Volume Bar Buy signal in the Powershares QQQ

One of the key ETFs that traders monitor is $QQQ. As is the case with most charts that I review, there are often good simple approaches to creating a trade trigger approach.

As part of the Simple Approach series, let’s take a look at the Daily chart:

This is a chart that goes back to May 2012. The following is the Buy signal trigger info:

  • Buy the 1st Green candle after 4 Red volume bars in a row
  • Use a 2% stop
  • 4 triggers up to this point

For a Bearish slant on this chart, here is the Sell signal trigger info:

  • Sell the 1st Red candle after 5 Green volume bars in a row
  • Use a 2% stop
  • 3 triggers up to this point
  • The August & November triggers would of stopped out the next day (quick trades, small losses). The September trigger would have been the big winner, all the way down to the November lows.


Leave a Reply

Your email address will not be published.