Stacking Indicators Getting a GREAT entry! TWEEZERS Tweezer top/bottom at the band The stock is trending up Gap down (against the trend) Any moving

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Derrick Dalton
5 years ago
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1 Dean Storholt

2 I am not a registered broker-dealer or investment adviser. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because I consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that I am telling you to trade the strategies or securities. Keep in mind that we are not providing you with recommendations or personalized advice about your trading activities. The information we are providing is not tailored to any particular individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security or a suggestion that it is suitable for any specific person. Keep in mind that all trading involves a risk of loss, and this will always be the situation, regardless of whether we are discussing strategies that are intended to limit risk. I am not subject to trading restrictions. Myself and other instructors could have a position in a security or initiate a position in a security at any time.

3 Trading Log

4 Stacking Indicators Getting a GREAT entry! TWEEZERS Tweezer top/bottom at the band The stock is trending up Gap down (against the trend) Any moving average the longer the term, the stronger it is The gap takes it to a major moving avg sma More than one average in same area Gaps to the Bollinger band Rising/Falling 3 at a moving average Bullish or bearish engulfing candle

5 Stacking Indicators Day count / candle count Old levels of horizontal support/resistance Can include round numbers Retirement pattern at a moving average Repetitive retirement can = TWEEZER Break above the first 5 minute candle Pivot Points Bollinger Band Squeeze/Breakout Volume lower volume indicates its only retracing Blow off move? Fibonacci s Keltners

6 Stacking Indicators Double tops/bottoms Head and shoulders/neckline Old levels of horizontal support/resistance Can include round numbers Rectangles Stochastics MACD RSI ADX DMI +, DMI- Richard

7 Stacking Indicators Start by stacking indicators on the daily chart Like to have at least 4 Then move to the five minute chart and continue stacking Can even continue stacking on the one minute chart

8 Stacking Indicators Good CALL entry? The more the merrier

9 What about a delta?!? Lower delta s are not meant to be permanent

10 Where do you set stops? THE REASON FOR YOUR ENTRY IS THE REASON FOR YOUR EXIT! Stack indicators for stronger support/resistance The closer our entry is to our exit, the smaller the cost That s why Tweezers get so much love from me I like to be first to the party!!!!

11 Trade Entry Entry Rules 1- What direction is the stock going (DAILY CHART) Avoid calls on bearish stocks Avoid puts on bullish stocks Don t swim upstream, its harder Day trade exception 2- Where is the stock on the 5 min 3- Is it near a Bollinger band? Moving average? 4- Wait for a retracement to the 10ema or 20 simple ma You may miss a trade

12 Trade Entry Entry Rules 5- Know where your stop is. Below your entry If the band is your entry, can your stop move? Stay within your risk tolerance 6- Limit the number of positions you have until you set a hard stop or you have neutralized your risk in current trade. 7- Once you have your indicators stacked on the daily chart, go to the 5 minute chart and begin stacking them again. 8- Think ahead of the turn. Be the wick!

14 Bollinger Bands BOLLINGER BANDS are my NUMBER 1 indicator TWEEZERS are my NUMBER 1.1 indicator TWEEZERS at Bollinger bands are SWEEEET! If you don t have Bands on a chart, We cannot be friends!!

15 Bollinger Bands 3 RULES OF BOLLINGER BAND TRADING! 1- Avoid calls at the top band 2- Avoid puts at the bottom band 3- Follow Rule #1 and Rule #2

16 Bollinger Band Angle Look at the angle of the BANDS! Are the bands Horizontal? Horizontal bands are stronger The opposite is true for Moving Averages Is the stock going band to band?

17 Bollinger Band Angle Stack TWEEZER?!?!

18 Bollinger Band Angle SELL SOME?? WHY?? RELOAD?

19 Bollinger Band Angle There is a special relationship between the bands and the 20 sma Horizontal bands usually mean horizontal moving avg Angled Bollinger bands are weaker

20 Bollinger Band Angle Look at the angle of the BANDS! Are the bands angled or sloped? The steeper the slope, the slippery they are

22 Bollinger Band Angled Look at the angle of the BANDS! Are the bands angled or sloped? The steeper the slope, the slippery they are This is where they form the money channel Can be used to time premium selling or add ons Moving Averages become more relevant why? Steeply angled bands NEED A REASON TO TURN

23 Bollinger Band Angled Stack

24 Bollinger Band Angled $100 Move +-

25 Bollinger Band Angled Sell calls Add Recognize $ chnl 5ema

26 Bollinger Band Squeeze Bands get very close together Bands usually horizontal Can signal AWESOME breakouts / breakdowns Often give us the avoid calls exception!

27 Bollinger Band Squeeze

28 Bollinger Band Exceptions Outside band gives us the avoid calls exception! If stock outside the top band, go ahead and buy calls If stock outside bottom band, go ahead and buy puts REMEMBER The reason for the entry is the reason for the exit!!! Therefore when it gets inside the band, tighten stop or exit

29 Bollinger Band Exceptions Outside Bollinger Bands How long outside band? Inside band can give us a nice entry Steeply angled bands may only retrace to MA

30 Bollinger Band Exceptions

31 Bollinger Band Exceptions

32 Bollinger Band See Saw

33 Class will be Feb 12/13 First day - classroom and chart analysis Chart setup/trades Second day will be trade execution/monitoring and more classroom The See Saw/ The Hook Cover band tops/bottoms, setups, option selection, chart setup, pattern recognition My 10 trading rules

34 TWO FULL DAYS live trading with ME and BILL! Normal Price $2995 $1995

Stacking Indicators Getting a GREAT entry! TWEEZERS Tweezer top/bottom at the band The stock is trending up Gap down (against the trend) Any moving

Stacking Indicators Getting a GREAT entry! TWEEZERS Tweezer top/bottom at the band The stock is trending up Gap down (against the trend) Any moving Dean Storholt I am not a registered broker-dealer or investment adviser. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing