as it will cloud our judgement. EMA is used only for reference but as will all MA or EMA, they are way too laggy. Infact they are probably the most laggy indicators. Spending thousand of hours of screen time is required to understand the psychology and behaviour of the market. Be careful of dreaded algo.
NoCanDoPDX : idk, it's easy to talk about signals on a chart where you can see where the price went because the chart shows a period that is in the past. You can circle every point where the price increased rapidly and call it what you want in combination with whatever indicator you feel like but in reality and in real time when money is on the line, the charts really don't cooperate with those rules and you can't identify the patterns as they are happening because a pattern can only be confirmed as you look back on the price movement, not so much while you are waiting for each candlestick to appear, one after the next. At times you might go hey, this looks like the same thing that happened the other day, and volume looks the same, and the averages are in the right places, and the Bollinger bands are within the same parameters, hot dayum I'm gonna put five bills on this trade instead of one and I'm gonna double it within the next few candlesticks, so you go for it, and what do you know, it didn't go your way pal, you didn't realize that today is Friday and your last trade was Monday, and yep that explains everything, the rules aren't the same on those days. And you can make sure you're doing it on the same day of the week next time and chances are, you'll learn that it also has to be the same time of the month or some shit, or the price point wasn't the same. Or you explain it away by the sector just doing poorly. Or your gma turned 69. You can keep making these rules as you go broke but if there were rules, then don't you think someone somewhere would be able to follow them to a t with almost a flawless record. Every trade profitable? Doesn't work that way.
NANA123 OP protraderx : Thanks so much for your diligent suggestion, I will remember in my heart and spend more time to screen time![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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