Saturday, February 25, 2012

15m bounce setup looking for



This is one of the setups I noticed working from time to time. The ticker is CHRS from 02/22 to 02/23. It is a 15-minute bounce setup. The key is to look for the RSI divergence. The price is forming a double bottom or gradually flattened, but RSI is rising up but below 50 to form a divergence. The conservative entry is to enter next day early morning once the stock are showing sign of going up. Usually the upside momentum can only last for half an hour, then it may reverse hard. I think it is a good day trading method.

Another good example to show this is the AKAM in the past weeks. As it can be shown on chart, the setup is shown up on early day of 02/21, but the bounce is very weak. It gapped up then faded away to dive down. I think the intraday setup is not quite reliable. On end day of 02/23, the 15m bounce setup came once again. And this time it works. I guess it due to that AKAM touched the 20EMA on daily chart. Traders still weight a lot on the support on daily chart.



Another example in KBH


How to implement this in Telechart or TOS to find this kind of setups? In TOS, my implementation is as follows:

Lowest(rsiWilder(14), 52)<=20 and rsiwilder(14)<=50 and rsiWilder(14)>=40 and SimpleMovingAvg(close, 20) * SimpleMovingAvg(volume, 20) >= 250000

Some of these setups from the scan by Friday:
BRCM, VTR, TLAB, UN, EAT, CWH, ADTN

potential setup for next Tuesday or after (maybe):
MPC, ERF, CDE, WMS,

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