Introduction.
Hello everyone! My name is Reed Sherman, I’m an economics/finance student at the University of Texas and have been trading with Curt and the team for about a month now. Curt was nice enough to let me share some things I’ve learned, so here we go! This post will cover creative ways to use Tradingview to find more high probability chart setups and develop a better watch list.
There has to be an easier way, right?
I, like many of you, am working to build a small account (mine is probably smaller than most). Which means I must be very selective, even picky, about the trades I take. “A+++ trades only” in Curt’s words because you just can not afford to lose in a small account – it can be game over in the blink of an eye. So, the last few weeks I’ve spent hours and hours looking for A+++ chart setups with little luck. I have seen some A+++ charts during mid-day review (if you’re new to the group, my advice is don’t ever miss a mid day review. Important lessons learned in there every day) but a lot of them had played out already. So yesterday I was thinking – “there has to be an easier way to do this, right?” Sure enough, there is.
The Easier Way:
Click on the “screener” tab in the bottom left corner of Tradingview. This allows you to search through all charts that match whatever criteria you are looking for. To look for our basic setup (MA cross with price above) I used these settings:
- Simple Moving Average (200) below or equal to price.
- Simple Moving Average (100) below or equal to Simple Moving Average (200)
- Simple Moving Average (50) below or equal to Simple Moving Average (200)
- Average Volume > 200k per day
This gave me a pretty long list of stocks to look at and all of them were our setup. So I went through one by one, taking a quick look at the history of the chart (Liquidity, how they trade around the MA’s, etc.) and how the setup looked to me. I ended up with notes on 12 charts to watch (in no particular order):
$SMSI—Decent chart, lots of history, respects its 200. Pretty low liquidity but volume up recently. Trading 1.62. Price just breached 200 MA on the daily, 20 MA came through the 100 MA providing lift. MACD trending up, stoch RSI near the top, SQZMOM bright green trending up. Trading between the MA’s on the weekly – price just got over the 20 MA and tested the 50 MA. 100 and 200 MA’s in order above. Stoch RSI near top but trending up, MACD crossed up with tons of room, SQZMOM dark red about to turn green. Past earnings.
$NG—Decent chart, lots of history but doesn’t always respect its 200. High liquidity. Not the best setup but just got over the 200 on the daily and the 20 just crossed the 50. Stoch RSI near the top, MACD crossed up with plenty of room and SQZMOM just turned bright green. On the weekly, 50 and 100 MA’s acting as resistance but stoch RSI straight up, MACD just crossed up and SQZMOM just turned dark red, trending up. Watching to see if this one holds the 200 MA.
$PFSW—Good chart with history. Decent liquidity. Respects its 200 MA. Price just barely over the 200 today. 20 and 50 MA both breached the 100 and are just below the 200. May ride the 20 MA up over the 200 once it crosses. Stoch RSI, MACD and SQZMOM all trending up. Watching for the 20 MA to cross the 200. Natural resistance and the 100/200 MA’s on the weekly at 10.16 area. Could see up to 16.00 area if it gets through that.
$DRRX—Interesting chart. Not a ton of history but lots of symmetry and respects the 200. Good liquidity. Currently trading 1.54. Rode the 20 MA over the 200 and the 50 is approaching the 200. Stoch RSI at the top, MACD trending up but near the top and SQZMOM bright green. On the weekly it just broke through the 200 MA with the 100, 50 and 20 in line below. Indicators the same as daily but MACD has more room. Natural resistance at 1.88 area. Watching for 50 MA breach of 200 MA on the daily chart/over 1.88. Could see 3.00-3.50 range.
$PCO—Not the best chart. Decent liquidity and the tendency to gap (up and down) but respects the 200 and generally reacts well to price breaching the 200. This one got through the 200, came back and tested twice before losing the 200 and now regaining it. MA’s in line below the 200 with the 20 about to breach the 100. Stoch RSI near the top, MACD crossed up with plenty of room and SQZMOM bright green. Completed bowl could see it up around 15.00 if it plays out.
$WETF—Good chart with history, high liquidity. Just got over 200 MA on the daily, 50 just breached the 100 and the 20 is testing the 200. Has used the 20 MA as support on its way over the 200. Stoch RSI trending up, MACD neutral and SQZMOM just turned bright green. Resistance from the weekly 100 MA above at 12.28 and 200 MA at 13.85. Completed bowl would take it to the mid-20’s. Watching.
$THC—Decent chart with history, tons of liquidity and respects the 200. Trading 19.09 just over the 200 MA. 20 MA is crossing the 100 MA and the 200 is swooping down pretty steep from overhead. Stoch RSI trending up, MACD neutral and SQZMOM bright green. Resistance above at 19.55, 25.91 and 37.33 in the form of the weekly 50, 100 and 200 MA’s. I’d like to see the 20 MA breach the 200 on the daily with price above resistance at 19.55. Completed bowl could see anywhere from 30.00-60.00.
$WEAT—Not a ton of history here but generally respects the 200 MA and recently breached before coming back to test. 20 MA sitting just under the 100 and 200 MA’s. Stoch RSI trending down, MACD just crossed down and SQZMOM dark green. Watching for stoch RSI to turn up at the bottom, the 20 to breach the 100 and 200 and the MACD to cross up. Unsure about this one due to lack of history/volume. Not much upside though, very slow mover.
$NNVC—Pretty good chart with history, but low liquidity. Respects its 200 MA and has gotten enormous lift when this setup has played out in the past. Trading 1.41, just above the 200 MA, riding the 20 MA for support. 50 MA is close to breaching the 200 MA. Stoch RSI is at the top, MACD is crossed up with room and SQZMOM just turned bright green. Jumped 130% last time this setup played out.
$RUN—Not much history but lots of liquidity and so far seems to respect it’s 200 MA. Trading 6.89 (+1.39 since breaching the 200 last week). 20 MA crossed up the 200 MA almost vertically and the 50 MA is starting to curl up toward the 100. Stoch RSI flat on top, MACD trending up fast and SQZMOM bright green but near the top. Trump solar wall play I believe. Really bullish chart, target at 8.00 by early August.
$RSO—Pretty decent chart, respects its 200 MA, decent liquidity. Same play, trading 10.18 just over the 200 MA. 20 MA just breached with the 50 just below. Gap-fill potential as well. Stoch RSI trending up, MACD neutral and SQZMOM just turned bright green. Resistance above at 10.33, 11.18 and 16.12 from the weekly 50, 100 and 200 MA’s. Have to watch the weekly chart as you play this one. Side note: was trading over $70 pre-2008 and just announced pricing of $377 million mortgage backed CLO’s…Watching this one.
$IQI—Healthy looking chart, hugs its MA’s but no idea on liquidity. Looks to be traded mostly by computers. Trading 12.83, rode its 20 MA up through the 200 as it comes down on a pretty steep slope. The 50 should cross soon and the 100 after that. Stoch RSI and MACD neutral, SQZMOM dark green. Over the 200 on the weekly chart as well but hitting resistance at the 100. Stoch RSI at the top, MACD trending up and SQZMOM bright green on the weekly. Slow mover, not a ton of upside in this one.
Close.
I know those aren’t all great stocks, but I was able to find and take notes on 12 stocks to watch in just a couple of hours. Instead of scrolling through endless charts or seeing what the gurus are talking about on twitter, I was able to spend a few hours breaking down charts that all have a chance to be what I’m looking for…. what we’re all looking for! Those A+++ charts that turn into A+++ trades.
Thank you all for reading and thanks to Curt for letting me share with everyone!
Reed