RSI 5/80 5 Day Chart Strategy

by Drake
(North Carolina)

I use many things I've learned from others, but this fits my goals. I trade with Zecco. And I use their streamer. I use the RSI 5/80 method, but with Zecco's 5 day chart. I also use the MCAD lower indicator and the upper indicator's moving averages SMA10 and EMA30 to know when its the right time to enter and exit.
Using all three of these indicators on the five day chart helps me in getting a good read on the stock, which usually never fails. For example this week, I used $6000.00 on WTSLA stock, which turned out not to be that strong. However, by using the above method, I was still able to squeak out $335.00, by making trades on Monday ($102.00), Wednesday ($130.00), and Thursday ($103.00). This was my limit for the week on this stock before violating the day trade rule. It didn't matter because on Friday, the Stock hit rock bottom.
I usually pick overweight stock that is bullish and run with it during the week. I usually have 3 or 4 that I used throughout the whole week.
But this goes to show that many of the methods on here work, even with a bad stock.


Comments for RSI 5/80 5 Day Chart Strategy

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Jul 14, 2012
Simple Swing Trading
by: StockHunter

Very good question regarding exits. I started by exiting when I was up 2% on choppy markets, and 8% on trending markets. I would sell half of my position when I hit my target (2% or 8%), then set a trailing stop using 1 ATR(10). Lately I have enhanced my swing trade strategy. RSI & MACD is a lagging indicator. I am now using CCI(5) only. CCI indicator is actually a leading indicator. My entries are earlier and my exit are clear cut. When CCI(5) dips below -150 using a daily chart, you place a buy-limit 1 cent above the day's high. Your exit is when CCI(5) reaches to 150 (I sell half). If you see a divergence, the better the odds. To short, do the opposite. Keep swing trading simple. Follow me on Twitter StockHunter (red bull), even on Facebook StockHunter-vs (red bull).

Jul 12, 2012
Stockhunter comment
by: Anonymous

Stock Hunter,
I can see that working on a chart, when do exit?
after rsi goes blow 30 again ?

Feb 15, 2012
simple chart strategy

It appears there is no comment from Drake since Nov 28, 2011. Here is what I understood. Viewing a daily chart, use RSI(5) and MACD (10,30). Buy when it reaches 80 line on RSI(5). NOW HERE IS MY EASY SYSTEM END-OF-DAY. Viewing a daily chart, use a RSI(5) and MACD Histogram (5,9,2). When stock dips below 30 line on the RSI(5)it goes in your watch list. Now, when MACD Histogram bars goes positive you place a stop-limit order above today's highest price (add 10 cent). This has a 70-80% winning rate. Follow me on twitter (STOCKHUNTER).

Nov 28, 2011
RSI 5/80 5 day chart strategy
by: Basri

Can you give a little bit information about strategy?
1- RSI (X) X=2 or 5 or 14 Which one ?
2- RSI(X) lower and upper lines ?
3- MACD and SMA10 and EMA30 interpretation? Some times they dont show agreement each other.
Thank you for your interest

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