Market Timing

Use the BSE 500 to time your trades to the market with Williams %R. Only establish new positions when one of the following conditions occurs.

Moving Averages: For long positions, the 10 SMA must be above the 30 EMA. For short positions, the 10 SMA must be below the 30 period EMA.

Williams %R: Set Williams %R at a 3 period setting. Oversold is less than -80. Overbought is more than -20

Long Positions: The 10 SMA is above the 30 EMA and Williams %R is oversold - BUY

Short Positions: The 10 SMA is below the 30 EMA and Williams %R is overbought - SHORT

Hourly Chart: Look at the hourly chart on the BSE 500 for bullish or bearish patterns.

Supplemental: Look at the VIX to identify extreme market readings.

Note: Only use this market timing method to establish new positions – not to exit positions. Trail your stops on individual stocks to exit positions.

Selecting Individual Stocks

This is for long positions only.

Trend: The trend is up with the 10 SMA above the 30 EMA. The stock is in between the 10 SMA and 30 EMA (Traders Action Zone). This stock is in a stage 2 uptrend.
200 SMA: The stock is above the 200 period simple moving average.

Pullback: The stock has at least 3 consecutive down days with lower highs.

Candlestick Pattern: The stock has a bullish candlestick pattern for today (hammer, engulfing, piercing), and/ or traded over the high of the previous day.

Hourly Chart: The hourly chart matches your expectations on the daily chart.

Earnings: The stock is not coming out with an earnings release within the next couple of days.

Support Level: This stock is trading at a support level.