Trading Plan

  • Risk Reward is the only thing I can control
  • Minimum risk at the same time as maximum reward
  • WAIT for Confirmation
  • Options Trading: within first 10 to 30 minutes of market open the price for options is extremely volatile. Allow premium prices to settle along with EMAs to get organized on direction

How I use EMAs

  • 4 EMA
    • 10 minute chart
    • Extension rule: price will reverse back to test the 4 EMA almost immediately on momentum not news
    • There must be a visual gap between the candle and the 4 EMA on the close of the candle for confirmation
    • WAIT FOR CONFIRMATION on the next closed 10 min candle
    • Extension from the 4 EMA on the closed candle will retest the 4 EMA
    • Consistent volume and buying along the 4 EMA – OLED 5/4 – gives conviction to the upside
  • 8 EMA
    • A support and resistance level to scale into the trade. Above the 8 EMA and the candle taps the EMA consider scaling in and buying more into my position
  • 13 EMA
    • HOURLY CHART: 13 EMA cross of the 50 EMA is a good indication for continuation in the direction of the cross… crosses to the downside = selling off, crosses to the upside = uptrend, SWING LONG with stops just below the 13 EMA
  • 50 EMA
    • Acts as strong support and resistance
    • Above = support
    • Below = resistance
  • 200 SMA Daily
    • 13 EMA 200 SMA cross
    • Institutional buying flow to the upside
    • Low floats get pushes up because the flow of money into the stock

Entry Setup for Swings

  • 13 EMA Golden crossover of the 50 EMA
  • Candle closes over the 13 EMA and holds
  • All day hold as long the 13 EMA holds

Wide spreads

  • Buyers are not willing to pay for what the sellers want
  • Liquidity and Volume tighten the spreads

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