During my mentoring session last week, we talked about how to address the first part of the GETM Trading process. When it comes to "Get The Trade", it helps to have a clear understanding of the Advanced GET Scanner.
When you are a futures trader, "Getting the Trade" is a fairly straightforward process; you have a select group of contracts that you follow, you follow only a few time frames, so those two aspects of your trading is pretty much handled. If on the other hand you are a equities trader, the choice isn't as clear. There are literally thousands of tradable stocks, each one with numerous time frames. With that sort of variety, it helps to know the tools in your arsenal to narrow things down.
The easiest way to locate good trading candidates is to first understand your goals. Do you want to trade with the trend or against trend? If you want to trade with the trend, think about the Advanced GET indicators that isolate trending markets. If I'm looking for buying opportunities in an uptrend, I'll first isolate the indicators that show me an uptrend, (i.e. XTL Blue Bars, Stochastic False Bars, etc.) Now it is simply a matter of playing with the time frames that are in line with the amount of time you want to be in a trade.
In the example below, I was looking for Stochastic NFB selling opportunities. I set the Main Filter to "Selling With The Trend". I am specifically looking for selling opportunities on a 15 minute chart therefore I set the time frame to the lowest amount of 15 minutes.
(Left-click on any of the images below for a full-view)
Now, I want to find a larger downtrend (meaning a downtrend on a longer timeframe) so I use the Xref field to isolate charts that are XTL Red on a 30-minute chart.
Now, as I go through the list of candidates, I can find Stochastic Selling opportunites on a 15-minute chart.
You can then begin to implement a bit of creativity and do this for both uptrending markets and downtrending ones. Look at different timeframes and use the same formula...
15 Min Buying with the Trend & 30 Min XTL Blue
30 Min Buying with the Trend & 60 Min XTL Blue
60 Minute Buying with the Trend & Daily XTL Blue
By going through this process, you'll begin to generate some solid trading candidates and find some very tradable opportunities with the domestic equity markets. Customize the price and volume filters to get stocks that fit within your personal parameters.
Trade Smart....
~Duane Gott
Scan Results: (RF)(AMLN)(BPOP)(SCNR)(FNF)(TASR)(APP)(STV)
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