These contributions are from Mike Bruns, world class trader. Mike's clear thinking and clearly illustrated charts have empowered many traders to finally "get it". His generous sharing and teachings have helped me raise my level of trading by reinforcing the concepts of trading with the trend along with his knowledge of the bond other futures markets. Mike gives after market hours seminars for members, they are exceptional. My personal thanks Mike...NQoos
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9/30 Setup Aggressive Sell Conservative Sell Aggressive Buy Conservative Buy
Location: With the Trend
This section addresses 9/30 entry setups. These setups complement the MACD and REI setups. It should prove valuable to those who find the MACD or REI difficult to use or is not available in their software. Also those who focus their decisions almost exclusively on price bars should find it helpful.
There is a conservative and an aggressive setup for both the buy and the sell entries. The guidelines are straightforward.
SELL:
The 9 period exponential moving average (9EMA) must be below the 20 period exponential moving average (20EMA) or 30 period weighted moving average (30WMA).
The AGGRESSIVE sell entry requires a close above the 9EMA. A sell stop is placed one or two ticks below the low of the bar that closes above the 9EMA.
The CONSERVATIVE sell entry requires that a complete price bar form above the 9EMA. The sell stops are placed at or just below the 9EMA value.
BUY:
The 9 EMA must be above the 20EMA or 30WMA. I prefer the 30WMA.
The AGGRESSIVE buy entry requires a close below the 9EMA. Buy stops are placed one or two ticks above the high of the bar that closes below the 9EMA.
The CONSERVATIVE buy entry requires that a complete price bar form below the 9EMA. Buy stops are placed at or just above the 9EMA.
Generally, the safest or most reliable entries occur the first time there is a crossover of the moving averages. It also puts one in an early position to catch a trend if the swing reversal is missed.
9/30 Aggressive Sell | 9/30 Conservative Sell | |
Shown here are two setups. Numbers and arrows show when the setup actually occurs and the sell stops placed in the market at the conclusion of that bar. Point one is the first entry after the moving averages crossover. | Five entries are shown on the chart above. The number shows when the setup occurs and the arrow the bar the trade is entered. Number one is the first after the moving average crossover. There are four additional conservative setups as the prices work their way down. | |
9/30 Aggressive Buy | 9/30 Conservative Buy | |
In this chart, above, we show one entry. The number one is the first opportunity after the crossover. Buys stops are placed. However, it is not until the arrows price bar that the long entry is actually triggered and we are in the market. | In this example above of the conservative buy, the buy stops are place at or just above the 9EMA upon completion of price bar at 1. Entry occurs on the next bar at the arrow | |