Savvy Super Trading System Guide

Savvy Super Trading System

Triple Screen Trading System Overview

This trading system uses multiple timeframes (triple screen) to confirm trades with higher probability of success. The system analyzes:

  • Market indices (SPY, QQQ, IWM)
  • Moving average slopes (8 EMA, 21 EMA, 50 EMA, 200 MA, VWAP)
  • Volume analysis
  • Market internals (ADD, TICK, VOLD)

The system categorizes trades into three types: A+, B, and C signals.

Main Screen Indicators

Index Status

  • SPY (S&P 500 ETF) - Green Label if current price is above the open, Red Label if below
  • QQQ (Nasdaq 100 ETF) - Green Label if current price is above the open, Red Label if below
  • IWM (Russell 2000 ETF) - Green Label if current price is above the open, Red Label if below

Technical Indicators

  • Buy "+" Label - Appears when conditions are true
  • Relative Volume of current candle
  • Moving Average Slopes:
    • 8 EMA Slope
    • 21 EMA Slope
    • 50 EMA Slope
    • 200 MA Slope
    • VWAP Slope
  • Signal Type: A+, B, or C

Market Bias & Context

Confluence is key! We want to see all indicators aligned (all green or all red).

Bullish Bias:

  • If SPY, QQQ, and IWM are all above the open (green labels) → Go Long
  • Moving averages (8, 21, 50 EMAs) stacked positively → Bullish Structure

Bearish Bias:

  • If SPY, QQQ, and IWM are all below the open (red labels) → Go Short
  • Moving averages (8, 21, 50 EMAs) stacked negatively → Bearish Structure

Mixed Signals:

Use market internals to determine bias:

  • Advance-Decline Line - Is it positive or negative?
  • Cumulative Ticks - Do they confirm trend direction?
  • VIX - Is it rising and above yesterday's close? (Bearish signal)

Example: If SPY and QQQ are both positive but less than 0.5%, while IWM is down 1%, check market internals to determine trade direction.

Trade Setups

A+ Trade Setup

Requirements:
  • 8, 21, 50 EMAs with positive slope
  • SPY, QQQ, IWM all green (above open)
  • Price above VWAP (green label)
  • Price crosses above 8/21/50 EMA zone

Volume Confirmation:

  • Volume > 100% → Take full-size position
  • Volume < 100% → Take partial-size position (less conviction)

B Trade Setup (Counter-Trend)

Requirements:
  • 8, 21, 50 EMAs all positive
  • BUT price is below the VWAP
  • Counter-trend trade aiming for a move back to VWAP

When to Take B Trades:

  • Market internals suggest flat or slightly bullish market
  • VIX is falling and not at elevated levels
  • VWAP as profit target is within acceptable range

Example: SPY with 8/21/50 cross to upside, VWAP $2.00 away from price. Trading Delta 70 options could capture half the move for ~25% profit.

C Trade Setup

Requirements:
  • 8/21 EMA Cross only
  • No consideration to VWAP

C trades are rarely taken. Consider them as "get ready" signals for potential pullbacks to the 21 or 50 EMA before returning to trend with an A+ setup.

Multi-Timeframe Analysis

1-Hour Chart (Trend Following)

Used for identifying longer-term trends (almost a week of price data). Key indicators:

  • RSI Laguerre Candles:
    • Blue/Green for bullish trades
    • Yellow/Red for bearish trades
  • Multi-timeframe RSI Laguerre Labels - Look for alignment in trade direction
  • 21 EMA Slope - Price trending above with green EMA for longs, red for shorts

Available timeframes in ThinkOrSwim: Hourly, 2H, 4H, Daily

5-Minute Chart (Trade Execution)

Used for entry/exit timing. Key indicators:

  • Multi-timeframe EMA Analysis (8/21/50 EMAs):
    • Green: Positive stacked 8/21/50
    • Gray: Mixed (1 or 2 out of 3 stacked)
    • Red: Negative stacked (50 above 21 above 8)
  • RSI Laguerre Candles
  • 21 EMA
  • Pivot Study - Shows previous high/low support/resistance levels and auto-draws intraday trend lines

Timeframes analyzed: 5-minute through weekly

Market Internals

Market internals provide critical context for high-probability trading:

Indicator Description Interpretation
ADD
(Advance-Decline Line)		 Measures market breadth (advancing vs declining stocks)
Above zero line = Bullish
Below zero line = Bearish
TICK Number of stocks trading on an uptick vs. downtick
Consistently positive = Bullish
Consistently negative = Bearish
VOLD
(Volume Differential)		 Volume flowing into advancing vs. declining stocks
Positive = Volume flowing into advancing stocks
Negative = Volume flowing into declining stocks

Market internals are crucial for building a trading bias and confirming the direction of zero DTE (0 Days To Expiration) trades.

Key Takeaways

  • Always use multiple timeframes to assess trade context
  • Look for confluence across indicators
  • Prioritize A+ trades over B and C setups
  • Use market internals to confirm your trading bias
  • Be intuitive about position sizing - go full size on high-conviction trades, partial on less certain setups
  • Always consider the broader market context before entering trades