Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders

Learn How To Day And Swing Trade Using Stochastic, MACD, Bollinger Bands Like A Pro

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Day Trading Tips

First Day Trading Tips

As a day trader, one wants to profit from the swing and position traders.  Indeed day traders want to know what swing and position traders are up to so they may profit from their trading activities.
For example a day trader must know when and where those traders are entering or exiting their trades.  Above all one will try to understand how they trade.
Similarly, scalpers will monitor day and swing traders.  At the same time, swing traders will check on both position traders and investors to time the best swing trading opportunities.
Truly, swing and position traders provide the fuel for the best day trading signals.  Consequently, it is fair to
say that day traders depend on those traders. 
Furthermore, the best day trading signals occur where either swing traders or positions traders are exiting or entering their trade. 

See chart below 

Second Day Trading Tips

Use hourly chart patterns that form near the daily chart key level as day trade setups, then implement different times frame day trading tactics.
Similarly use the following:
1/ Four-hour chart chart patterns near weekly chart key levels.
2/ daily chart patterns near monthly chart key levels.

Third Day Trading Tips

Have a list of ready-made high probability trading setups and trade them using a top-down trading approach.

Examples Of High Probability Trades

CCI indicator period fourteen displays a higher low near the zero line but the higher low is below the zero line.

Price forms a higher low after a bullish chart pattern.

Price forms a lower high after a double top.

Price forms a higher low after a lower high.

Fourth Day Trading Tips

Use the simple price-action structures such as
1/ Price breaks above and retests a key level as a bullish day trading setup before implementing a top-down trading strategy.
2/  Price breaks below and retests a key level as a bearish day trading setup before implementing a top-down trading strategy.
The best key levels are quarterly chart key levels but one can also use weekly and monthly key levels.

Fifth Day Trading Tips

Find best oversold and overbought day trading setups by combining momentum oscillators with the market geometry or Pitchfork tool.  Once one identifies those valid oversold and overbought trading setups, one must use top-down trading method.

Sixth Day Trading Tips

Use stochastic patterns and wave patterns as day trading setups and again apply top-down trading.

Seventh Day Trading Tips

Use hot spot trading zones such as the intersection points between the Andrews pitchfork tool and any horizontal key level.
Also use the intersection points between major trend lines and normal support and resistance levels.

General day trading rules

1/ Find a high probability day trading setup on a higher time frame.
2/ Switch to the corresponding signal time frame and wait for a valid trading signal.
3/ If the signal is in place, go to the entry frame frame to enter the trade at a low risk entry point using preferably a limit order.
4/ Manage the trade and set profit target.

Check out How to day trade
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Watch the video how to improve day trading.