Google, Daily & Monthly Charts. Massive, explosive!
What I like about trading is that I can take a long term perspective & trade accordingly without all the noise of intraday.
A few weeks back I was on a weekly chart of Google with a MACD & I saw that the MACD was flatlining. This is usually indicative of extended compression, squeeze and consolidation all meaning the same thing. So its also very highly likely that a breakout is looming.
So immediately on either side of weekly trading we of course have the daily and monthly charts.
Let's dive in on this massive long trade in google with a longer time-horizon and holding of the long position. I know, I trade CDF's mostly too. They don't always suit esp. longer term trades.
On left of screen is GOOGL D. The very top price-action is inside of Bollinger bands in the faint purple color. The green & red ema's are 50 & 200 & notice the golden cross marked with a green X (about 20cm to the left). We see where the D BB's have daily candles trending up and in an oversold spot.
Below on the D and in the middle is the RSI. Look at where only a few days ago the RSI pushed upwards over the red 30 oversold level. But wait, theres plenty more confluence. The sharp light blue line crosses the white/grey RSI moving average. Trading acrossing of the moving average is a great strategy on its own.
Below is the D MACD and i expect it to cross up during our Monday session and hold.
Quickly, right of screen I will let you find the confluences of the oscillators. Green X's are marked bullishly & a red cross down which results in a 96% move down.
MACD monthly underneath (without histogram) & my favorite at least for this HTM setup, look at that beautiful RSI crossing up. For over-extended sell-offs and O/E over-bought's, this sort of move above the RSI 30 level in conjunction with buying on the close of a higher candle will work just fine.
Sorry, a little long the presentation for the benefit of traders unfamiliar with HTF oscillators. They can actually get you into a trade faster but its best to pull the trigger when price action supports it which is usually not far away. I find a standard stochastic to be the best at getting into trades and out of but some say combining S, Rsi, Macd is overkill but unfortunately those traders are unaware that each oscillator gives a different trader experience, for eg. MACD traders with full knowledge will know how it can lag at getting you into a trade compared to stochastic's, however I think Macd's biggest strength is helping you to determine when to exit a position. For my followers I will do a video on this soon.
