Chart Setup:
- Big chart
- Little chart
The bigger chart is where all of my analysis happens. From daily time frame down to 15 minute charts, it's all done on that chart. I use the smaller chart in the corner for keeping track of the trend in the index that I am currently following.
Indicator Setup:
- Volume
- Moving Average
- MACD/RSI
- YTD break even level
Volume is found on both charts. I like to have it there just because it's the other half of price action, but it doesn't have any effect on execution decisions. It is purely there so I know what is going on inside the candles. All entries are taken purely based on price action, trend analysis, and multiple time frames.
The moving average I use is the 50 day simple moving average. I have gone through 100 different moving average setups and this is the most effective. It keeps my mind focused on one trend per time frame and that is how I like it. If I could only have one indicator for the rest of my life, this would be it.
MACD/RSI are there for similar reasons I have volume. They are secondary indicators that have no sway on execution decisions but are good to have to see what everyone else is looking at, simply put.
YTD break even level gets into sentiment reading. I did a post on this you can find in the education section but basically it sets an atmosphere for the instrument to trade in for the whole year. I won't go into details here but it is important to my analysis. It gives more personality to each instrument based on how they perform for the year.
MACD/RSI are there for similar reasons I have volume. They are secondary indicators that have no sway on execution decisions but are good to have to see what everyone else is looking at, simply put.
YTD break even level gets into sentiment reading. I did a post on this you can find in the education section but basically it sets an atmosphere for the instrument to trade in for the whole year. I won't go into details here but it is important to my analysis. It gives more personality to each instrument based on how they perform for the year.
Quote Boards:
- Market list
- Watch list
- Stock list
The market list is on the left hand side and holds the indices, sectors, industries, physical markets (including volatility), and foreign markets that I follow. It is a must have to know the tone of the market for the day.
The stock list is all the stocks I follow across the sectors I trade. I don't have utilities listed there because to the extent I do trade utilities, I just use the sector ETF. Technology, discretionary, staples, industrials, healthcare, financials, materials, and energy are present though in that order. I know each stock in this list fairly well, some better than others based on the activity I trade in them. This list doesn't change.
Watch list is just the stocks I am most focused on at the time and they always come from the stock list. I have it separated into three sections; positions, long, & short. Positions are what I am in right now, long list are stocks I am looking to buy, short list is stocks I am looking to short.
So that's about it.. Take what you will from this
Trade well,
-Michael
