Looking for some aggressive short term trading ideas - any recommendations??

EthanR answered 9 months ago …

Go to www.stockcharts.com Look up some stocks and ETF's, and add the RSI indicator, along with stochastics to look for oversold stocks/ETF's that are about to turn up. The stochastic will usually be at 30 or below before it turns up, but most often it will be below 20. However, instead of using the normal (14) day RSI period that most traders use and is the default setting, take the (14) out and put in (2). When the RSI (2) is below 10, that indicates an extremely short term oversold stock/ETF. I have found that within two days there will almost always be a nice bounce back in that stock/ETF, and a very profitable short term trade can be made. Sell the stock/ETF when the RSI (2) goes to 70 or higher. You can make a little more money if you wait for it to reach 90, but you increase the risk, so put in stop loss order at the point when the RSI (2) reaches 70 if you want to wait for 90. Try it on paper first, and see how it works for you.

Conversely, if you like to sell short, do so when the RSI (2) is at 90 or better, and cover your short when the RSI (2) drops to 10. Again, I have seen this happen in only 1-2 days.