SD'S -2023 DON'T JUST SIT THERE TO SURVIVE- MOVE&PROSPER!

[sd]

5-25-2023


QQQ's futures are up High- NVDA blew out expectations- S&P also in the green....
LOLO had taken a small position yesterday, and is seeing an +$80 jump at today's open-
She will sell a part at the open, trail a stop @ $10 if price goes higher- and raise the remaining stops higher to at least capture $60.00 in the remaining shares, but giving Price room to rally until it fizzles-

For myself, I wasn't willing to take a chance on an earnings lottery ticket- so no NVDA gains for me....

The DOW is in the red premarket


Hard to believe, but congress is going on a recess with the debt ceiling unresolved-Political 'Brinksmanship at play' - They should all be penalized for not attending to business- shouldn't get any paychecks until they get this debt issue resolved....Fire the d**n politicians! Send them all home packing, and vote some common sense independants into office that can get something done for the good of the country.!


Setting up for the open- With the Nasdaq going to have a large gap open- I cannot chase it- so TQQQ /SQQQ may see an overbought and oversold condition that will reverse intraday once the buying enthusiasm wanes for Tech -May be an opportunity for making a play in SQQQ...?


Present Euphoria surrounding AI and NVDA's blow out earnings disregards the likelihood that Funds will be sellers into this big upmove as the weighting of NVDA will likely get trimmed to meet some fund's allowable % holdings-

MS estimate raised to $450 for NVDA.

bOUGHT soxs AT THE OPEN $15.09 STOP SOLD $15.68






My 1st trade of the DAY- SOXS - was a quick entry on a Reversion expectation- reaction to the big gap .
I got in early @ 9:32:35- The 1st 2 minute bar hit a low, and I entered @ $15.10 on a market Buy- with just a 20 share test position.
I set a stop $14.98 below the low $15.02 I did not want to set a stop at the Round # $15.00- but slightly lower.
Price moved quickly in my favor- i Jumped my stop to $15.29- as Price surged higher- Saw Price above $15.80- raised stop to $15.68-
Price topped and came back and took me out at that price.




gAVE BACK aLL OF THE GAINS ON tRADE 2 -AS i DBLD MY EXPERIMENTAL SIZE



tRADE 3- soxl IS HITTING RESISTANCE @ TODAY'S OPEN HIGHS-
sIMILARLY soxs is basing at today's lows- Here @ 11 am.....




Note the divergence with price and the Macd on the 5 minute SOXL chart- I'm looking for Price to Fail to move much higher here- exhaustion? Short covering?

Put on another Long SOXS- stopped out! Wrong again! Now I'm in the RED by $9.30! on the day. Doubled my position size- on this last order- from just 20 to 40 shares- overly confident.



The breakout of the overhead resistance- :SOXL!


So, the MACD negative divergence in SOXL has to give way to a upturn soon!

will lick my wounds and look elsewheres-
I did do Well- earlier - as I took a fling at a bounce in ALB drop in price; on the attempt to Rally - I bought, and immediately saw a quick move a bit higher- Raised my stop immediately above my entry-
And got stopped out for a pennies of gains- and price then dropped lower....within 2 minutes.....I failed to continue to watch it, and it indeed made a nice bounce off $203.00 - as the swing low .
Notice- the MACD & PSAR indeed signals what would have been a good lower entry for a $2 move.



It is Fun to explore and Test variations - but I want to end today in the Green- so, I'll have to find a less extended trade and not be looking to be the contrarian ...
TZA- extended-
sTOP IS NOW JUMPED TO MY COST OF ENTRY ON HIGHER MOMENTUM- 40 SHARES... SIZING UP GRADUALLY


rAISED STOPS TO ABOVE MY ENTRY AND NETTED A SMALL GAIN ON THE 40 SHARES SELLING $34.14 -






hmmm-
tHAT was a prudent Sell! Price move had topped out and is reversing- This would have been a signal to Go Long TNA!
Watch and see what happens as Price is merging at the earlier base support /resistance level.


rE-ENTRY tza- tHE pRIMARY TREND OF THE dAY IS up - Trying a re entry here as Price bounces from the prior base support level.
Barely have a MACD upside cross on the 2 minute- Moved stop up with psar $33.68 from $33.59 on 40 share position.


PSAR stop fills- Note that the 5 min TNA is trending sideways, as is the 2 min TZA- My PSAR stop got taken out- as price came back towards the noted support line -I had sized up to a 40 share position- so , that's dropping me further into the RED @ 1 pm....
This would have been a better possible entry -Close to the P.O.F.

Back Long TZA on the breakup higher above psar @ 1pm
With 3 hours to go, plenty of opportunity for the prevailing trend to again take the lead this afternoon- Turning into choppy-non trending price action-

TNA Long- 50 - stops split- 1@ B.E. for !/2- the remainder a few pennies higher- to follow each step higher bar...


tna FAILS TO DEVELOP MOMENTUM HIGHER- pRICE SOFTENS, sTOP IS RAISED TO SLIGHTLY ABOVE THE COST OF eNTRY AND STOPS OUT

aND THE VERY NEXT REACTION-

THE 2 min CHART TO GET A CLOSER IN LOOK:


hEADING OUT @ 2:30 - COUPLE OF CHARTS UPDATED-

nOTICE HOW tza ROLLED OVER- and the 5 min MACD cross came pretty darn Close to getting out with gains!
However, it's suggesting a bottoming action here - which equates to a topping action in TNA




I'm down slightly- $13 today after a winning start! The price of an Education these days!


I actually came back @ 3:30- and sized up a bit on what I had hoped would be a rally into the Close -
I attempted 2 trades in what appeared as potentially bullish set up in TNA- and both trades ended up losing- Down -$23.00 at the Close with a poor batting average on the day

[sd]

5-26-2023
Retrieved the game camera cards- A family of 4- Mama Fox and 3 kits- nesting in my materials storage area- Cute-! adjusted and set a 2nd camera there to capture their antics.
When I go down there, I 'm singing "Oh Sussana-" and- in case Mama feels threatened-and gets aggressive- a pitchfork -as a potential deterrant.
Futures in the Green but only modestly- Today shalt be a day of Rest sayeth Tech? Or Rip another step higher?
Heard this am on CNBC that this year's Rally is the narrowest rally seen in the market historically based on market breadth....
So, will Mega AI/TECH continue to lead us higher through MAY?
Amazing!
Often -after a big move day.... we see a fizzle and fade after a higher open... -
TQQQ up +1.21 % premarket $32.91 @ 9:15 am. NVDA Flat @ $380.00 ....

Ford & TSLA partnering on charging stations??? Should be good for Ford!
May take a trade there...Premarket up 2.37 % @ $ 11.66

TNA- Got a good low entry- Missed selling into the Pop higher- Price came back and took out 3/4 of my position just $0.03 above my entry cost-
Holding a small 1/4 position- was unable to set a stop below the Price reasonable- due to wide BidStops. Sell orders.



Re-entry stops out - Down -$2.00


@ 3:42:

Are we going to range sideways???

Tech surging higher- Poor trade selection on my part!


Semis up large as well with a gap higher open and still going!



Today's price action, good entry and initial stop would have still been in place had I kept that initial stop-
Understanding potential volatility - and not reacting too quickly when price is simply not behaving along the uptrending fast ema- choice is to try to get an entry on a lower price move- that is not part of a downtrend occurring-
This dbl screen shows the underlying IWM index along with the TNA.

here's the 5 minute chart of TNA


One of D's observations made a month or so ago in referencing the style of trading in these leveraged ETFs was to be able to sit through some wider volatility without forcing a reaction-
So, even though I'm just trading with small positions and Risking relatively small amounts- My "normal" reaction would have been to have trailed a series of split stops under that ealy higher move- scaled out into the upside momentum, and then looked to re-enter- At the same time- If today's trend continues to move higher- The initial entry was on a swing low- Risking a relatively small % - and would be well into profitable territory with a relatively large % gain relative to the small Stop ....

It makes sense to protect the entry cost when Price makes a substantial move in my direction though! Scaling out and netting some gains along the way satisfies that desire to not just sit and wait.....

TALK ABOUT MOMENTUM :



tHIS HAS BEEN A VERY STRONG UPSIDE MOVE TODAY! Seldom do you see this strong momentum persisting as long as seen here!
PSAR just noted a drop in momentum , and a 1st PSAR sell signal was generated - This suggests trailing stops should be tightened, or prepare for a bit of a sideways consolidation to develop- OR- Potentially a top/reversal may occur.


sOME OF THE SIGNALS AS THE TREND WEAKENED-
Note that the MACD had ticked down from initially being rising- and the H bars get progressively smaller even though Price increases-
Also, the MACD line gets progressively lower- a divergence with Price action moving higher- and makes a 0.0 line cross before Price actually makes that low Closing bar under the fast ema.

Showing 2 PSAR values here- that were trailing and above Price- Potentially they will provide a point of taking a re-entry- or a new entry position- by applying a Buy-stop using the higher Psar value- A more cautious Buy entry would use the slower Psar that is a bit further from Price than the typical 0.02 psar.
PRICE MADE A BULLISH UPMOVE ABOVE THE FAST AND SLOWER PSARS- THAT WOULD BE USED AS POTENTIAL RE-ENTRIES-
PSAR IS THEN GENERATED TO BE BELOW PRICE AS A POTENTIAL TRAILING STOP-
NOTE THAT THE 34 EMA WAS NOT HIT ON THE PULLBACK- AND IS MID POINT BETWEEN THE 2 TRAILING PSARS.


aS Price moved higher, it overcame the prior high - which is considered to be a potential resistance level-
The Fast Psar is now above the cost of the reentry , while the slower Psar is about $0.15 trailing the fast psar- The 34 ema is trending higher-


THIS CHART ILLUSTRATES PRICE PAUSING- WEAKENING-
A SLOWING ON THE MACD, PRICE BARS DIPPING BELOW THE FAST EMA-
THE FAST PSAR-IF USED AS A TRAILING STOP- IS DIRECTLY BELOW PRICE- AND NETS A DECENT $0.23 GAIN ON THE RE-ENTRY
tHE SLOW PSAR - PROVIDED A LATER (HIGHER COST) RE-ENTRY, AND HAS JUST MOVED ABOVE THE INITIAL RE-ENTRY COST BY $0.03


PRICE MADE A SHORT BREAK UP MOVE, AND APPEARS TO BE CONSOLIDATING SIDEWAYS- DESERVES A BREATHER AFTER THIS BIG MOMENTUM RUN-
I ANNOTATED SOME OF THE FACTORS ON THE CHART-
NOTE THAT FAST PSAR IS NOW IN SELL MODE - AND IS ABOVE PRICE-
FAST PSAR IS SUGGESTING THAT A HIGHER BUY-STOP OR A HIGHER MOVE IS REQUIRED TO GET BACK INTO THE TRADE-
SLOWER PSAR 0.01 IS TRAILING BELOW PRICE .
THE 34 EMA IS BELOW BOTH PSARS, BUT AS A STOP , IT HAS NOT TRIGGERED AND IS STILL LONG WITH THE 1ST ENTRY-




PRICE IS CONSOLIDATING -TIGHT SIDEWAYS BARS


UPTREND CONTINUES- UP +7.44% ON THE DAY!- MARKETS OVER $4200.



cOMPARING SQQQ AND THE INVERSE TQQQ-
SQQQ HAD A MACD UPSIDE CROSS ON AN ATTEMPT TO MOVE PRICE HIGHER- THAT FAILED TO WEAKEN AND DECLINE WHEN PRICE MOVED LOWER.
SUGGESTING A DIVERGENCE???
AS TQQQ / QQQ APPEARS TO BE RUNNING OUT OF WILLING BUYERS - AND THIS BEING FRIDAY-Will we sell some traders and Institutions lock in gains today???


tHE dIVERGENCE IN THE MACD AND THE PRICE ACTION SUGGESTS A POTENTIAL TOP - KEY WORD- IS POTENTIAL. BUYERS EXHAUSTED?
THE INVERSE SQQQ ALSO HAS A DIVERGENCE TO FAVOR A PRICE MOVE HIGHER .
sPEC ENTRY DOWN HERE- STOP $0.02 BELOW THE LOW








SEEING INITIAL SIGNS OF THE UPTREND WEAKENING ON THE 5 MINUTE CHART IN TQQQ.
SQQQ trying to make a step up higher- but the momentum has clearly been to the downside...
price appears to have tried to make a multi-bar base and reversal- so this represents a logical place as a swing low- to set a stop just below $0.02.
The catalyst for this as a trade is the potential for profit takers to step in to lock in the very substantial gains TQQQ has seen in the past days, and to be in cash for the weekend.
Price is very extended in the Tech and semi sectors.


@ 2PM- TQQQ appears to be seeing some slight weakening -
Profit taking ahead of the weekend will likely be an agenda today .
When- or IF- that happens is yet to be seen.
The 34 ema -as a stop is still viable by quite a margin to price- presently.
The Slow Psar is still alive as a stop midway between price and the 34 ema- while fast psar waits above price-
to expect another attempt to move to a new high today is to be expected- Today's high in TQQQ represents a new resistance level- and a rejection at that level would push the downside momentum. Similarly, the swing low as the downside momentum in SQQQ represents a nominal "support' level- and is also the proverbial 'line in the sand' for Price support validation.





2:16


Price has made a few green upside bars-
and the 34 ema is closing in below price as it declined -

Fast Psar was touched and has thus signaled a -go Long- with the fast psar below Price now doubling as a stop-loss.
The slow PSAR has gone above price -as a potential buy-stop- this was generated by Price declining a few bars earlier.
The SQQQ has generated a fast Psar sell as it's 3rd red bar breached the lower Sell Stop-loss price - and this lowest bar also triggered the slow Psar -
Both Psar values are now at the same level. and price is at $22.95 -

How does the Price action resolve itself?

It's just 2:30 pm, and it's an interesting study to see which way things go-
I have a small position risking $10 on this trade for 50 shares.


Price is holding just below the earlier high made today ! Potentially, looking for some other buyers willing to pay up in the FOMO!


TQQQ Price Moves higher!
(I dropped my stop to $22.85 to see if this was just a probe- above the prior high-}


Wider stop gets triggered as price makes a push higher!



I won't chase this - but will follow this price action - My thesis is that this will sell-off on Profit taking today!
It's now 3:30 - and Price in TQQQ is still holding it's gains!



I gave this 1 more try- Held until a few seconds before the Close- didn't get any whoosh of sell orders-
Sold at my entry cost @ the Close- for a Break even...

It's been an instructive day following TQQQ- Unfortunately, I selected the wrong sector to focus on- and should have jumped over to the Tech or Semi sector today-
Lesson there is to focus on the better trending -particularly after 10 am....

[sd]

SAT am- Responding to a friend about his management of a portfolio not getting good returns compared to where he started- and seeking some 'safety' in dividends.

S&P peaked Jan 3 2021-
All typical stock/bond portfolios lost big in 2022- and are still likely down compared to the peak in 2021.



Here's a performance chart of this year- TECH has led the market sectors higher- and primarily that was a few mega cap tech companies that are overweighted in the indexes-

Followed by SPY with a very decent return above the historical average and even pays a small 1.8% dividend (or approx -used to be that in the Total Return) TR.
Coming up dead last are the companies that are those long term dividend Aristocrats. maroon line with a loss YTD

Russel 2000 stocks are also under pressure as the markets realize the small cap companies will find it difficult this year to get financing due to the stricter standards and Fear in the Regional bank sector.




Copied from the LB message board- chart comparison by JASON:






Also from the LB board- Devoid posted several of his charts- and I'll include them here -as his style and TA approach is what I am trying to emulate.
Checkout the Leavitt brothers website- 2 week free trial, and a lot of good input from the group of Traders that post their diverse chart styles and approaches to trading.
Jason also provides a potential 2 dozen trades each week, a summary video on those picks and what he is looking for. Also a commentary on the market.
www.youtube.com/watch?v=BBHzXG9Eicw&t=1520s
www.leavittbrothers.com


Rain day today- I'll be copying some of D's relevant charts today


Retrieved the Game camera- Family of 4 foxes- Mama and 3 young ones - living in the back outside storage area -


Mama's on watch while the 3 kits are playing -and tumbling on each other



Getting back to trading- and Day trading in particular

I've selected Devoid's approach as one that I can likely replicate- albeit with the Nuances he has acquired with years of using this-
As I understand it- he had a full time job and just recently retired- so he applied this approach and also kept up with the day job-
As he has noted- the largest gains are made on swing trades- holding overnight for several days- or longer-
He prefers to trade primarily to the Long side- That may just be a personal preference- or he recognizes that the primary trend this year is to the upside- and trading

Stock selection is one critical component-
Find one with momentum, good volume and relatively narrow bid/ask spreads.
Position sizing- Presently I've dropped my position size down as i explore some variables- such as watching the Inverse fund for trend reversals- and to get a better 'feel' for what Price is doing-
I simply blew it on Friday- not initiating a trade long TQQQ but instead went to the small caps .
Getting that ideal low entry as an upswing starts-- and being willing to allow some price volatility- as long as the trend is still intact-
The difficulty of trying to view both the 2 minute alongside the 5 minute, is the 2 minute provides more price signals and that shows up as potentially a greater mix of trending and perhaps retracing price
bars. The 5 minute chart bar encompasses 2.5 2 minute bars- and which is the ideal reference to view price action? The 2 minute bar and ema's are much tighter than the 5 minute chart would show.

a few years old Youtube video from Jason where he demonstrates how he applies the MACD , MACD histogram (looking for divergences as an early signal) , and the stochastic to confirm an entry
This same combination approach can be applied on all time frames-
i.imgur.com/QMWH9rh.png

www.youtube.com/watch?v=7SCnCCyRhS0&list=PLcVARkaMRYCTaWjP1WdEfPhWdeYRyAGf0&index=2

OK- didn't get as far as I had hoped today- Rain held off and .... other stuff gets in the way....


D's posts on the LB website are clear, concise examples- and he is also including some Explanations for those of us trying to acquire some skills in copying aspects of his posts-

As I swung over to follow the price action in TQQQ and SQQQ- I realize that I had interpreted the MACD cross @ 11 am as a signal that price was about to make a reveersal to the downside, and SQQQ would take over and Rally- Nothing was further from what actually transpired-
So- How did I "read" the MACD cross so incorrectly?
It's humbling to think you know something and find out that that may not be so .....
I've used the MACD for a long time, thought I was prescient in applying changes in the Histogram to foretell the directional change that was about to occur.... etc.
So, How should I have interpreted the MACD , the 11:00 Cross lower, the Histogram dropping below the 0.0 line-
and- what did the stochastic tell us as an early "confirming" signal?

Both Jason and Devoid rely heavily on the 2 indicators, as well as understanding what Price is also doing regarding predominant trend on a higher time frame-
Here is My chart of TQQQ on Friday, with a few annotations. The top 2 chart indicators-ADX; CCI; I will disregard for now-- Sometimes....

'lESS IS mORE" - As Mom advised when seasoning the food, or applying fertilizer in the Garden... The same should be applied to using as few essentials in my trading approach, master those, and only tweak them once fully understood as how they correspond to provide accurate trade decisions. Viewing too many diverse signals can cause one to fail to refine an approach.

The 5 min chart-
and below that- the 2 min chart with only the MACD, Histogram, and Stochastic -for comparison.


2 minute:

Adding in the 3 minute chart:


What do the MACD, MACD HISTOGRAM, and the Stochastic suggest- compared with the actual Price Action?

Solid positive price momentum from the OPEN! Elder green bars right off the start, with 8 consecutive green bars trending vertically higher , a single Blue bar, followed by a few green bars, then slowing momentum blue bars - and- Not a single bar CLOSING below the fast 3 EMA until 11:05 am!
The Price bars themselves - while showing some volatility- did not have any single bar penetrate below the prior bar's low...until the 11:00 am bar made a lower Close that was preceded by an indecisive dOJI -
The Stochastic indicator stayed completely above the 80 level....
3 min chart demonstrates price pullback @ 11:00 , and Fast psar provides a good potential re-entry level on an upmove . Notice that the Psar re-entry precedEs the MACD upside cross BY several price bars.
But- Perhaps the Safer entry is on the upside cross! This trade finally stops out as the price pulls back @ 3:27 and would hit the Psar stop and Closes $0.15 lower.

[sd]

Jason @ Leavittbrothers each weekend has 2 dozen or so potential trades setups for the week, and he does a video review of each trade-
On the right was his chart of SOXL- He noted he had mentioned that semis were increasing in gaining participation and strength- He felt that SOXL needed to perhaps drop back 1 more time in this range before a potential breakout and a possible move to $22.

Talk about Nailing it !
Certainly, not all of his potential trades work out like this- some initially took a move higher, and then faded....
but as I am reviewing this Rainy Sunday am- and considering taking some added swing positions- this suggested trade, expectation for the price to have 1 more pullback before moving higher was spot on!



TQQQ made a huge upside move last week, as did SOXL-
Looking at a Daily chart- 3 Primary MACD upside crosses this year. 22 days, 19 days, and presently 13 days in. Price had declined in 2022, and the longer term moving averages 200 & 150 have finally seen the faster EMA's move above them this Month- Potentially, these emas are all now in proper alignment.

Big Move higher Thursday and more so on Friday...following several prior days that declined below the fast ema.
The question is- Will this outsized 2 day move have more room to run, or will it see the more usual pullback and consolidation as seen in the Past?




Dropping down to a 2 hour chart:
How many indicators are too many?
How timely is the indicator to Price?
What "works" on this time frame for valid signals and confirmations?

The 2 hr chart- as a potential point of reference - gives a close up view of what occurred during each day- with 4 bars per day.
Note that the Stochastic is more sensitive to Price movements- and provides multiple signals compared to the MACD fast line cross . The histogram itself then shows a declining bar below the 0.0 line.
Looking at the MACD FAst line cross Down to the Slow line as a potential sign of price weakness- (Not necessarily a Sell" signal.) but is this a good place to tighten a stop to just below that Price bar that generated the weakening momentum? `



In the above chart, A,B,C denote the signal line cross of the fast line & the 2 hr bar that caused the histogram to drop below the 0.0 line .
What do these 3 signals have in common?
In each case, the prior Price bar (s) had also dropped below the 3 & 8 period ema moving averages.
In Samples A,B, - the prior bars also had dropped below the psar that was potentially used as a trailing stop-loss
Sample C coincided with the PSAR being triggered. .

In this next chart, we'll take notice of the many Stochastic signals- that reacted to each price bar -
While the stochastic can make multiple slow/fast line crosses- the overall level of the lines above 80 indicate a fairly strong trend is in place-
When the fast line declines through the 80 level and is descending how far will it go?
As seen in the sideways price action May 8- May 11, the stochastic line showed weakness and several crosses.
Price dipped below the 3,8 emas, the histogram weakened, but the uptrend remained in place-
On May 12 , Price violated the 21 ema, dipping close to the 34 ema- Uptrend is still in place- but this coincided with a MACD cross lower, and below the PSAR .
Price then rallied to make a upside Close @ the EOD.
Stochastic Between B & C- held above the 80 level- a sign of trend strength. . It dropped through the 80 line on May 23. Note that the reaction to this higher momentum move in the days earlier, saw a sharp reaction in the Price reaction as profit taking occurred, and dropped Price down to the 50 ema.

Also note that PSAR- if used as a trailing stop-loss captured gains during all 3 periods.
Hmmm- chart annotations interrupted...
The stochastic below the 80 level- but above the 50 level reflects that price is not trending strongly- but can be seen potentially as a still positive price action- in a consolidation range.....


Stochastic as an early Entry signal :
Just as stochastic signals early of a possible price weakening, it also signals early- ahead of the MACD cross- of a potential price attempt to move higher-
One of the potentially best signals may be generated when the stochastic is below the 50 line, and particularly below the 20 -oversold level..
This potential signal may provide an early entry- that is very Close to the lows of the Price action-
Potentially this provides a relatively lower Risk tight stop-loss if the price moves lower -
As the fast line makes an upturn from being in a decline- it makes a "HOOK" - an early signal that the present price bar is improving from the prior bar,
The HOOK itself may not signal a winning entry- but an upside cross with the hook combined worked well in this chart for perhaps a partial entry , well in advance of the MACD cross, but more likely to also provide more whipsaw failed signals-



PARABOLIC SAR -PSAR
Used as a trailing stop-loss- or a potential trailing buy-stop to take an entry-

school.stockcharts.com/doku.php?id=technical_indicators:parabolic_sar

ENTRY A - Price was below the emas in a tight range, and had declined. Price opened higher Apr 26, moved up @ 11 am and would have triggered the psar buy-stop $26.25.
The stop-loss was then the low psar below the entry $25.10. -Seems a bit too wide- and, is moved up with each bar a bit higher-
Price had a weak red closing bar that day, but gapped higher Day 2 and trended higher for several days.
May 1 price Closed $28.05 and the trailing PSAR was $27.85- and triggers as Price declined 5-2 Net gain $1.60 = +6%.

ENTRY B -stochastic had signaled the day prior. May 5- a bullish green bar opened, followed by a 2nd higher bar , triggering the trailing overhead psar buy-stop $27.80.
5 days later - Price had closed @ $29.00 and the stop triggered $28.50 Net gain $0.70 + 2.5%

ENTRY C - Buy-stp fills $29.10 stop loss triggers 5-23 $ 31.50 - Net gain $2.10 +8%

Worth interjecting here- Notice the big up move that had climaxed 5-22 Price reaction- that snap back brough price back to the 50 ema .

I expect a similar price snap back will occur during ENTRY D - and that the Price momentum is too vertical to be sustainable- PSAR is lagging -and perhaps too wide in this type of an early entry. The entry D was on the gap up open- $32.34 -Price Closed Friday $34.98 - Essentailly a huge move from the swing low that Price was at just 3 days earlier 9$30.00)
The present 2 day gain is up $2.66- Already +8% -
Monday's Price action may be one more leg jumping higher- should be seeing some selling into this move- JMHO.

At the very least, the PSAR is lagging - the stop should be higher -at least above the cost of entry- and a partial sell is warranted into the Monday open.
I'd have to then set a stop at the 10 ema- $33.59 and lock in some decent gains.



wHAT IS THE FUNCTION OF THE adx +di/-di AND THE cci? bOTH PROVIDE GRAPHIC VIEWS - adx LINE INDICATES THE STRENGTH OF THE TREND- WHILE THE +di gREEN- WANTS TO BE ABOVE THE - di
a HIGH LEVEL OF THE adx LINE INDICATES STRENGTH.
cci MOVING ABOVE THE 50 LINE- INDICATES POSITIVE PRICE ACTION. often these will trigger ahead of the MACD and are simple confirmations ...

Notice how well the 1st Elder green Impulse bar following the upturn on an oversold stochastic worked as a potential entry signal each of the 4 times shown-
Potentially, this also provided a potential entry at a lower price below the psar - In several instances, it signaled ahead of the MACD cross ...
2 HR TIME FRAME Will suit my risk Aversion by Risking far less than a Daily chart requires.






Now, How about resolving that pesky early entry on the day trade.....

[sd]

OK- Presently TQQQ is in a nice steady uptrend- Trading With the Trend makes sense, and is a higher probability trade.
Perhaps the best "test" is to see how a stock signal works when the trend is not in your favor....
In Jan TQQQ was is a significant and strong uptrend.
IN Feb- TQQQ had topped out, based sideways for 2 weeks, and then sharply declined the last 2 weeks of that month...


I'll use a 2 day -5 minute chart - not enough time to get into depth in each chart...

[sd]

Memorial Day-
A day to give Thanks! for all that have given and sacrificed for This Country!
Paul Linehan- one of my Great Uncles- served on a battleship in WW2 that was torpedoed and sank-
And he floated for 2 days until rescued .... and many of his fellow shipmates were eaten by sharks-

He married a French gal- Marianne- and they lived in Norfolk- and - in a moment of marital disharmony ,
She served him Fish for dinner. That almost dissolved the marriage.

Some wars make sense - are necessary to protect our way of life-
and then there are those other conflicts where American Men and Women have given their lives and we owe them -and their families for their efforts and sacrifice.

Somehow, it seems this Country has lost it's way, lost it's standing, is becoming more of a socialistic leaning shadow of what we once represented on the world stage-

Hopefully, we find our footing, and the fringes on both side of the 2 parties get negated- and we can once again get mainstream Americans seeing their representatives representing them.

To hell with both sides that are way out in the left or right wings.... Dump them!
Can't get resolution on the Debt Ceiling? No Paychecks, No time for a recess....Get your Act together Politicians-
All politicians should be limited to 12 years- Max.


...................

[sd]

Monday pm- LANCE- SMB explains the concept that buying at a price level is not the same value at the same price -in tems of expectancy for the trade-
This is an important concept- So- buying into a decline before seeing the signs of an actual attempt to make the U turn- versus buying once the turn appears to be potentially underway-
Although he does not express it exactly this way- The essence is to take a long position in a decline only when you think you have a Reversal of Trend as a likely place to take the entry -

Similarly, this also works in uptrends/breakouts etc...

Principal is valid on all time frames- not just for short term micro daytrading-

www.youtube.com/watch?v=dUE0zmPCihs

In Options Trading- Dr Jim from Tasty trade- several hours video from Newt to beginner Novice :
www.youtube.com/watch?v=89NHBLDTQyk

[sd]

Did not get back to taking the other side of the TQQQ charts -using the inverse- SQQQ- Nor did I get to explore the 2 or 3 minute as a potential better view of Price at the open-
Will explore this further tomorrow...

With a few e-mails sent out today, and with markets having achieved new highs- The Debt ceiling resolution is pending-
AI- all the rage these days for a few dozen stocks due to NVDA's crushing the estimates about it's potential future earnings....

OK, calm down- This is exuberance - and perhaps irrational as the past Fed chief declared about the markets- How quickly we forget-
The qqq's are already up +30% YTD and the momentum has NVDA making big gap aways- Lolo sold a portion last week, will sell another this week- and ratchet those stops higher-

Will this be a week that the markets Peak? Feels like it should happen here- and we drop lower in June.....Plenty of rationale that TECH just cannot continue it's huge incline YTD!

[sd]

-5-30-2023 Futures are in the green-mostly-

Nas leading- Big gains continue in Tech and semis-
Noticed in the Tastytrade premarket open yesterday pm- Tom Sosnoff has been short the Nas surge- as being the "Most overvalued HYPE" - good thing he has deep pockets.

LOLO is seeing such momentum gains!
Debt ceiling agreement reached this weekend? Will this be a 'Buy the Rumor, sell the News' event for the markets?

From the LB board '

D explains some of the early entries he has taken- and he explains how he does not necessarily wait for the actual MACD cross- as that is often a bit late-
As I pursue some daytrading, I similarly have noticed potential better earlier entries- potentially the fast time frame provides- and more whipsaws-

It's hard to jump into an already extended trade- but look what the markets have given to some of this year's leaders-!
When the NVDA momentum stalls, it's likely the entire tech sector takes a step back and resets.
It's absolutely amazing how far this sector has run in the megacaps- and perhaps now some of the smaller mid caps are also catching a tailwind- as the market looks to be broadening out according to Jason & others...

So, my Bias is essentially negative and defensive- on the overall market and where we likely are heading- but that Bias certainly got in the way of taking swing positions that could have delivered outsized returns.

Listening to all of those analysts that kept projecting a sharp reset- Well respected - Like Mike Wilson @ MS - and even LIZ YOUNG- , Dan Nathan, Guy Adami- & many more-
Eventually they may be found correct- but thats a lot of Green that will be given up to get to their projections-

look at the breakouts in the Semi sector: Wide participation -

finviz.com/screener.ashx?v=211&f=ind_semiconductorequipmentmaterials,sec_technology





The semi conductors Finviz screener :
6 pages- about 70 stocks
finviz.com/screener.ashx?v=211&f=ind_semiconductors,sec_technology
Small basket of semi/eqip potential trades


AEHR - also a potential swing - close to a breakout- Specialty testing...

Low limit orders - since the open will be a likely gap up- as seen on the bid/ask premarket.




Several limit orders filled- and several hit tight stops under the prior bar's low.
Tech as seen in TQQQ had a high gap up Open, now consolidating sideways- Small size on in TQQQ as it moved up from it's lows, had a hook signature that prompted the entry on both the Stochastic, CCI and +DI



soxl ENTRY WORKED- A BIT EARLY ON THE 5 MIN CHART- SOLD !/2 TO NET LOCK IN A SMALL GAIN- STOP MOVED UP TO bREAK eVEN - sEE WHERE THIS GOES TODAY-



i WAITED AN HOUR BEFORE RAISING MY STOP UP TO bREAK EVEN- MUTED Price action -barely eeking out a gain....

SOXL @ 11:17 pulling back- Will the Stop just above my Entry cost hold or see it get triggered?


TQQQ weakens, breaks the uptrending ema- hits my stop at Breakeven.


The early stop on TNA was prudent-


SOXL- let's see where this goes down to... Speculate that $23.00 prior lows, possible to be viewed as a ' support' by traders following this...
but I jumped back in on a green bullish elder bar moving higher- stops a bit too tight I suspect.
i.imgur.com/QJt3HLM.png


rE-ENTRY


TOYED AROUND WITH SETTING 2 STOPS- ONE UNDER THE BASE AND JUST BELOW THE ENTRY- THE OTHER 1/2 i LOOKED AT THE 5 MINUTE 34 EMA- AND GAVE THAT A SHOT-
As eweakness became evident on the 3 minute chart, the tight stop triggered, and then the 34 ema stop triggered-
This takes out and negates my earlier gains - The inability for SOXL to make a push above the 11:00 high- it sets up a bearish perspective for me for the day.



long on the SQQQ into the Close



Had hoped for a higher push- Raised stops to get a small gain- planned to sell @ mkt on a final Price bar move to the upside @ 4:59- but it reversed to take out the stops.
Nice net gains in the IRA with TSLA, F, PYPL all making net gains.

-

[sd]

5-31`-2023
Futures in the Red - likely affected by the debt ceiling compromise that is getting a lot of negativity from both parties-
Compromise and a passed debt ceiling is what we need right now-.
Fed pres Loretta Meister- says there is no need to pause the rate hikes ...C3AI reports tonight- but is Down -5% premarket.
ADV gives lowered guidance- auto parts -missed revenues.
Will this be the week that the AI momentum stalls ? I wouldn't be surprised.

A few of D's charts from the LB website- I've extended my membership there for 3 mos at a time-
D has noted he has 1 account for daytrading, another for swing trading- and sometimes holds TQQQ overnight on a swing- and other times not.
His preference is to take the long side- and that coincides with the bullish trend Tech mega cap tech has seen this year- except for that Feb month decline I charted a few posts back.


Yesterday TQQQ had a gap high Open- and what appeared to be 3 bullish bars -each going higher initially, until the 3rd bar.
D waited for late am- saw price come back into/close to the 34 ema and took an entry there- The MACD was downtrending, but above the 0.0 line although the histogram was clearly under the 0.0 line- What is the distinction of an MACD line that is above the 0.0 and the histogram below that may be potentially bullish? The fast MACD line crosses the 0.0 line 12:30 On his 1st entry- and waiting- and did not take an earlier entry even though the stochastic made an upturn @ 10 am..... Price moved higher initially from that Entry, went back above the fast ema, and then rolled over- He held and stopped out at his entry cost on that 1st trade- I assume he anticipated another bounce higher from the rising 34 ema.
Didn't happen this time.
The fast 8 ema broke below the 34 - the stochasic made an upturn intitially @ 12:15, but price continued lower- a 2nd upturn, followed a traditional bullish bar move off the lows- MACD histogram below the 0.0 line but coming in closer- Trade 2 saw Price move back up higher , above the 34 ema- but the momentum turned South and he exited at his entry cost.
So, that's 2 trades- out at Breakeven.
Trade 3 Price made a reaction move higher after a sharp drop until 2 pm. Stochastic made the early upside move on the green bar, followed by a 2nd green higher bar.
The MACD histogram made the 0.0 line cross on the bullish 3rd green bar. Also- not easily seen, the 3 ema had regained the 8 ema.
Price then rallied higher, moving averages above the 34 ema , but then price softens, drops back thru the 8, to the 34 and penetrates it.
He used that weakness to set the stop above his entry and to lock in some gain if price went back below that low again.




the Inverse had the more positive trend for the day:



today, I'll be considering the inverse funds initially as potential day trades- TZA,SQQQ,SOXS

10 minutes to go- Futures remain in the Red- so the inverse funds will likely have a gap up on the open-
Cannot watch all at the same time- will use the 3 min chart for today's perspective-





splitting the screen: 3 charts


long all 3
partial sell TZA


wORKING IN MY FAVOR @ 10 AM





aDDED 100 LOTS -IN THE CONSOLIDATION- BOTH STOP OUT FOR SMALL LOSSES-

Net profitable in all 3 trades- @ 10:50 indicators rolling over- original entries have sold-
using trailing stops with the overhead psar to see how well it works as a buy-stop.






11:30 am- holding 3 100 share positions in TZA,SQQQ, SOXL --sizing up a bit - Have MACD cross on SOXS,SQQQ, but lacking in TZA .
Will use psar for the trailing stop to see how it works out- may scale out a portion for gains though.



STOPS ALL GET TRIGGERED @ 11:50 +/-TOOK A LOSS ON THE LAST TZA entry -giving back some profits on the day
Curious why the MACD failed to make a move back to the upside - but it appeared to fore-tell the weakness.
I'll enlarge each chart here- Out of all positions with net gains in all 3-
scaling out of the positions seemed to be the best move- but if I had taken the initial entry and held - for example - The results -even with a stop @ the 34 ema - SQQQ breaking the 3 min 34 emaq- but the 5 min ema would be lower
Getting an initial indicator hook on several @ 12:00- but I want to see an uptick in the histogram...before jumping in again...


12:07 back in on the doji & 2nd bar. 12:06


Stop $22.98 looks like no initial follow through to my entry.
Will the Doji low hold?


Added 100 more shares on positive and early price action off the Doji low- however raised the stop-perhaps too tight?


Now that's the kind of move I was hoping for- !





allowing this to move down and holding the stop - just to see if this uptrend has legs- I -w-c-s- sold 1/2 on a trailed stop to lower the average cost of the remaining position potentially...This may go from being in the green with a gain into the Red...



12:53- now that's what I hoped to see- failed to scale out of the position though- Was busy annotating the TZA chart ...
given another move higher-fingers crossed- will sell into the upmove partials.




Heading for a MACD upside cross in TZA- I'm trying out the overhead trailing PSAR as a buy-stop entry level


TQQQ looking like a bottom is in place- potential move higher?



Ended up the day long TQQQ on 3 trades-
I scaled out on Trade 1 for a nice capture-
Trade 2 was jumping in despite it being in a sideways range- and the MACD negative- I was lured in by the sideways range that had developed and the green bullish bars- That trade stopped out for a loss-
Trade 3 went long just before the MACD had turned up during a drop lower- Caught some upside heading into the Close- and intentionally started to sell in 1/4 position sells and stops-
Raised the final 2 stops as Price pushed up in a bullish bar that ended up fading-

The charts that follow are the different TQQQ trades - Dr.D from Leavitt board Had made an early entry on the 5 min Macd cross- stopped out , and then re-entered-
Note that price was downtrending when he took the entry- and he noted about the 3rd signal- which I assume was the 3rd attempt for price to make a trend reversal.
He responded to me (Knewt1)at the LB board - which he expanded his approach versus what I had indicated.
To the LB board members- they share their charts, their thinking- and will answer questions...
Dr D is particularly good at sharing his experience- and will expand on those questions asked- Since I am basically taking a variation on his approach- and experimenting with the faster time frame, scaling out, and not necessarily following his path.... but that's part of gaining some experience.

Today was a bullish day overall. I sized up to 100 share positions as the day progressed. I had net total gains in almost all trades taken- with a break-even in SQQQ...
I have to admit- I think I particularly like the net effect of selling a portion of the position- just to lock in that initial gain- However, that will be dilutive to a big winning trending trade that makes a large % move over the course of the day.
That also boosts one's confidence- and the stop-loss is mitigated if one has a partial profit in the mix.

I almost pulled the trigger but hesitated at the 1st bar Low in SQQQ this am, and had to enter significantly higher- I need to try to get that better low entry- close to the P.O.F.
I copied a bunch of charts onto the LB board- hope these are not too mixed up: or repetitive.











As I gain experience in this time frame- I recognize that the bigger gains are made by holding for the duration of the day as long as the trend manages to continue to be uptrending-
The 3 minute chart is perhaps good for those earlier-but more frequent signals .

So, If I want to accomplish both - scaling out to lock in some gains and thus average my entry cost down lower- Entering with larger size- may provide that cushion-
How do I step up to use 100 shares or 200 shares .... on entry- Develop confidence in my approach is how-

some of Dr D's commentary -
Sign up for the free trial @ Leavittbrothers- ask a few questions of the traders- check out Jason's weekly swing trades..
Tell them Knewt1 sent you ....since I am copying from their postings here, the LB board is the source I'm finding has value.

[sd]

6-1-23
fUTURES LOOKING SUBDUED-

dEBT RECONCILIATION PASSED IN THE hOUSE- HEADING FOR THE SENATE-,


bEEN USING THE sEARCH FUNCTION AT THE lb BOARD GOING BACK TO 2016-

Talk about traders with a consistent approach! Rat, Devoid, Wolverine all members at that time , and posting very much charts the way they do today from my initial review.

I'm particularly interested in Devoid's style and ways he interprets price action and gets some early entries- as well as some losing trades -
Building a File of screenshots- What is interesting is how he will take an entry during a trend break /decline when the MACD 5 min cross- occurs- so I need to go back and review all those Feb charts I posted earlier to see how many of those could have worked relative to the losing entries-

I'll be setting up the same format- on the leveraged - may include the Dow 3x and inverse-
As seen in yesterday's trading- markets aren't trending- just sloppy and choppy.
A lot of Tech earnings are not meeting expectations- or are warning on guidance-
CRM- took a position into earnings- and although they "Beat" there are some concerns about future guidance- WEB bush upgraded and raised the price target and to a BUY-
I cannot stand a -5% loss- so, I'll see if this drop can rally after 10 am and then pull the plug or set the stop.....

So, I'll be looking at the signals from -Elder green bars, 3 minute MACD vs the 5 min MACD-
I would assume- that the 3 min MACD cross in a predominant uptrend is likely a good and earlier entry-
I see that D also uses the 5 min cross during declines-- On the larger time frames-
5 minutes to go;
GiddyUp!

I guess I've been posting charts in a prior thread? for 6-1-

It's been a good day, got plenty of screen time and a number of overall winning trades muntil my last load up on TNA w/200 shares- that stopped out for a controlled loss- but I've kept profitable on the day.... Left this afternoon to get the boat fueled up, and at 3 pm, prices are in a tight sideways range since 12:00-

Not going to watch the last hour- got to get the boat, tackle loaded up for a morning at the Lake tomorrow!
LOOK OUT FISH!
I may recap some of the trades this pm...
Lied- SOXL pushed out of the range and I enter3ed 3-o5- small incremental move- I sold 50 for a few $$$ gain- elevated my stop above my entry cost.

[sd]

rAISED TRAILING STOPS HIT- NET GAINS ON ALL 3 TRADES.


nO TIME TO INDIVDUALLY ANNOTATE-

WINNING TRADE AS TRENDS REVERSE BULLISHLY



bEEN A VERY BUSY MORNING- hERE @ 11 AM- TZA had dropped like a rock- went into tna.
Made a 100 lot buy and rtrailed it up with staggered stops- which sold except for 25-
Then added another 100 lot in this consolidation - @ 11:14 finally giving a green bar to perhaps rally higher-





Increased size in this buy-stop entry to 200 shares- the TZA is trying to make a base here- and the MACD is clearly not in play confirming this trade-
so, I'm giving the stop some leeway below the lower psar to start with.
I'm expecting that $29.75 should be a support level - and I'm slightl;y below.

[sd]

I see what I did today- had 2 pages open to this website apparently, and posted to both pages during the day-

DR D @ Leavitt brothers continues to generously post his charts with some of his thought process explaining the method and what are the nuances he views-

I was long the SQQQ earlier- and went into TQQQ late am-
I took on 3 positions today- not knowing if they's all move in lockstep or in a slow Waltz-
TZA,SQQQ,SOXS. - I had all 3 screens up on the large monitor- but in crimped and narrowed- format-
Went long in TQQQ late in the day-

Part of doing the homework is to review the trades made at the EOD- AS D points out- he held a full time job until recently, so his trade set ups generally allowed price some stop expanse-

Now that he is having more time on his hands- potentially getting more proactive in locking in gains on a decent up move-

Conversely, I've seem to be getting some success by selling into the momentum in partial sells- something I've taken from Ross - and it seems to be working- but requires quick reaction time relative to swing trading. I've also started to use a bit larger size on an entry- and also split the positions into quarters - with one qtr sold for a net quick profit on an up move- and then try to get the stops up to Break even .
Selling that 1/4 to net a gain- even just a relatively small move- does 2 things- It automatically gets a psychological "win" for that position- It also allows one to consider to raise and tighten the stops- perhaps close to break even- or to raise the stops on each of the remaining 1/4 positions to different levels-
Recognizing that a momentum surge is underway, and may not last for the day- allows the stops to be staggered as the upmove continues- perhaps separated by just $0.05 - As the move continues, the widest lagging stop gets raised higher and leapfrogs the other 2 stops that stay in place-
As I'm gaining experience in doing this, it becomes difficult to try to manage multiple positions simultaneously with raising stops on all 3 and varying signals.
Perhaps managing 2 positions would be adequate- or simply setting trailing stops for each 1/4 position- .
However, I have to acknowledge that while all of this frenetic and active trading and stop adjusting makes the day go by quickly- the best trade is the one that captures the largest % gain- and that is likely D's style trying to hold for the larger move over the course of the day.

lET'S DO SOME HOMEWORK - If this 5 min chart & MACD cross is a good approach- what will it take to be able to trade and hold this?
This Am open was in a decline- and price was below the emas. A bullish green bar preceded the 10 am 0.0 line Macd cross
aSSUME eNTRY A - $34.95
STOP $34.75- THE PRIOR BULLISH BAR OPEN- rISK $0.20 - tRADE WOULD STOP OUT- FOR A LOSS. -.57%

TRADE B- RE-ENTRY $34.90 - entry stop below the low of the bar was never tested-
If one used the 34 ema- Stop gets hit @ $36.00 for a net gain of $1.10 /$34.90= + 3.15% - prior loss -.57% = net 2.58% gain- with Risk controlled to be a small .57%
The Risk to Reward on this trade is 1:4 - just amazing .....

[sd]

ON SEEKING TO GET AN EARLIER ENTRY USING THE MACD HISTOGRAM W/PRICE ACTION
ALSO- POTENTIALLY STEP DOWN INTO A FASTER TIME FRAME-







Jobs Friday @ 8:30- a potential market mover-
Hope to be on the Lake by then!

I have been studying Devoid's approach and variations-
At today's premarket open discussion - MMOY provided me - Knewt1- a link to the PDF of the DEVO trading system -
A great document he compiled that helps to explain some of the aspects of the approach D has used for many years-
Go to
www.leavittbrothers.com and sign up for the Free trial - and access the link and password to the pdf file in the premarket message board on today's date.
If you are visiting here- go over there.... and give it a try-

[sd]

Sunday- A lot of yard work to do- but in a bit-allow the neighbors to sleep in

The DEVO system:

A systematic trading system developed by trader 'Devoid' at the Leavittbrothers website-
VERY much a "KISS" system - he uses only the stochastic, the MACD, and the price chart-
As I go back in the earlier search notes on the LB website- (You can back search by dates back to 2016- or refine the search to an author or subject-

Anyways, D developed the system- to take on Day trades while working a full time job .
He still applies the same system today for day trades- and apparently also swing trades----
A pdf file is available for a free upload -compiled by MMOY and is very well illustrated- Brief, but covers the essentials, with some added commentary by MMOY.



And , is still a member at LB- as are a number of the others that post there-and were posting back in 2016.as well.

So, check out the website- 2 week free trial- and jason's numerous Youtube teaching sessions-
Also, each week jason provides a commentary about market conditions, some 2 dozen or so potential swing trade set ups.
and he also has a Masterclass on the many aspects of TA he uses to assess a trade-

He goes into depth in each of the classes subject matter in videos with numerous chart explanations-
You pay for the masterclass- but have lifetime access to it as well- As with almost everything you view for a 1st time, not everything is retained on the 1st pass- so going back over various sections and reviewing -and comparing how that applies to your own viewing of the TA, is a great self-teach lesson.
WWW.Leavittbrothers.com

Because I am copying and posting charts from the LB website I think are of value to me, (and potentially to visitors here), I include the referral to the LB website so the reader can see for themselves what the website offers-
I'm a paying member- Hey give it a free trial- try for a month- and -if you find benefit, make money, improve your trading, get the discounted longer term memberships of 3, 6, yearly.
and- give the MINI trading class on Youtube a view- it's about 2 hours and just a small snapshot of some of the subject matter covered in the Masterclass- I've been trading for a long time, and a TA user- wish I had taken that course a decade ago-
Trading is both technical- and psychological- The technical approach can be defined- but the application is often very subjective- up to each individual to use as it fits their Risk tolerance and capacity for withstanding price volatility- I've learned I'm Risk adverse to the point where it has hampered my staying long in a winning trade- a common error made by myself and others to net that profit-

So, I now do some 'scaling out' - both on Day trades, and on swing trades- Look to sell into momentum- and particularly in very high climatic momentum... Ross at Warrior trading at Youtube illustrates this concept well-
And also scaling in on a position.

As with anything new- take it a bit slow at first, and slowly pick up speed and comprehension- and lessons-
A different approach not only applies a different set of indicators as a guide- but also may require a different psychological mind set to benefit from the system- and learn it's limitations......as well as it's benefits.

Initially I jumped in thinking I understood how obvious the DEVO approach worked- and , I reacted in response to what is normal volatility and I quickly sold -taking on losses- but there will be losers- but -in a trending market- the gains will significantly offset the losers...

Here's an example of D's 2 trades in TQQQ (His favorite go to 3x)
I try to analyze and follow his trades- and have to say, that he will withstand some volatility more than I am comfortable with- But, with his experience- and cushion of profitable trades vs losing trades, he has conviction in his system.

He starts with an overview of what the INDEX (NQ) did -premarket and in the prior days- That gives a sense of the likely trend continuing- or not...
As can be seen- he often does not wait for the actual MACD cross- and often gets in an early position- closer to the Low of the day- or morning open. He recommends however- to take the trade at least when the MA CD is making that 0.0 line cross. He also looks to the stochastic- for an early signal that is confirming the macd crossover.

The market OPEN is particularly difficult- because the price bars are often volatile and wide ranging....
Notice how D did not enter on the OPEN Thursday- as the MAcd WAS IN DECLINE- BUT THEN DID ENTER AS THE MACD LINE TURNED UP COINCIDENTALLY wITH AN EARLY UPTURN ON THE STOCHASTIC.

(let me interject here that AL BROOKS has a book out on Price Action bar by bar)

That entry -Approx $34.70 saw price move higher- but then come back and the MACD turns down- Price drops below his entry -cost- but he had an initial stop-loss below the prior Low made $34.40- From a Risk stand- that $0.30 Risk
represented a potial loss of approx .86% from the entry cost- and it likely would be as much as a -1% loss due to slippage.
Note that he made 4.4% gain on the trade- a 1:4 Risk :Reward return. Now, that's profitable trading!
He also moved his trailing stop from the 34 ema to a much higher stop as we got close to the Close at the EOD and price action weakened.
Now, this can be used as a lesson- for swing trading as well-
If you take an Entry- Know where you will take a loss if the trade does not proceed as you expect.
And- potentially plan to take some partial profits if Price breaks the fast EMA- or perhaps the 21 for sure...


iN MY ANNOTATED CHART BELOW-
Some things to point out-
June 1 entry- slightly ahead of the MACD cross- and used the prior swing low as an entry stop-
Price came back and went below the entry price- but did not reach the wider stop-loss.
a 2nd MACD cross @ 10:35 -10:40 BAR WOULD HAVE BEEN A GOOD ENTRY SIGNAL- using the prior lower red bar low as a stop-loss
$34.58.
Price trended well June 1- with strong momentum until the consolidation @ 12:50- where price came back to the 10 ema, and then penetrated through it . PSAR as a stop would have been triggered- and the reentry would be on the higher upmove
@ 1:55 .
The red bar Close below the 10 ema was a potential warning-but well above the 34 ema (blue line) .
The final red bar close that occurred below the 10 ema after a bullish push higher prompted D to raise his stop up as it was weakness going into the close.
Very nice gain on the day.

June 2 - Had a MACD cross but it was on a large gap higher open- Where D did not chase- and waited for a reaction pullback that occurred @ 10 am. He also refers to the level around the 34 ema as a potential point to take a re-entry- and it worked out here.

As I labeled the prior low red bars at the 34 level as the 'Point of Failure" on June 2 - Recognizing that your entry was close to that 34 ema, and these bars were lower- but very close, that provided confidence to take the trade entry-although the MACD was in a decline- The price went sideways for 30 minutes until the MACD finally initiated a cross at a higher price, 5 bars after the entry.

It's worthwhile to point out that waiting for the MACD to actually make that cross would have been a higher entry $36.70 vs D's low entry $36.15 - thats a $.55 difference or 1.5% in D's favor ahead of the actual cross on the MACD>
On this particular day, with the sideways price action - that made the entire difference between a profitable trade and a breakeven trade .

Also worth noticing- the MACD Histogram does a great job of being a graphic indication as to what price action that is not perhaps initially perceived- and the slope of the fast MACD line is directionally demonstrated in the histogram-




I don't have the time available to explore the price action on the faster time frame charts- such as the 3 minute- or 2 minute charts....that provide earlier signals-
For the moment let's stay with the 5 minute chart with only the MACD Histogram as a guide-
and we'll look at a sideways day that's ranging in an uptrend.

Key element- is that for Long trades- we would consider an entry on the 1st histogram reading that ticks back up closer to the 0.0 line.
1 day 5 minute Chart with Histogram -

INITIALLY This looks promising -
2 criteria are needed-
The Price action entry looks to enter on the 1st histogram bar that is ticking back up towards the 0.0 line from below.
This assumes a series of deeper-negative below the 0.0 line histogram bars has occurred.

Since this is a go-Long potential signal - the Criteria that potentially supports this is that the primary emas- the 34 & 50 aare upsloping and in proper alignment with the 34 above the 50.

A 2nd criteria may be that the stochastic is staying above the 50 line-

A stop-loss is required at the prior low of the preceding deepest histogram bar- (or deepest swing low in that histogram group)
If one waits for the bar to come to a Close- as seen in the 1st entry bar signal- the entry is well above the prior bar's high- and price volatility would take out the stop if tight.
Also, note that the histogram itself demonstrates a choppy up and down and then back up price action.
nOTE THAT THE MANY LATER POTENTIAL ENTRY SIGALS would result in mostly failed trade entries as the price was declining and then settled into a non-trending sideways