A brief TA lesson for daytraders

Discussion in 'Technical Analysis' started by stock_trad3r, Jul 19, 2007.

  1. In the open look for signs of large holders dumping.

    If you see a large red candle that forms within the first 15 minutes of trading that erases most of the stocks earlier gains or puts it in the red, short it. The stock will likely go down even lower as the large holder liquidates more stock.

    For example a large red candle that forms at 9:32 is bearish. It doesn't matter if the market is in the red or not or if the candle volume is a lot or only average. This means a large holder is unloading at the open and he probably isn't done yet. This method only works on stocks that have medium volume. Typically 300K volume or less where a single large holder or holders can affect the price noticibly.

    Although I don't daytrade I have seen this set up so many tmie I though I would point it out.
     
  2. Thanks for the tip!
     
  3. Thank you for the tip. This setup has about 60~65% success rate based on back testing. Taking into consideration the slippage, noise in the price movement, and the commission, this is a break even setup as is. But with fine tuning, such as trading with the broad market or the underlying sector, this approach can lead to a profitable strategy.
     
  4. empee

    empee

    ats: what setup did you backtest this with? I'm using amibroker now and am interesting in backtesting some intraday ideas, but I haven't found a good source of a intraday data for amibroker that goes back for many years.
     
  5. I create my own routine in Matlab. It's more flexible. I don't backtest for more for than a year yet. Opentick is the next thing I will try to get more historical data.
     
  6. I love how a retard who didn't know you actually have to sell a stock to book a profit is teaching people about daytrading. Hence the reason no one takes this forum seriously.

    Do your dance stock_turder:

    [​IMG]

    For fuck's sake man, you used margin to buy $1,200 worth of BIDU...that was some funny shit.
     
  7. Actually it was $12,000 worth of bidu

    and why should I sell when my stocks keep going up? AAPL, rimm new highs :confused:
     
  8. Oh yeah, haha, my bad. My apologies. That stock is going to take a major hit dude, you're going to rue that one.

    Yes, never sell your stocks, never! :p