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The following is a general outline of my trading rules.
I primarily watch the index futures. My method is easily learn-able on these platforms and can be then applied to other markets.
At the core of the TradingFibz strategy are the combinations of exponential moving averages and Heikin Ashi candles to keep you in the TREND as long as possible. Fibonacci Patterns, Murray Math Levels and market internal studies may be used as supplemental support when in the trend. A stop should always be used and contracts taken off along the way with a stop moved to break even to ensure a no loss setup.
e-Manual is available with additional information and video links
Join the Trading room to reinforce and implement the strategy into your trading plan
Strategy works on…..ANY market. ANY chart. ANY time-frame
The contracts I watch: Index Funds, Crude, Gold, Yen, Euro
The hours I trade: US Trading hours (RTH): 9:30am – 4:15PM (EST)
Weekend Routine Options
- View Shadow Trader Video – Weekend Update
- View Economic Data coming up for next week
- Watch ICE exchange for market commentary if trading the Russell
- Heikin Ashi newsletter
- Chart Advisor newsletter of major indices
Premarket Routine/Market Open
- READ MY TRADING PLAN EVERYDAY
- View Econoday calendar
- Observe open gap line
- Note market internals
- Major economic data? FOMC minutes?
- Read Macro view: Kenny Polcari, Shadowtrader
The set-ups I will observe
- First 30 minutes of market – Caution….Usually – (Unless confirmation on Gold Standard criteria)
- Best to sometimes wait for econ data and 25m Open Range to setup.
- Option to wait for price action to move above/below 25m open range for momentum
- Price action that moves above or below the range tends to be a momentum drive. This does not mean I will wait for price to move above or below, it simply is an indicator for a stronger trend move. The 25m Open Range many times serves as a support or resistance.
- CORE Setup
- This setup may occur at anytime between US regular trading hours market open and close. Price action in trend below the 50/144ema cloud (option: T3-5 or 10 and/or 50ema on chart) and 5/34ema in sync. Price reversal would be all indicators upside with price above the cloud. Once setup is present, confirmation is evaluated on market internals.
- Gold Stand Setup
- Seen below on the posted chart, same as above on the core setup and termed as “ALL charts in sync” (5/34ema, 50/144ema in sync).
- High Probability Setup
- Price above or below the cloud?
- Confirm trend with 5ema across 34ema in same TREND as above
- OPTION: Identify T3 moving average Trend
- T3 moving average (10ema) to be in TREND
- Is price above/below the T3-5 or 10?
- If unable to plot a T3 moving average, substitute with a standard exponential moving average study with the same period.
- Look at 50/144ema chart to determine UPTREND vs DOWNTREND direction in the market
- Market Internal: Identify the $TICK (NYSE or index specific) TREND direction
- Market Internal: Observe the AD line trend and proximity to key levels
- To remain in trade, option to use the Heikin Ashi bars (or any TREND bar study) to keep you in the trade.
High Probability Setup
High Probability Setup with T3 Moving Averages
High Probability Setup with Exponential Moving Averages
View Tutorial here on setup of basic T3 chart setup for TOS
T3 Basic Template for TOS & Sierra Charts – CLICK HERE
Sample Chart Setting
- I utilize a Heikin Ashi/Flex Renko setting available on the Sierra charts platform
- In regular trading hours with volume, a higher time setting may utilized (i.e. 10-7-0 or 5-4-0)
- In regular trading hours with decreased volume, a lower time frame setting may be used
- In globex hours regardless of volume, the lower time frame setting is used
- If using the combo MML charts, regular trading hours setting is 5 or 10m and during globex a 1-2m chart.
- NQ in RTH w/volume: 10-7-0 Flex Renko/HA bars with 5m MML Overlay
- NQ in Globex: 5-4-0 Flex Renko/HA bars with a 1m MML Overlay
Market trend – “MARKET INTERNALS” (Shadowtrader Quad)
- ThinkorSwim: $TICK (YM, ES, NQ) or $TIKRL (TF) trend
- Sierra Charts: $TICK & NISS studies
- Breadth Ratio is greater than 2:1 ratio
- AD Line – near the pivot, zero or 750 line?
- Chart setup can be tailored to each index. Example of Market Internals based on e-Russell
- TIKRL, ADRLD, VOLRLD
- Without Moving Averages
- With Moving Averages
- With MML (Murray Math) Levels
- Enter on multiple contracts
- Initial stop placed at maximum risk loss (preferred stop: swing size position)
- Exit with ½ of contracts and move stop to B/E +1 at determined point or once price action has reversed TREND
- Manage the trade in TREND with movement of Stop.
- In and Out
Initial stop placed at most recent price action swing size level
Exit at determined point (5 – 1o ticks)
***Multiple trade exit strategies covered in the e-Manual and Live trading room.
Technical’s to confirm trend/support/resistance
- Murray Math Levels – (Support – Major S/R – Resistance)
- Daily Pivot lines with R1/Pivot/S1 identified.
- 25m and 1 hour open ranges
- Fibonacci Daily Retracement levels
- Fibonacci Extension levels if A/B/C pattern presents
- Overnight High/Low
- Average Move Up/Down
- Previous session High/Low
- Camarilla Pivot points
- Daily gap