SPX Dow Day Trading - 20 Period MA continuation strategy

AndyB · 05-27-2009, 06:29 PM

Hi all, I thought I'd share a quick and easy strategy to day trade the indices. I trade the S&P500, the Dow and sometimes FTSE100 using Spread Betting in the UK. If you can't access futures/index accounts then you can also trade indices using leveraged ETFs in an equities account.

The strategy is simple. When a big move occurs, the 20 period simple moving average takes some time to catch up with the index. When it does, a strongly trending SMA "Pushes" the index in the direction it is going, causing a continuation. This is your short/long entry (depending on whether its an uptrend or downtrend).

Before

After

Boom! Easy money!

Just note I've seen this work intraday on 5min, 15min and 1 hour moving averages in uptrends and downtrends. The 1 min is pretty weak and will not give you much of a push but it should still be taken into account.

You should also note that this strategy can give more than one continuation as the index can repeatedly get pushed by the MA's, however after a few touches the index tends to overpower the average and get on the other side of it. If you haven't already, that's the time to exit the trade.

DanB · 05-28-2009, 08:00 AM

Hi AndyB, Did you post your usual quality, annotated graphs, with this as it'll really help to see what you have explained.

AndyB · 05-28-2009, 08:45 AM

Hi Dan, can you not see the graphs in the post above? I can see them on my computer.

DanB · 05-28-2009, 10:59 AM

it's working on my iPhone. Strange. I'm back at work later tonight and will have another look from their. It could have been my browser unless the images at not hosted on stock rants and the proxy filter kicked in. At least I can see the noted charts now. :). Good work

DanB · 05-28-2009, 03:10 PM

Yep, Darn Proxy filtering.... Your hosting the images from photobucket.com, which blocked from my corporate connection (good job I have another connection :)

05-27-2009, 06:29 PM	#1
AndyB Pro Charting Wannabe Join Date: Apr 2009 Location: Manchester Posts: 386 Favorites: $SPX GGG.L ARSLF Rep Power: 209 Reputation: 4467	SPX Dow Day Trading - 20 Period MA continuation strategy Hi all, I thought I'd share a quick and easy strategy to day trade the indices. I trade the S&P500, the Dow and sometimes FTSE100 using Spread Betting in the UK. If you can't access futures/index accounts then you can also trade indices using leveraged ETFs in an equities account. The strategy is simple. When a big move occurs, the 20 period simple moving average takes some time to catch up with the index. When it does, a strongly trending SMA "Pushes" the index in the direction it is going, causing a continuation. This is your short/long entry (depending on whether its an uptrend or downtrend). Before After Boom! Easy money! Just note I've seen this work intraday on 5min, 15min and 1 hour moving averages in uptrends and downtrends. The 1 min is pretty weak and will not give you much of a push but it should still be taken into account. You should also note that this strategy can give more than one continuation as the index can repeatedly get pushed by the MA's, however after a few touches the index tends to overpower the average and get on the other side of it. If you haven't already, that's the time to exit the trade. __________________ I am a junior investor/trader with less than a years experience, so weight my words accordingly. I'm using a stoploss at my break-even on SFEG. Production is delayed. Last edited by AndyB; 05-27-2009 at 06:33 PM..
	1 thumbs up / 0 thumbs down. Rate this post \|

05-28-2009, 08:00 AM	#2
DanB UberTrader Join Date: Apr 2009 Location: England Posts: 159 Rep Power: 92 Reputation: 1755	Hi AndyB, Did you post your usual quality, annotated graphs, with this as it'll really help to see what you have explained. __________________ I've been Gambling since April09, hoping to start share trading soon
	Rate this post \|

05-28-2009, 08:45 AM	#3
AndyB Pro Charting Wannabe Join Date: Apr 2009 Location: Manchester Posts: 386 Favorites: $SPX GGG.L ARSLF Rep Power: 209 Reputation: 4467	Hi Dan, can you not see the graphs in the post above? I can see them on my computer. __________________ I am a junior investor/trader with less than a years experience, so weight my words accordingly. I'm using a stoploss at my break-even on SFEG. Production is delayed.
	Rate this post \|

05-28-2009, 10:59 AM	#4
DanB UberTrader Join Date: Apr 2009 Location: England Posts: 159 Rep Power: 92 Reputation: 1755	it's working on my iPhone. Strange. I'm back at work later tonight and will have another look from their. It could have been my browser unless the images at not hosted on stock rants and the proxy filter kicked in. At least I can see the noted charts now. :). Good work __________________ I've been Gambling since April09, hoping to start share trading soon
	Rate this post \|

05-28-2009, 03:10 PM	#5
DanB UberTrader Join Date: Apr 2009 Location: England Posts: 159 Rep Power: 92 Reputation: 1755	Yep, Darn Proxy filtering.... Your hosting the images from photobucket.com, which blocked from my corporate connection (good job I have another connection :) __________________ I've been Gambling since April09, hoping to start share trading soon
	Rate this post \|

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Free Shares Trading Strategy	aim2high	Traders Lounge	0	05-21-2009 04:09 AM
Day Trading Rules	tman17m	Traders Lounge	11	05-12-2009 12:58 AM
Hypothetical Trading Strategy	david	Technical Stuff	10	05-08-2009 01:34 AM
Dooms Day	Temujin	Trend Spotting	10	04-29-2009 10:44 AM

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search