KC + KDJ + MACD +EMA + RSI

Overview:
This is a DAILY mean reversion trading strategy that uses Keltner Channels, a 10-period EMA, and the KDJ indicator to identify oversold stocks that are due for a reversal. The strategy scales into positions as price decreases. It can also be used for short trades when price is overbought.

Step-by-Step Guide:
1. Set up charts on Webull platform using daily candles
2. Add 20-period Keltner Channels with multiplier of 4 (upper band red, lower band green)
3. Add 10-period EMA (yellow line)
4. Add KDJ indicator showing only the K line
5. Look for price at or near the lower Keltner Channel band
6. Confirm K value on KDJ is below 5
7. Check there is 3 weeks to 1 month time distance from last touch of 10 EMA
8. Enter starter position size
9. Add to position in stages as price moves in opposite direction of trade, up to 6 entries total (we’re assuming we cannot predict the exact bottom, hence the need to steadily accumulate to get the best position
10. Exit trade when price hits the 10 EMA after entry
11. Trail stop loss to lock in gains as price moves up to 20-period EMA (KC Middle band)

Entry Signals:
– Price at or near lower Keltner Channel band
– K value on KDJ below 5
– 3 weeks to 1 month since price last touched 10 EMA

Exit Signals:
– Price hits the 10 EMA after entry
– Trailing stop loss hit

Position Sizing:
– Scale into positions, up to 6 entries max
– Starter size on first entry to put on risk
– Add size on each subsequent entry as trade moves in intended direction
– Example sizing: $100, $200, $500, $1000, $2000, $5000
– Adjust sizing based on share price – larger for higher priced stocks, smaller for penny stocks

Rules:
– Only trade on daily charts
– Require 3 weeks to 1 month between price touching 10 EMA
– Ignore trades without enough time distance from last 10 EMA touch
– Scale into winners more aggressively
– Stop loss if price breaks structure
– Can use for short trades when price is at upper Keltner band with high KDJ

Risk Management:
– 6 entries max per trade
– Use stop loss if price breaks structure
– Trail stop loss as price moves in your favor
– Avoid penny stocks which are more unpredictable
– Scale into winners, cut losers quickly