In today's chat, we discussed a new approach to looking for short-term reversals, manifesting as local maxima and local minima on price charts.  We took advantage of Heiken Ashi candlesticks to create a system of cascading Bollinger Band crossovers that use a Flag study to judge reversal points within the scope of a longer term trend.

In today's chat, we spoke about some other ways to look at trend by considering Linear Regression Slopes.  The main problem is that the scale of these slopes vary according to the price level that the underlying instrument is trading at.  There's actually a very simple technique (explained in the video) that can be used to put these slopes "on the same level".  This is a very simple form of normalization where the values are adjusted to a common factor of 100.  By doing this, you adjust the values so they are all proportional to one another.  It's important to note that this is only one for

In today's chat, we discussed a Trend Reversal Setup, which is based on a short term trend of 15 minute candlesticks followed by a hammer pattern signal.  Attached are the original "Trend Reversal Setup" strategy and my slight modification ("Trend Reversal Setup B").  The logic of this strategy is quite simple, look for:

1.) A three period downtrend based on descending (OH+L+C)/4 values
2.) A Hammer Candlestick Pattern
3.) Price to close above the high of the Hammer (the confirming signal)

The strategy developed in today's video session has a relatively simple premise:

"Looks for scalping-based short opportunities for stocks (assumed to be relatively consolidating) based on High being above the Upper BB and RSI crossing above 70."

The focus of today's chat was on creating a market-aware strategy that leverages opportunities based on underlying relationships between composite instruments, such as market indices and the stocks that comprise them, or Equity Tradable Funds (ETFs) and the symbols they consist of.

Today we discussed in detail the underlying mechanics of a Bollinger Band Squeeze strategy.  It's still one of my favorite indicators due to its simplicity yet timeliness in terms of opportunistic trade signals.  If you missed it, I encourage you to watch the chat under the Video Archives.

Today we discussed how to find hidden relationships between trading instruments by scanning for correlation.  Attached is the discussed strategy.  If you haven't seen it, I strongly encourage you to watch the video in the Video Archive, where I try to explain in down-to-earth language what Correlation is and how you can use it.  It's a powerful tool to have at your disposal to find underlying relationshipps that aren't immediately obvious!

The video explains everything in detail, but to summarize, I've included the following description in the exported strategy:

One trick that I've learned that has added tremendous value to projects I undertake is to leverege the power of simplicity. In this weeks chat, I discuss how to look for relationships between technical analysis studies.  It's the relationships, more than the formulas by themselves, that help you identify trading opportunities.  Some of these studies, like the beautifully simple but extremely useful MACD, incorporate this concept into the formula directly.

In today's video chat, I discussed how one can create an automated trading strategy based on a system of Bollinger Bands.  The idea is that you can easily use two different "speeds" of Bollinger Band studies to identify trend movements and reversal opportunities.

A Consolidation Breakout/Breakdown strategy was the topic of today's chat. The main idea behind this strategy is that it looks for periods of relative consolidation, then looks for prices to break out of its Bollinger Band range.  This idea presents a two-step scan that searches for opportunities for instruments that "decide" a price movement direction.  When using this strategy, you should also consider other market factors, such as the broad market direction.