Entry Workflow for Daily Chart¶
A comprehensive step-by-step workflow for entering trades on the daily chart.
The Complete Entry Checklist¶
1. PVT Green¶
PVT should be green (sometimes could be optional depending on other factors).
2. Three Timeframes of NRSI Good¶
Check NRSI across 3 different lookback periods - all should be aligned bullish.
3. NRMSI (Momentum) Above 50¶
Normalized Relative Strength Momentum Indicator should be above 50.
4. BBT Black Line Above Zero¶
BBT black line above zero and in general looks good.
5. No Divergence on RSI Indicator¶
Check for any bearish divergence on RSI - there should be none.
6. Check HA Candles¶
HA Doji Warning
If HA candles show doji on previous day then it's dangerous. Use HA candles also as a confluence indicator.
7. My Indicator Flagging Entry¶
My indicator is/was just flagging entry - this should be confirmed.
8. Price Action Analysis (1-2-3-4-5 Spectre Style)¶
Check my price action indicator for trends, gaps, and reversal patterns:
| Number | Pattern | Meaning |
|---|---|---|
| 1 | Trend continuation | Bullish/Bearish continuation |
| 2 | Gap up and go | Strong trend |
| 3 | Min reversal (pullback) | Open within range but close below |
| 4 | Gap up and reversal | Trap / Bull trap |
| 5 | Inside candle | Consolidation |
Avoid Ping Pong
It shouldn't have too many mixture of gap ups, downs, etc.. (i.e. like 2, 3, 4 etc). It can have inside candles (5s) but not a ping pong.
Also look into gaps which are filled and not filled historically going back several weeks if needed.
9. Historical Analysis (For DTL Compression Trades)¶
Nasty Red Candle Check
For downtrend line compression trades, see going back several weeks if there is any nasty big red candle i.e. big 3 candle or 4 candle. (This indicator is also color coded).
Use it alone first by hiding all other overlapping indicators like NRMSI and NRSI.
For example, for a stock trying to break out of DTL and above 20 days MA, see if going long back there is some nasty red 3 candle. This will dominate the chart unless until broken.
10. Anchor Logic Consistency¶
Anchor Levels
Keep logic consistent. Any gap ups or gap downs or nasty 3 or 4 candles which are dominating act like anchors and that particular trend will stay intact until otherwise proven wrong.
For example: a stock could go up and that old long back 3 candle can act like resistance for a pullback.
11. CVD Volume Check¶
Also have a look at CVD indicator to see how volume is, in addition to my PVT, BBT indicators.
12. Weekly Chart Analysis¶
Weekly Chart Checks
On the weekly chart:
- Look at Bollinger Bands
- Do price action analysis
- See how much % has the stock already run
- Did it already run 50% and I am catching the top?
- Am I trying to tell myself I will be quickly in and out as stock will do a double top? Don't do this...
13. 3rd NRSI Confluence¶
Also the 3rd NRSI (50 lookback and 20 signal line) is a very good indicator in itself for entry and exit. Combine that also with my other analysis. This is a good position trade style indicator.
After a Missed Entry¶
Re-Entry After Pullback
Let's say I missed an ideal entry for a stock at DTL or Zanger U point or at pivot break. How do I know if it's still okay to enter after a quick pullback to 9 or 20 day SMA?
Additional Logic for Re-Entry¶
Strong Momentum Check: Ideally a strong momentum stock should not hit 0 NRSI on 9 lookback. Even if it hits it should quickly go back up.
Nasty Red Candle Analysis: Looking at my price action indicator (1-2-3-4-5 Spectre style), see if a nasty red candle on a stock (i.e. 3 or 4 number) has brought down NRSI down to zero or sometimes from 1.0 to 0.5 or below.
SPY Context: Also check SPY on that day. If that nasty RED candle came on a SPY up or sideways day then it's time to exit the stock. (See RKLB 02/01/2024)
Monthly Chart Analysis¶
Bear Market Detection
Monthly charts of IWM, SPY are fantastic along with all my indicators to study if we topped the market and will start a bear market.
Reference: https://www.reddit.com/r/RealDayTrading/s/a22ftK4TLo
Historical Stock Analysis (a particular stock)¶
Study the Cycles: Similar to stage analysis from stan weinstein and mark minervini
Study the historical bursts of a stock: like how many days it will burst up and how many days it will take rest. This is to get an idea of the cyclical nature of that stock. Look at the weekly chart.
The Big Picture¶
Narrating the Story
I think I am getting very good at narrating a story of stock movement keeping in my mind in my background that I essentially need to piggyback institutional traders using all above indicators.
Combined with Matt's Wisdom
I think my above knowledge combined with Matt's wisdom of:
- Reading markets
- Understanding fundamentals of a stock (analyst ratings, average price)
- Big market picture
...should be very good confluence of factors to swing or position trade a stock.
Deep and Extensive Trading Workflow¶
Media Sources¶
- Twitter: "Following" section
- amitisinvesting
- realdaytrading
- oneoption
News¶
- Yahoo Finance News
YouTube¶
- GeeksForGeeks
- FXEvolution
- TraderNick
- ClickCapital and other live/everyday shows
- amitisinvesting daily wrap up
- Matt's video
- Verified Investing
Analysis¶
- Studying charts
- Scanning for stocks on TradingView and also ZenBot