eSology

Based on one watch list and two intraday charts.

CHART TIME PERIODS 1 minute 2 day, 1 minute one day, 3 minutes, 5 minutes, 10 minutes, 15 minutes, 30 minutes and 60 minutes of which ONLY 2 CHARTS NEED be up at any one time! In standard use, and after a few minutes past the open, we usually have our main chart and another chart next to it with the next smaller time period on it as a "warning system". we will probably be ending that practice, as it doesn't seem to be needed at all !

CHART INDICATORS: ema 9, ema13, pivot points and prior close.

INDICATORS trix, fisher transform, momentum, RSI, Williams R%, CCI with histogram. not necessary, but often visible as the online chat is presently experimenting with the elliot oscillator, MFI and bressert dss as adjuncts or replacements for the RSI indicator.

INDICATOR SETTINGS presently, only one indicator --- Momentum --- has multiple settings for the multiple time frames and these settings and time frames MUST always be adhered to!

01 minute through 10 minute -- 25/20 9:30 am (est)
15 minute -- 25/20 from 12 noon.
30 minute-- 12/10 from 2 o’clock
60 minute -- 6/5 from 3 o’clock

trix 3/5
fisher transform 6/4
Williams R% 10
RSI 6/1


the "classic" method is an easy going trading system based partly on the general 3 day rule of stock rallies which states that one NEVER buys on day 3 of a stocks rally. day one and day two, but not day three ! (there will ALWAYS be exceptions, but on average we are SELLERS on day 3, not buyers !) it is a day trading system based on a stocks MOMENTUM, which has proven itself phenomenally reliable (since a stocks movement is basically just momentum and is what we use to guide us through a days trade.) and finally, it is a laid back, "buy one stock and see it through to the end of its movement", type of system ! it is slow and steady and brings consistent earnings in the 10 to 20% range daily, with amazingly low risk as long as the instructions are followed ! Additionally, it is really super at detecting what will be a gap up the following trading day !

Should you like to dash from stock to stock, taking MANY little bites and then moving on -- "scalping" as you go, the "rumpled" version is more the one you want !


ENTRY METHOD: we use the valchange% indicator to notify us of stocks that are moving strongly out of the gate and it gives this information by giving a numerical ranking to each stock! but valchange only tells us the stock is moving so we need to determine what day (one, two or three) this movement is taking place on. for this, there are two additional charting packages on qt --- "historic charts"(by Prophet) and "big charts" and normally we quickly look at the "historic charts" and count the dark OHLC bars prior to today’s action. if there are no previous bars, or only one, we check to see how much "headroom " or room available for the stock to move UP before it hits resistance there is by looking at the LINEAR REGRESSION CHANNEL to see how far the stock can move upwards, and we very quickly check the Williams R % indicator to see if its pointing up ! (no numbers, no nothing --- just up) (the williams can be replaced by the Fast Stochastics at the same setting -- they both show the same movement and the FS has a SIGNAL line, which the williams does not have)

IF IT IS DAY ONE OR TWO, AND THERE IS UPSIDE ROOM AVAILABLE BEFORE THE STOCK HITS THE TOP LINEAR REGRESSION LINE, AND THE WILLIAMS OR FAST STOCHASTICS POINT UP, WE BUY THE STOCK AS SOON AS THE INTRADAY PPS CROSSES UP OVER ITS PRIOR DAY CLOSING PRICE AND HOLDS THAT PRICE ON THE BID !



the first top arrow shows what position the stock was in yesterday. notice how much room is available for it to go up before it hits the blue line (top of the LRC). and the second top arrow shows what it did the day we traded it ! the third lower arrow is pointing to an ascending directional indicator, and while the system does not have to use it, i find it rather handy !


STAYING IN THE TRADE: with this system, the momentum indicator is the king. a stock in a good trend will show both the blue and red lines moving upward at approximately a 30 degree angle which shows very good strength. during the day, the blue line will move up and down with the flow of trading, but as long as its not crossing the red line and as long as the red line maintains its slope upwards, we remain in the trade --- this will take us safely thru temporary sell offs and profit taking and i have not yet seen one stock that it did not show correctly ! Even during all but the MOST VIOLENT shaking by the market makers, the momentum line will keep us on course, and during those rare times when it fails, we have the RSI as a final confirmation, but thats another lesson !

the "safe and sane" method of selling comes when one of either the TRIX or the FISHER TRANSFORM turns down with its blue line crossing over the red, signal line or when the CCI "green blob" falls below its 1/2 point on the indicator panel. This is the first SELL signal and a safe place to exit as "normally" it is fairly close to the high of the day for the stock. if you exit at this point, and do it consistently, you will never be a bag holder again !

in the example below, BRVO had a sell signal at approximately 11:45 as shown by the TRIX and the CCI "blob" ! one could have easily exited here with decent profit or, with more experience and/or a day in the chat room, one could easily see that the MOMENTUM indicator did not so much as quiver, which simply means the stock was still strong and going to continue north after its temporary profit taking -- which it did ! additionally, adding to our security, the Williams R and the RSI both went on about their business with nary a burp, confirming that we could safely remain in the stock

IF THE MOMENTUM LINES ARE GOING UPHILL, THE STOCK IS GOING TO CONTINUE ITS RISE ---- IT MIGHT AS WELL BE WRITTEN IN STONE ! !




FOR TRADING SUCCESSFULLY THATS ABOUT ALL THERE IS TO GET GOING WITH THE SYSTEM AND HAVE A SUCCESSFUL TRADE ! IN PART TWO, ILL GO INTO THE SCALPING VERSION THAT PARTAKES OF A FASTER AND MORE NUMEROUS SORT OF TRADE !

Or download in pdf format THE HAND GUIDE!