Intraday Technique - Bouncing FIBO

I've developed an intraday technique which seems work for me. You can try also this technique, which actually simple but powerful and make sense.

This technique is a reversal trading type. The entry made is only in the first 2 hours after market open. What we're looking is a reversal made during the period. Sometimes we can have 2 reversal playing during the trade time (first 2 hours of trading time).

Playing this technique only need TOS Script from htttp://thinkscripter.com (TS_TradeZones) to help us identify the Hi/Lo for the trading timeframe.

The link is:
http://www.thinkscripter.com/2009/06/30/trade-zones/

I copy paste the script for you to save your time....

# TS_TRADEZONES
# http://www.thinkscripter.com
# thinkscripter@gmail.com
# Last Update 30 JUN 2009

declare fullrange;
input zoneStart = 1500;
input zoneEnd = 1615;
input type = {default NOTRADE, REVERSAL};
plot highBar;
plot lowBar;

switch (type){

case NOTRADE:
highBar = if secondsTillTime(zoneStart) <= 0 and secondsTillTime(zoneEnd) >= 0 then highestAll(high) else double.nan;
lowBar = if secondsTillTime(zoneStart) <= 0 and secondsTillTime(zoneEnd) >= 0 then lowestAll(low) else double.nan;
case REVERSAL:
lowBar = if secondsTillTime(zoneStart) <= 0 and secondsTillTime(zoneEnd) >= 0 then highestAll(high) else double.nan;
highBar = if secondsTillTime(zoneStart) <= 0 and secondsTillTime(zoneEnd) >= 0 then lowestAll(low) else double.nan;
}
highBar.assignValueColor(if highBar>lowBar then color.dark_red else color.green);
lowBar.assignValueColor(if highBar>lowBar then color.dark_red else color.green);
addCloud(lowBar, highBar);

Chart setup:

• 1 day 2 minutes
• DMI (14)
• Slow Stochastic (10,10)
• MACD (12,26,9)

The Rules :

Entry

• CALL : Swing Low --> draw FIBO from High (the High bar) to Low (the Swing Low)
• PUT : Swing High --> draw FIBO from Low (the Low bar) to High (the Swing High)

Tips:
Entry is perfect when make new Hi or new Lo

Exit (Target Profit)

• Fibo Retrace 50% (if day range (high-low) above 2, you can use Fibo Retrace 38.2% or even 23.6%, consider DMI (14) indicators to have confidence of the trend strength)
  

Stop Loss

• 1 tick (1/16) from entry price
  

The figures are:




















Goldman Sachs (GS):

• Swing High
• Play PUT
• SS(10,10) : bearish cross in the overbought area
• MACD(12,26,9) : bearish cross above zero line

Research in Motions (RIMM):

• Swing Low
• Play CALL
• SS(10,10) : bullish cross in the oversold area
• MACD(12,26,9) : bullish cross below zero line

Enjoy your trading....

Strategy to Play....

I just play Buy Call/Put strategy....not spread strategy.

3 reasons for choosing this strategy:
1. Better Leverage
2. Better ROI (Return On Investment)
3. Better Money Management

For playing this strategy, I prefer Swing Trade & Trend Trade style.

Swing Trade I count on formation of the candles.

Trend Trade I use DMI (Directional Movement Index) to identify profitable trade.

My Trading Style - Intraday Trader

As an options trader, I've found that playing as Intraday Trader is my style. And become Intraday Trader needs 3 key success factors:

1). Be Discipline.
2). Be Patient.
3). Trade what you SEE, not what you THINK.

1-Be Discipline
Discipline with the trading rules that you believe can generate consistent profit. Of course we need to paper trade first (6-12 months) to find the perfect one that suitable for us to play in real account later.

2-Be Patient
Most of the time, during the market hours, we usually can't immediately find the right moment that meet our criteria. Don't get rush with this conditions. This need high patient attitude for success results as options intraday trader.

3-Trade what you see, not what you think.
We can search for market sentiment, latest chart performance, etc. But the most important when trade the candidates, we've to believe for what we see right now, price behavior that reflects from its price chart. Trade your plan. Don't get confused with what analysis or any other information that not affect directly stocks we choose as our candidate.

HAPPY TRADING