My Strategies

Superposition Bands Indicator

Click here to learn more about my Superposition Bands Indicator. Below is a summary of the few strategies you can employ using this trading indicator I created.

1. Touch & Go → When price increases and touches the upper band and then reverses direction, this is a signal to enter a short position. When prices decreases and touches the lower band and then reverses direction, this is a signal to enter a long position.
2. Thread the Needle → When price is above the upper band and begins to decrease, crossing the upper band, this is a signal to enter a short position. When price is below the lower band and begins to increase, crossing the lower band, this is a signal to enter a long position.
3. Ride the Margins → When price is above the upper band and continues an upward trajectory barely touching the band, if the RSI indicator is within 30-70 and the market is trending higher, this is a signal to enter a long position. When price is below the lower band and continues a downward trajectory barely touching the band, if the RSI indicator is within 30-70 and the market is trending lower, this is a signal to enter a short position.

It should be noted that this strategy works best when:

• You trade with the market trend
• You take into account and fundamental reasons the stock is trending a certain direction (like news)
• You trade within the 30-70 RSI range
• You ignore the first and last 15 minutes of the trading day

Other Strategies

John Carter’s “The Squeeze”

Lance Breitstein’s “Capitulation Play”

Look for strong stocks that are flushing out fast from a panic

OR

Look for weak stocks that are selling off fast (a smooth waterfall, not just zig zags)

The stocks you trade are important, to have a competitive edge in very specific tickers in very specific situations.

1. Check for the following:
1. Social Sentiment
2. Scale of the move (when it drastically drops)
2. If you’re looking at an intra-day chart and you’re seeing a continual sell off occur, look for a break of trend, which would be as follows:
1. Could be a break above prior day’s highs
3. Set a trailing stop of prior bar’s lows, but you place a buy after the prior bar’s highs.

Parabolic Reversal

• Based on overbought and oversold conditions
• Extended move from the 9 moving average on the 5 minute chart
• Three consecutive bars with no pull back that goes up above the breakout area
• The daily ATR must be hit — the daily average true range
• Weakness based on pattern and price action

Pre-Market Gappers

• Proper pre-market stock selection
• Vol %
• Avg. Daily Volume
• Gap %
• Results in higher win rate because they make higher moves off the momentum
• Average daily volume = 1M (then we scale down the more skilled we get)
• Trigger volume
• Volume percentage = The percentage of average daily volume that is trading before the market opens → Minimum of 10%, up to 50% (the higher the better)
• 6am MDT is when institutional traders place their trades
• Gap percentage = The amount of stock trading in the market from the market’s previous day close (Greater than 5%, the higher the better)
• Aim for 1 unit of risk for 5 units of reward
• Even if you’re right 30% of the time, you’ll be profitable over the week

Mean-Reverting Strategy

A mean-reverting strategy is one that attempts to exploit the fact that a long-term mean on a "price series" (such as the spread between two correlated assets) exists and that short term deviations from this mean will eventually revert.

Momentum Strategy

A momentum strategy attempts to exploit both investor psychology and big fund structure by "hitching a ride" on a market trend, which can gather momentum in one direction, and follow the trend until it reverses.