We’re all trying to predict the future here so one thing I came up with was this prebuy checklist. Please let me know your thoughts. - What is the direction of markets 50MA - if up plan to buy, down short. (For this example we’ll say it’s going up) - Pick a sector that has the 50MA also moving up. - Create a filter that scans for that sector for stocks that have good fundamentals so long-term investors are going to put their money in and hold it there. - Find stocks that have the monthly, weekly, and daily 50 moving average all going up. - Day trade those stock with a specific strategy To me, if the market is going up, the sector is going up, the stock is going up on the monthly chart, going up on the weekly chart, and going up on the daily chart…that should be a stock that has a good chance of going up for the day. Ultimately you could daytrade the stock for a bunch of consecutive days as long as all the items remain consistent.
You are describing a top-down approach. Find a best performing sector, then find the best stocks in that sector. For shorter time frames you want to get a faster moving indicator than the 50dma. Most traders will use an oscillator like RSI or stochastics for short term signals.
I agree with stockjoc oscillator's and you can add 10 day and 21 day moving average to judge the uptrend for shorter trend. Day trading should use 1 to 5 min candles and you should be good at the TA stuff and fundamentals are not important
