day trading rules# Stock
U*f
1 楼
day trading rules
Gap(intraday) up/down rule: after the first relative big gap (for example, >
2p for ER2), there will be a small window (usually less than 10 minutes) for
trapped position to cut or for new position to setup, because most time
there will be another gap after the small window. Gap means MM's action.
Retailers cannot cause gap unless force cut loss.
trend line theory: when trend line break, will have big move. Either break
up or down.
extreme theory: market always go to extreme, and trend days usually close at
highest or lowest.
failed bounce/pullback theory: a failed bounce will break previous low. A
failed pull back will make new high.
round trip: market tend to do round trip. ER2 range usually>30p
11:00am spike: 11:00am(PST) program trading started to be active, usually
there’s spike up/down around 11:00.
AH extreme: AH futures tend to go extreme due to small volumn.
box range: futures most time move within a box. When the upper bound or
lower bound break, it move to next box.
neckline theory: for head & shoulder pattern, when neckline break, will have
big move.
retest extreme theory: a generalization of rule #2.
No average down or average up.
No short before see red bar, no long before see green bar.
No long on resistence. no short on support.
Early cut rule: when you first time feel panic, it's time to close position.
Dont wait to cut until you feel numb.
Early reversal theory: if up/down a lot in the first hour, there's big
chance to reverse later. This is the exception to rule #1.
For big news(such as FED, GDP etc), focus on market reaction instead of own
interpretion. When market goes to opposite to your analysis, give up your
interpretion and follow market.
Gap(intraday) up/down rule: after the first relative big gap (for example, >
2p for ER2), there will be a small window (usually less than 10 minutes) for
trapped position to cut or for new position to setup, because most time
there will be another gap after the small window. Gap means MM's action.
Retailers cannot cause gap unless force cut loss.
trend line theory: when trend line break, will have big move. Either break
up or down.
extreme theory: market always go to extreme, and trend days usually close at
highest or lowest.
failed bounce/pullback theory: a failed bounce will break previous low. A
failed pull back will make new high.
round trip: market tend to do round trip. ER2 range usually>30p
11:00am spike: 11:00am(PST) program trading started to be active, usually
there’s spike up/down around 11:00.
AH extreme: AH futures tend to go extreme due to small volumn.
box range: futures most time move within a box. When the upper bound or
lower bound break, it move to next box.
neckline theory: for head & shoulder pattern, when neckline break, will have
big move.
retest extreme theory: a generalization of rule #2.
No average down or average up.
No short before see red bar, no long before see green bar.
No long on resistence. no short on support.
Early cut rule: when you first time feel panic, it's time to close position.
Dont wait to cut until you feel numb.
Early reversal theory: if up/down a lot in the first hour, there's big
chance to reverse later. This is the exception to rule #1.
For big news(such as FED, GDP etc), focus on market reaction instead of own
interpretion. When market goes to opposite to your analysis, give up your
interpretion and follow market.
