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Parabolic-sar

The Bollinger Bands are Squeezing the Juice out of GrainsSoybean short swing trade: The Bollinger Bands width has narrowed to 2.56% of price which is a level not seen in over a year. A new 6-month or greater low in bandwidth indicates that a volatility squeeze breakout is likely upon us. Similar volatility squeeze situations exist in wheat and corn but they both broke to the downside significantly last week. Wheat was -6.42% on the week, corn -4.21%, and soybeans lagged at -0.20%. Soybean price reached the lower parabolic SAR which is a signal to short the volatility squeeze. The stop loss is positioned at the upper SAR for this trade. A stop above the 20-day SMA would be more conservative. The overarching price pattern is a rising wedge with what appears to be a fake breakdown in late January. If we hold below the 20-day SMA it will roll over in 3 days. Wheat shows a similar setup already occurred a couple weeks ago but it was a head fake to the upside. There is risk in wheat being at the recent low pivot for the 3rd time. It could moon from here like gold did after making a triple bottom. Note the gigantic head and shoulders. Wheat: Gold: Note the lack of a Bollinger Band squeeze at the pre-moon triple bottom: Corn also shows a similar setup, but there was no head fake, it just broke down out of the band squeeze. Corn: Soybean Crush spread: It appears positioned for a big move in either direction. Seems likely to bounce back up in concert with a soybean drop. It’s in volatility squeeze territory as well. Oil: The mother of all commodities has an inverse head and shoulders continuation pattern suggesting more downside: tldr; short soybeans
CBOT:ZS1!Short
by Skipper86
2
Rising Wedge in Energy ETFEnergy stocks have been ripping all year , but now there’s a potential reversal pattern in the key sector ETF. The SPDR Energy Fund has made higher lows and higher highs since mid-May, but the lows have ascended more quickly than the highs. The result has been a rising wedge. That’s a potential bearish reversal pattern with highs failing to confirm the enthusiasm of the lows. Next, the Parabolic SAR indicator just flipped from a bullish reading to a bearish reading. Third is the Moving Average Distance indicator at the bottom of the chart. This Custom Script shows price’s distance from a moving average -- in this case the 50-day simple (SMA). Notice how it recently neared the top of its range. While this isn’t a definitive signal in isolation, it shows how Energy is out of step with the broader market. (The S&P 500 is 7 percent under its 50-day SMA while Energy is 9 percent above .) This may create the potential for some catchup to the downside. Finally, you have the level around $89.22 where XLE peaked in November 2014 before beginning a six-year slide. The fund’s failed breakout through this area could also suggest longer-term resistance remains in effect -- at least for the time being. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more. Important Information TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means. This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates. Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
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AMEX:XLE
by TradeStation
6
Using Parabolic Sars and Squeeze Indicators IntradayGILD - 3 min intraday chart. Indicators: Squeeze Momentum, Parabolic Sar, and VWAP These are new indicators for me, so I did this to help me to interpret and utilize them to execute an intraday trade. First, here is a brief overview of the Indicators used in this chart. The Squeeze Momentum Indicator is made up of 2 components: Graph Columns and Stars. The graph columns show the direction on the trend and the intensity. Bright Green is uptrend growing intensity. Dark green signals a loss of momentum and the reversal to the downside. Bright red is a downtrend growing intensity. Dark red signals the loss of momentum and reversal to the upside There are 2 colors of stars. Red is the squeeze. Grey is the release. When the stars go red to grey, it results in powerful move up or down depending on the color of the graph. Generally, you can enter a trade within 1-3 grey crosses, and exit a trade by 3rd red cross. Parabolic Sars is really simple. If the price is above the green dots, you can go or stay long. If the price is below the red dots, go short or stay short. VWAP: I basically use this as a line in the sand. Note: you could use moving averages, but I found that they just made it too confusing, and more difficult to read with no added benefit. The red and green boxes mark the entry and exits of the possible trades. Ok, so executing the trades. I skip the first 15 minutes to allow for a proper setup. At 9:45 we have a grey cross within the red graph, the price is below the red dot, and the VWAP, so go short At 10:33 we have the 3rd red cross and the the graph is dark red, so you cover. (Short 16 bars/48 min) At 10:39 we get a grey cross, so go long. (You could have a more conservative entry by waiting for the 2nd or 3rd grey cross). At 10:54 the price moves over the green dot. There was also a higher high, so you stay in. At 10:57 the price is rejected by the VWAP, and it is the 3rd red cross on the squeeze indicator. At 11:09 it is rejected again by the VWAP, it had a lower high, and we are now on the 7th cross, so it's time to sell. (Long for 10 bars/30 min). It continues squeezing until 11:39 when we get an explosive move up! It goes up over $1.50 in 1 candle. It blew though the VWAP, and price is above the green dot, so go long. Between 11:57 and 12:00 there is a small pullback, so you could take some profits, but there is no need to exit the position at this point. At 12:12 The graph changes to dark green (loss of momo), there was a lower high on the last bounce, and it is also the 2nd red candle consisting of mostly tail at the top, so it's time to sell or reverse your position and go short. (Long for 11 bars/33 min) At 12:15 you have either reversed your previous position, or you are entering a short here. You are on the back end of the move, you have a confirmed lower high, the price is blow the red dot. 13:12. A higher low was put in, and the dark red graph is getting smaller, so it's time to cover. (Short 20 bars/1 hour). At 13:18 a green dot appears blow the price, so you go long) or you could have reverse your short position 6 minutes ago depending on how aggressive you want to be). At 14:36, the graph is dark green and close to the midline, so it looks like it is just going to go sideways the rest of the day, close out the position, and keep watching it. (Long 26 bars/1 hour, 18 min). The red crosses on squeeze momentum indicator stayed for the remainder of the day, and the graph stayed near the midpoint, so there was no momo in either direction, so no further trades were made.
NASDAQ:GILD
by Stock_Warlock
3