Trade Stock Indices

Indices Program

A crucial component of any trading plan is your formalized program. An indices plan serves as the systematic tool a trader utilizes to precisely define and map out every facet of their trading operations. A stock indices plan must contain a written system that the trader adheres to, incorporating trading journal rules alongside other trading mandates.

In this trading plan, a person will also write down the rules they will follow when trading in the trading markets.

Here is the trading program that you can follow form this plan

TIMEFRAMES

  • Main timeframe for trading is the H1.
  • Trading Signals are derived and generated on H1 time frame.
  • Trade Signals generated should be supported by H4 time frame.

4H

  • Trend-Lines (Support and Resistance)
  • 5 and 7 Simple MAs
  • MACD (12, 26, 9)
  • RSI (14) +Support & Resistance
  • Parabolic SAR

1H

  • Trend Lines (Support & Resistance)
  • 5 and 7 Simple Moving Averages
  • Stochastic (14, 4, 7)
  • RSI (14) +Support & Resistance
  • Bollinger Bands (20, 2)
  • Parabolic SAR

RULES

LONG ENTRY

1H

  1. Both MAs are moving Upwards
  2. Both Stochastics are moving Upwards
  3. RSI above 50
  4. Parabolic SAR technical is below price ( Support )

4H

  1. Both MAs are heading Upwards
  2. Both Stochastics are moving Upwards
  3. RSI >->50

LONG EXIT

  1. RSI generates a in the opposite trend signal
  2. Price breaks Support TrendLine
  3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

1H

  1. Both MAs are moving Downwards
  2. Both Stochastics are heading Downwards
  3. RSI value below 50
  4. Parabolic SAR is above the price ( Support )

4H

  1. Both Moving Averages are moving DOWN
  2. Both Stochastics are moving DOWN
  3. RSI value below 50

SHORT EXIT

  1. RSI generates a in the opposite trend signal
  2. Price action breaks Support TrendLine
  3. Parabolic SAR is hit (Trailing Stop)

TRADE ROUTINE

  1. Signals are generated using 1 H time frame.
  2. Signal to be executed immediately rules are met.
  3. Entry indices trading alerts signals should be executed during the day-time.

TIME OF DAY TO WATCH MARKET - Indices TRADING HOURS

Watch market during the day time when most trading online brokers and online brokers are open for trades. Use this to create a good Indices program.

The optimal hours for market overlap, which yield the most favorable trading times, occur between 8:00 GMT and 18:00 GMT, coinciding with the overlap of major indices trading sessions. Market Hours & Best Hours

indices program - best hours

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