7 Steps to trading Pay Day Cycle Reversals in AAPL & GOOG

Transcription

1 ! 7 Steps to trading Pay Day Cycle Reversals in AAPL & GOOG by Micah Lamar 7 Steps to trading Pay Day Cycle Reversals in AAPL & GOOG By Micah Lamar Disclaimer: This document is intended for educational purposes only. Stock and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stock and options markets. Don t trade with money you can t afford to lose. This is neither a solicitation nor an offer to Buy/Sell stock or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site/video/guide. The past performance of any trading system or methodology is not necessarily indicative of future results. Please consult your financial advisor before investing in stocks and options.!1

2 Micah Lamar The 7 Steps to trading Pay Day Cycle Reversals in AAPL and GOOG show you exactly how to find and swing trade around AAPL and GOOG pivots. Swing trading around pivots gives you the highest probability of success. In the following pages you will learn exactly how to identify high probability trades by understanding the natural cycles of a stock. In these natural cycles there are 7 common patterns we see when a stock begins to form a pivot. This guide will walk you through these 7 patterns and how to identify them so you can make higher probability swing trades. Each chapter includes valuable information and resources to support you in successfully choosing the right direction for your AAPL and GOOG trades. Trade Safe, Micah Micah Lamar Co-Founder and CEO AAPLTrader Social Network Support@AAPLTrader.com!2

3 ! 7 Steps to trading Pay Day Cycle Reversals in AAPL & GOOG by Micah Lamar AAPLTrader Success Formula The AAPLTrader success formula combines 3 elements together that help you find and trade around AAPL and GOOG s natural cycles and pivots. Trend Analysis shows us which direction the stock is moving and where the stock is in its natural cycle Confirmation indicators stack the probability edge in your favor giving you a higher probability of making money Strategy matching makes sure you use the best available stock or option strategy to make the most money with the least amount of risk. Strategy can be found Probability Stacking is a process developed by AAPLTrader that uses all three of these elements together to increase a trade s probability of success. Today we are going to talk specifically about the first two parts of the formula: Trend and Confirmation. This will help with swing trading AAPL and GOOG.!3

4 Step 1. A failure to make a new daily low is the first step in a bullish reversal. Notice the red candle above highlighted with the yellow arrow. Can you see the stock failed to make a new daily low? Also notice this happened in the past. Look 8 candles back and you will see it also failed to make a new daily low however the stock ultimately continued down.!4

5 Step 2. The second step is when the stock forms a reversal candle. The two most common types of reversal candles are bottoming tail candles and bullish engulfing candles. Step 1 and Step 2 are interchangeable and can sometimes occur on the same day.!5

6 Step 3. First green bar on the heikin ashi chart at the close of the day. Most of the time its clear what color the heikin ashi candle will close, however on more volatile days the heikin ashi can flip back and forth. This signals indecision in the stock. Step 4. First green bar on the MACD. This often happens when AAPL s and GOOG s momentum to the downside is starting to slow. This signals a bullish move could be about to start. Step 3 and Step 4 are interchangeable and can often occur on the same day like in the above example.!6

7 Step 5. The 5 DEMA crosses above the13 DEMA. This signals a pick up of momentum and a possible bullish move coming. Step 6. The 2nd green heikin ashi candle signals more bullish action. If the 2nd green heikin ashi candle goes above the high of the first green heikin ashi candle by 15 cents with AAPL and 1 dollar for GOOG then the bias at this point is bullish. Step 5 and Step 6 can often occur on the same day as in the example screen shot above.!7

8 Step 7. The MACD lines flip over and cross to the bulls. This is often the last thing to happen. This signals longer term bullish action. AAPL and GOOG both move up and down in these cycles. Most of the time they show us the above 6 steps before, during and after a cycle. Most cycles can last 4-8 days on average. Longer cycles can last 8-12 days, and super cycles can last 12 days -16 days or more.!8

9 Bonus: A longer term way of looking at momentum on 3-6 month swings is by looking at the 20 and 70 Moving averages and treating them similar to the DEMA s crossing above. The 20 crossing the 70 to the downside is a very bearish signal. In the chart above I highlighted the 7 times this happened in the last 5 years. Avoiding getting long during these periods ( or hedging) will save you a bundle.!9

10 Bullish Strategies Here is a quick list of 8 Bullish Strategies you can use during bullish pay day cycles. Notice some of the strategies are for neutral to bullish markets and some of the strategies are for very bullish markets. Please reference the Apple Investment Strategy Guide for more information on these 8 strategies. Download Free Guide Here > Apple Investment Strategy Guide!10