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.