Why I want to Buy Street Smart- Kindle edition

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This is one of the finest trading guide that you can get. Even the kindle version of the book costs you $150 whoa!!!

The book was written around 1995 and still valid. There are many techniques on how to trade the market but all the guidelines are based on the EOD chart. If the EOD chart shows a buy signal, we proceed to buy the stock in intraday above the previous high price. The book is written  by Larry Connors and “New Market Wizard” Linda Raschke

Always the previous day high price and previous day low price act as support and resistance

You will know how to do swing trading. Buy a stock today and hold for few days to make profit easily. Monthly you can get three to four trades like this. Everyone have their own idea of making swing trades and you learn a new method from this book called the turtle breakout or turtle soup trading ( I wonder why it is called turtle soup??)

How to trade a stock on the day of its result or during a major result day. Suppose there is an economic data or result coming out on Monday and how would trade the stock reacting to the news. You must identify it is a short term benefit news or long term related? once when you find that, you can place the stop below or above the resistance levels. 

Using ADX levels to find if the market is trending up or trending down. Know where to buy and where to sell a stock using ADX levels. The guides are very simple and simplicity always works. Wait for the stock chart pattern formation and trade better.

Using the ROC method, this is very effective and always use high volume stocks in your trading. Ordinary stocks with less volume won’t give profits. Look out for stocks have the huge volume and make profits. ROC is using two days OHLC values to find the right entry and exit. You must concentrate on the trend reversal patterns and that’s where you get more money.

Buy Street smarts – Kindle edition   

You can check out the Amibroker AFL that I created for the several strategies explained in the book.

2 ROC METHOD

_SECTION_BEGIN(“www.disciplined.trade”);
//street_smarts_2_ROC by Linda Raschke //Only Buy/sell signal
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat(“{{NAME}} – {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}”, O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, “Close”, ParamColor(“Color”, colorDefault ), styleNoTitle | ParamStyle(“Style”) | GetPriceStyle() );
x1 = Ref(Close,-2)-Close;
x2 = x1+Ref(Close,-1);
Buy = Cross(Close,x2);
Sell = Cross(x2,Close);
AddColumn(Close,”close”);
AddColumn(Buy,”buy”);
AddColumn(Sell,”sell”);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);
PlotShapes(IIf(Sell, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);

_SECTION_END();

Adding stochastics to the above formula

_SECTION_BEGIN(“www.disciplined.trade”);
//street_smarts_2_ROC by Linda Raschke //Only Buy/sell signal
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat(“{{NAME}} – {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}”, O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, “Close”, ParamColor(“Color”, colorDefault ), styleNoTitle | ParamStyle(“Style”) | GetPriceStyle() );
x1 = Ref(Close,-2)-Close;
x2 = x1+Ref(Close,-1);
Stochbuy = StochK(7,3)>StochD(10,3,3);
stochsell = StochK(7,3)<StochD(10,3,3);
Buy = Cross(Close,x2) AND stochbuy;
Sell = Cross(x2,Close) AND stochsell;
AddColumn(Close,”close”);
AddColumn(Buy,”buy”);
AddColumn(Sell,”sell”);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);
PlotShapes(IIf(Sell, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);

_SECTION_END();

The best is to try with adx formula (recommended)

_SECTION_BEGIN(“www.disciplined.trade”);
//street_smarts_2_ROC by Linda Raschke //Only Buy/sell signal
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat(“{{NAME}} – {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}”, O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, “Close”, ParamColor(“Color”, colorDefault ), styleNoTitle | ParamStyle(“Style”) | GetPriceStyle() );
x1 = Ref(Close,-2)-Close;
x2 = x1+Ref(Close,-1);
ADXbuy = ADX(12)>30 AND (PDI(12)>MDI(12));
ADXsell = ADX(12)>30 AND (MDI(12)>PDI(12));
Buy = Cross(Close,x2) AND ADXbuy;
Sell = Cross(x2,Close) AND ADXsell;
AddColumn(Close,”close”);
AddColumn(Buy,”buy”);
AddColumn(Sell,”sell”);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);
PlotShapes(IIf(Sell, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);

_SECTION_END();

MOC_whiplash method

_SECTION_BEGIN(“www.disciiplined.trade”);
//smart_street_linda_raschke_MOC Created by www.disciplined.trade
//We are looking for days when a gap in the morning is followed by a
//reversal in the afternoon. This reversal tends to follow-through the next morning AND
//often for the next few days.

SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat(“{{NAME}} – {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}”, O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, “Close”, ParamColor(“Color”, colorDefault ), styleNoTitle | ParamStyle(“Style”) | GetPriceStyle() );
Cond1 = Open <Ref(Low,-1);
dh = Ref(High,-1)-Ref(Low,-1);
Cond2 = C>O AND C>dh;
MOC = Cond1 AND Cond2;
Buy = MOC;
AddColumn(Close,”close”,1.2);
AddColumn(Volume,”volume”);
AddColumn(MOC,”MOC”);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
_SECTION_END();

using EMA – 20 method

_SECTION_BEGIN(“www.disciplined.trade”);
//street_smarts_2_ROC by Linda Raschke //Only Buy/sell signal
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat(“{{NAME}} – {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}”, O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, “Close”, ParamColor(“Color”, colorDefault ), styleNoTitle | ParamStyle(“Style”) | GetPriceStyle() );
x1 = Ref(Close,-2)-Close;
x2 = x1+Ref(Close,-1);
ADXbuy = ADX(12)>30 AND (PDI(12)>MDI(12));
ADXsell = ADX(12)>30 AND (MDI(12)>PDI(12));
Buy = Cross(EMA(Close,20),Close) AND ADXbuy;
Sell = Cross(Close,EMA(Close,20)) AND ADXsell;
AddColumn(Close,”close”);
AddColumn(Buy,”buy”);
AddColumn(Sell,”sell”);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);
PlotShapes(IIf(Sell, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);

_SECTION_END();

_SECTION_BEGIN(“EMA1”);
P = ParamField(“Price field”,-1);
Periods = Param(“Periods”, 15, 2, 300, 1, 10 );
Plot( EMA( P, Periods ), _DEFAULT_NAME(), ParamColor( “Color”, colorCycle ), ParamStyle(“Style”) );
_SECTION_END();

 

Use the link to download ADX AFL posted above and thank me later 🙂

 

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