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My Trading Strategy for Using eSignal
I use eSignal in this example to establish
buy/sell signals on the NASDAQ 100, tracking the stock “QQQ.”
I like the way I can use eSignal to set up a spread between the
implied volatility of the NASDAQ 100 (which is tracked through the
symbol “QQV”) and the “QQQ” itself. I then
plot a favorite indicator of mine, the MACD, on the chart. I am
able to place a chart of the underlying “QQQ” right
next to my spread chart using the same indicator and get confirmation
of buy/sell signals.
 When
the trend of the spread is up, and the MACD is above the zero line,
this is bearish for the “QQQ.” When the trend of the
spread is down, and the MACD is below the zero line, this is bullish
for the “QQQ.”
Look for a major change in trend of the spread
that is also confirmed by the MACD indicator. Sell short the “QQQ”
when the trend of the spread turns up and the MACD is above the
zero line. Go long the “QQQ” when the trend of the spread
turns down and the MACD falls below the zero line. |
