08/05 – ETF Trading – XLE, DIG

Wow – what a sell-off yesterday. We’re patiently waiting for our etf exit signals to trigger. XLE closed strongly lower yesterday. XLE is severely over sold and is due for a correction – notice that the RSI 2 is less than 1!

You might ask why we don’t have a “protective stop” on our trade. Years ago, Larry Connors wrote a report explaining why trading stops can actually hurt your trading returns. You can read more about this here.

So, our etf exit signals are triggered when the etf price is greater than it’s 5 day moving average, or – for a potentially larger gain – when the RSI 2 is greater than 70. We’ll be using the latter.

Follow the signals for XLE when trading DIG. Updated charts are posted below. All trades are at the market close. Please trade responsibly!

Join me everyday to follow these etf trading signals. All of the signals and strategies I use for etf trading are found in the book by Larry Connors: High Probability ETF Trading. His etf trading strategies have only a few rules and you’ll be able to back-test and apply the strategies to the next trading day. With easy to follow trading strategies, clear explanations, and years of tested results, there is no better place to start finding new trading edges than in High Probability ETF Trading. Get your copy today and be ready for the next trading session.

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