Hubert Senters here.
Let’s take a look at the Dow. I am going to walk you through a simple process of fine and stuff that’s a shortable and then recognizing that and then taking action on that. So first thing I’m looking for a new close below the cloud.
Here’s one, two, three, four. You can do one close or multiple closes. I have now decided that the Dow is in a downtrend, right. Pretty simple decision. You could use the S&P, the Russell, the Nasdaq. And then this is going to be. We can’t really see it because I’m on a bigger screen.
This appears the long signal and this down here is the short signal by default. Obviously,I want to pick the short signal. This is just a 15 minute timeframe. I’m going to move this up here into the screen so that you can see what I am looking at.
Get a little ghost on my graphics card there so then what I’m looking for is a risk reward ratio that is favorable to me. So you can see there was a 9X trade and then two minus ones and then a 3X straight so that’s the type of stuff that I’ll look for in order to first identify a new uptrend or downtrend.
Right now, I’m focused mainly on the short side and then I will Intra-day trade stuff or hold it for a smaller term swing trade and be aggressive on the downside. I’m looking for good risk reward ratio so if I can risk one to make 9 risk one to make 3 point seven I’ll do it all day long. Ideally, I want to be above 5 but I’ll take 3 if I can if I can get it.
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Good luck. Hope it helps. Have a great weekend. And I’ll see you on the next video.
Hubert.
