From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed, OTC and Option trading in addition to all major Exchange Floor Executions. For a free trial to Kevin’s Daily Trading Report, please click here.
Commentary for 6/06/12
In the previous commentary I included some of the extended volatility band trading setups of actual trades last Friday when the SPX had a -2.5% mini meltdown, which was followed Monday by lower SPX lows to 1266.74 before closing at 1278.18.
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I have included some charts from 6/4 when the RST day trading strategy was the primary setup for the SPX, in addition to the XME and OIH, just to name a few that had RST setups in addition to being at volatility band levels, which is always a higher probability trade opportunity.
The SPX made the 1266.74 low, and that set up the RST when confirmed on the entry above 1267.69 The setup also had a positive 5 RSI divergence. In order to be an RST the pattern must have higher highs and higher lows with at least 5 swing points.
Both the OIH and XME were also RST setups, and at the -1.28 VB and -1.0 VB respectively, in addition to both of them having positive 5 RSI divergences.These are just a couple of examples of the many RST opportunities from Monday, but there were many others.
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