See the previous S&P 500 Index Post for day trading rules and setups. TIPS FOR INTRADAY TRADING S&P. If you have a 9 to 5 job and you only have an hour to trade per day you can use our day trading S&P 500 strategy. Ideally, the S&P 500 day traders will be trading based on trading strategies that take a short amount of time. Now, because the market structure is fractal in nature, we can use the same S&P trading strategy for day trading. However, we’re going to add a simple trading trick. Day Chart In Up-trends price has the tendency to stay glued to the 3 sma high. In Down-trends price has the tendency to stay glued to the 3 sma low. If you pay close attention to the price action relationship with the 3-period SMA, you will notice two things:
During strong uptrends, the price has the tendency to stay glued to the 3-SMA high. During strong downtrends, the price has the tendency to stay glued to the 3-SMA low. With that in mind, we can now develop a very successful day trading S&P strategy. The entry and exit rules are the same, but to avoid the inherent intraday noise we’re only going to use the daily chart as a filter as follows: When the daily chart shows price glued to the 3-SMA high, we’re going to switch to the 15 minute time frame and only take long trades. Remember that you need to exercise discipline and develop a successful daily routine that can fit into your schedule.
Final Words – S&P Trading System In summary, the S&P trading strategy is a trend-dependent strategy that can ride both bullish markets and bearish markets. If you’re an aspiring trader you can use our day trading S&P 500 strategy and take advantage of the intra-day volatility. To summarize, the S&P trading strategy has two main advantages: The daily volatility that appeals to traders. Broader exposure to the US stock market. Don’t forget you can always use the S&P trading system with other markets (stocks, commodities, currencies, and cryptocurrencies) just make sure you manage your risk and keep losses at a minimum. Last but not least, protect yourself and use a proper risk management strategy.
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