Russell Rx – 9.04.14

Thursday, September 4 – Trading Plan Prescription


E-Manual now available!!

Live Trading Room information available here @ Marketfy

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Daily VLOG Recap (NQ/YM/ES/TF/QQQ/DIA/SPY/IWM):

Available to Marketfy Members


RUT/Russell Signs and Symptoms

2014-09-04-RUT-TOS_CHARTS

Don’t get your pants in a frenzy. Price action holding above the 50 day moving average and most recent highs. Low of the day tapping the 8ma. Daily trend Heikin Ashi candles upside last 19 days with 5/34 EMA crossover day 5, taking a pullback for the first time 4 days ago. Today’s candle didn’t even twitch downside on the Heikin bars. Momentum downside. 4 hour swing size holding above 50ma. Holding above weekly and monthly Fibonacci targets.

Trend: Confirmed Upside 

Econ Calendar: Econoday

Red Star: International Trade, Jobless Claims (ADP)


Prescription


TF

2014-09-04-TF-TOS_CHARTS

We got the pullback in this market we were looking for on Tuesday.

Price action DOWNSIDE with momentum crossover downside. 4 price crossovers and 5 momentum crossovers in last 8 trading days! VOLUME barely below 60 day average. Price action fallout on Tuesday. BIAS DOWNSIDE for Thursday looks good. Holding 150+ ticks above 50 day moving average. 1169.5 line in the sand? Daily trend on Heikin Ashi upside with 5/34 EMA. Holding above Fibonacci levels. 50day ma at Swing size upside target that was already HIT. Are we extended? Doesn’t matter. Trade the charts on the setup.

Trend: Confirmed Upside

TF Average Daily Move: 1-1 for the week

Daily levels available for Premium Members.


IWM

2014-09-04-IWM-TOS_CHARTS

Glitch on the IWM @ 9PCT?

2014-09-04a-IWM-TOS_CHARTS

Price action DOWNSIDE. Momentum downside. BIAS DOWNSIDE for Thursday as price and momentum in unison. Same as TF; holding above 50 day MA and recent highs. 4 price crossovers and 3 momentum crossovers in last 8 trading days! 116.46 line in the sand? Swing size 4 hourly target above 50. Holding above key Fibonacci levels. Plenty of room to climb if we can break out of this chop of 2014. Always like a pullback. Can just as easily turn upside at support of 8ma.

Trend: Confirmed Upside

IWM Average Daily Move: 1-1 for the week

Daily levels available for Premium Members.


Stocks: Look for increased volume at market open of at least 50% above norm for average three month volume in 5 minute increments. Recommend to run scan on watch-list (IBD 50, Q50) for price momentum.


…as always, ready in both directions, regardless of trading plan. When opportunity presents , wait for 2 bar confirmation crossover and use 5/34 EMA and 5/13/21/80 to stay in trend. Trading rules always a gold standard.

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While I am a believer in simply trading the charts and what is in front of me from the market open, I will look for market trend based on the internals market wide and the market I am trading accordingly. No crystal balls or mirrors to tell you where the market is headed prior to the open, as I have no clue. Waiting on the 25m Open Range to set and subsequent 1 hour open range, with levels above and below I can manage my trade by removing contracts or re-entry based on contract size and look for the momentum move. My simple trading method by use of a combination of exponential moving averages limits my loss and times my precise entries regardless of where price action is. Either way, it’s all about patience and discipline. My trading plan is simply a cognitive exercise and reminder to always stick with my plan, regardless of which direction the market goes.

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