AAPL - Apple
Since the December 2013, Apple (AAPL) has formed a triangle pattern, squeezing the price now at the tip of the triangle in a narrow range between 526 to 535. Because of the symmetry of this triangle, the patter is neither bearish nor bullish. At the same time, the TTM-Squeeze indicator with four red dots the weekly and daily charts indicates that a dynamic move is just ahead of us. If triggered this move will likely push the price for 8-10 weeks in one or the other direction (i.e. about 8-10 momentum bars of the weekly TTM-Squeeze). At this time, we don't know in which direction the journey will go, but we might use the squeeze of the 30-minute chart as a trigger.
My personal scheme to enter the trade with a 30-min trigger follows the rules:
1) The 8 EMA (green line ) needs to cross over the 20 SME (red mid-line of the Keltner Channel) in the 30-min chart
2) The 30-min candle needs to close above the swing high 533.75 (long) or below the swing low 526.33 (short)
3) The TTM_Squeeze needs to have fired after the close of the 30-min bar (one green dot after a series of red dots) with either a blue momentum bar up (long) or a red momentum bar down (short)
German DAX - FDAX
As covered in this blog on Thursday March 6, 2014, the German DAX (FDAX) was setting up for a bigger move with multiple squeezes in place. In addition to a daily squeeze, the chart also pictured 2-hour, 30-min and 5-min squeezes. The expectation was that a larger move would occur.
Have a look at the chart today and compare it to the post of 2014/3/6 (The grey areas of the chart indicate the time of the earlier post). It is clear that all three squeezes on the charts (see "Sq" in the indicator below) fired one after the other, resulting in a 300 point move south of the DAX. The five minute chart on the right shows only a small portion of that move so that one of the frequent 5-min squeezes could have been used trigger to enter into the large move. When entering in the trade, the TRIX and MACD indicators help finding the direction of the squeeze momentum.
German DAX - FDAX
The German DAX (FDAX) is setting up for a bigger move with multiple squeezes in place. In the chart you find the 2-hour, 30-min and 5-min squeeze, but there's also a two-day old squeeze forming on the daily chart. The 30-min chart indicates one possible outcome for a move after today's ECB-decision at 13:45 CET , but a breakout in the opposite direction is equally likely. My approach here is to use the 5-min and 30-min squeezes as trigger to then ride on the 2-hour and daily momentum of the move.
Baidu - BIDU
Baidu (BIDU) has been coiled in a weekly squeeze for the last seven weeks. Yesterday it also entered into a 4-hour squeeze that might fire today or within the next few days. This four-hour momentum could be used as a trigger for the expected longer-term move from the weekly squeeze. Fibonacci targets are 185 and 190. Additional support comes from seasonality, which indicates that Baidu favors the upside during the months March through October (see T. Bopp at traders-mag)
