Made a test trade on RIMM, shorted 100 shares at 153.44, covered at 153, made my lunch. The cover is not based on signals as you can see, it could go to 152.74 or lower.
Trending down, I see 150 tick chart works well on RIMM too, there is no noise on the buy/sell signals:
PT, Calculate possible trade on QID and QLD for today you might be surprised how much money you can make with day trade margin. It is easy to trade couple of stock then 100. JMHOP. Just my two cents, you are a very good trader. Use your talent wisely. Good luck. Farooq
Farooq, Thanks for the suggestion. I coudn't concentrate well on my trading for the past two days, I just think too much of other things, I need to calm down :-( I might give a try tomorrow on both. QID/QLD moves quite fast, maybe I couldn't handle its up and down, I had heart attacks when I trade NQ or ER2 in the past. You're right, many plays can be made on this today, each candle in the 15 minutes chart can make a play. Since the market is closed, and the price is the history, it is much easier and clear to see the chart at what happened, lol. I should do a simulating trade tonight and get a feel of it. Brought out the 15 minutes chart, indeed, if I trade, I might make two trades for the day. but I won't make much with 500 shares The trading strategy would be: (1) First, look at the trend, the trend is the higher timeframe stochastic indicator (copper line) and MAs, it is in downtrend, , it was trending down from 65% and had not reached the oversold 20% level, so plan short entry or buy QID. (2) When short timeframe stochastic (9) reached over 65% or when it started to drop, start the short entry. Hold on to the short position, I see it takes an hour HOLD to cover. The time to cover is when stochatic (9) reached 20% level. (3) Cannot use this 15 minutes chart to plan the exact entry/exit, use 15 minutes chart to decide to go long or go short. Have to use 5 minutes or lower timeframes to decide when to enter/exit. If buy/sell with this 15 minutes chart, based on the candle finish and confirmed signals, the profit margin is only 0.10 or 0.20 on these two short entries, with 500 shares, might make $300
I looked at this 5 minutes QID chart after the market close, it makes so much sense now to place some trades, but during the real-time, I guess it is not that clear So a summary of what could do to make the best trades today, can be a reference to what to look on making the right decisions. All trades are stress free, emotion free, fear free, worry free trades in 4x-8x speed simulation. (1) Looking for long trades since the stocahstic (35) is uptrend both on 15/5 minutes charts. Looking entry when stochastic (9) is below 35%. (2) Price is above the middle of the Bollinger band, price is above 20/34 MA, stochastic (9) dropped to 20%, stochatic (35) is uptrend is at 50%, it has room to go to 80%. (3) When the stochastic (9) starts to turn up or crossed D%, it breaks that downtrend line on the stochastic (9), start a long position, or wait for the BUY signal - see chart 2 and chart 3 (buy around 47.4 to 47.55, price is above previous low, bottom has been tested) : Chart 2: Chart 3: (4) Wait for the price goes to the upper Bollinger band (orange colored line), wait for the volume change indicator, or wait for the stochastic breaks the uptrendline, sell 1/2 positions and lock in part of the profit, see Chart 4, price is at $47.90. Chart 4 (5) The QID is trending and is trading above the upper Bollinger band, the price is below 12 HMA and another volume change indicator comes up, sell the rest of the positions. See chart 5, price is at 48.38. Chart 5: (6) the price dropped near 34 MA, stochastic (9) is at 35%, stochatic (35) is still uptrend, stochastic (9) is going up and breaks the downtrend line, buy signal is forming, take another long position at $48.34. See chart 6: Chart 6: (7) Volume change indicator at $48.46, exit. (8) Price dropped to the middle of the Bollinger band, stochastic dropped to 20%, downtrend line is being broke, so started a long at 48.27. See chart 8. This trade looks was a risky one, the price dropped to 48.10 after taking the position, could I take the $100 hit and hold on in real time? Maybe should wait for other indicators or shouldn't take this trade, the stochastic (35) is in red, or wait for other indicators to confirm the trade, indeed, the volume change indicator showed up at $49.19 and buy signal comes up when it moved up to 48.33: chart 8: chart 9: (9) Close the position at $48.54, this would be the last trade of the day. So how many trades I could make, guess how much I could make with 500 shares if I trade like this? Can I reach my goal without increase the size/risk? All could be trades:
PT, Assumption is trading on full margin or 900 shares, and when comfortable trading short side also. I trade on 5 min chart and take in consideration of pivot points, EMA, 3,8 with HMA 9 give better result. CCI 144 and RSI 14 with standard MACD also used in my trading. There are always chance of wrong entry I handle with 20 Cents stop, once position is profitable stop is break even+1 (my cost of buying and selling). Stop for QQQQ is 10 Cents. It is ultimately how you feel comfortable. I am sorry for your father in law, I hope he enjoy his life to full extent till last breath. Thank you very much for sharing your work. Good luck. Farooq
I am not very convinced with Emini and QQQQ, or QID, etc. tech. analysis since it is tagged and move in accordance with SP, Nasdaq; traders of these derivatives just trade according to the index's move; analyze these is equivalent analyzing all hundreds of stocks...... TA is more relevant and effective, JMHO, when focusing on one stock.
Actually, the tech indicator formulas have nothing to do with if the underlying stock or indicator is attached or related to directly to the SP or NSDQ. Everything moves for a reason, and tech indicators do not try and figure out the reason it is moving...such as being related to the SP / NSDQ. So, why the stock moves or if it is attached to something else is completely irrelevent. The tech indicators do work just as well. A good example is in the commodities market...take OJ for instance. The tech indicators cannot predict the weather, but we all know that farming industry relys on the weather. You can even apply tech indicators to the NSDQ, NYSE, S&P, or even the weather. They just show a pattern, but never tries to explain things. Hope this helps.