The Halloween atmosphere is too intense to focus on trading, so I am writing a SOP for chasing rallies. Practice Zen meditation and martial arts, the ambitions of youth are not expressed worries. Moreover, I am taking this opportunity to learn English!
In the moo determine if it is a big fish jumping out, that is, excluding the first and last days, at least 3 days with 5% and 4 days with 8% upward time space are worth taking action. The following parameters are set: RSI (6, 14, 24), MACD (5, 34, 5). Using the arm Oct. 4th rally as an exampleDay0: Add 35%-45% position for self-sufficient standby position, based on the premise that the daily K line is below the weekly/monthly/quarterly line (rare for the quarterly line, monthly line is sufficient, weekly line may not be worth operating)? Are the upper and lower bollinger bands converging? Has the MACD death cross already occurred? Is the weekly line crossing below the bi-weekly line (and EMA bi-weekly line) and moving farther apart? Are the EMA bi-weekly lines crossing below the bi-weekly line and moving farther apart? Day1: Add 45%-55% position based on the premise that the daily K line reverses to an upward trend post-market assessment: Is the RSI already tilting upwards? Is the angle of the KDJ fast line decreasing compared to yesterday? Has the ARBR transitioned from a downward angle to an upward angle and is the blue BR line above and rising more aggressively?Day2: Add 55%-65% position based on the premise: Is the RSI continuing to tilt upwards? Is the KDJ fast line clearly transitioning from a downward angle to an upward angle? Is the EMV fast line decreasing in angle? Is the MACD line difference smaller than the previous day? Is the daily K line approaching (or crossing) the monthly line?Day3-Day4: Add 65-75-85% position based on the premise: Have the bollinger bands completed from convergence to expansion? Have the RSI lines intersected (preferably near 50)? Has the weekly line crossed above the bi-weekly line (and EMA bi-weekly line)? Are the RSI lines still rising and moving farther apart? What is the value of the RSI fast line? Has the KDJ completed the three-line intersection? Is there a golden cross in the MACD? Is the cross point closer to the surface (the closer the better)? Day5: RSI = 60, position should not exceed 65%. Premise: Is the blue BR line of ARBR still rising and moving farther apart? Has the EMA10 crossed above the bi-weekly line? Are the RSI lines still rising and moving farther apart? Are the weekly line, EMA10, bi-weekly line, monthly line still rising and in sequential order and moving farther apart? Take profits when you see them, do not blindly chase higher prices.Day6: Position should not exceed 50%, with the premise that the RSI fast line is at a risk point of 65. The daily K line breaks through the upper track. Final warning, red alert!Final climax determination: Based on the RSI warning, when the bollinger band width/upper track = 20%, that is the boundary line, do you chase or not chase a 12% win rate (considering true and false breakthroughs, also refer to the vwap algo closing price). Another determining factor, if the closing price exceeds the monthly line by 10%, it must be time to take profits. The majority must return to a safe position of 45-50% now, remember not to seek to win everything, at most experimentally return to 52.5% to test sufficiency! Reduce the position to 45% immediately if the post-market trend looks bad.In summary, remember that Zhuge Liang's clever strategy is no match for a short life, while Sima Yi's simple strategy prevails despite a long life. To seek long-lasting military success, do not aim to become a god in one battle!When chasing highs, it is important to pay attention to the proportion of the Bollinger Bands width.https://youtu.be/oqMtFqJDVVM?si=s51T9w3PND66_kL5Be cautious when chasing highs, consider adding 10% to the monthly line as a warning line, from John Lu's course.
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