Sobemark, start of a good thread. You have interesting methodology, and seems you are comfortable trading this style. Is it too much trouble for you to make a screenshot of your chart showing your trade? Because some of us don't trade equities and I can't see the trades you made. I hope to learn more about your style. Pretty interesting so far. Andy
here is another trade i did on AAPL volatility last Tuesday ... the first time i traded the calls (in the money so intrinsic value will match the movement of the stock) ... my only problem here is the execution at 6.00 ... only with 3 contracts filled ..(wanted 15) i will elect to trade options (always in the money) over the stock if there is more leverage .. OPENS 01/11/2005 12:21:22 AAQ AL AAPL Jan '05 @ 60.00 CALL BTO 15.000 7.50000 -11,250.00 01/11/2005 12:23:18 AAQ AL AAPL Jan '05 @ 60.00 CALL BTO 15.000 6.90000 -10,350.00 01/11/2005 12:23:54 AAQ AL AAPL Jan '05 @ 60.00 CALL BTO 3.000 6.00000 -1,800.00 01/11/2005 12:25:24 AAQ AL AAPL Jan '05 @ 60.00 CALL BTO 15.000 6.50000 -9,750.00 CLOSES 01/11/2005 12:26:49 AAQ AL AAPL Jan '05 @ 60.00 CALL STC -15.000 7.00000 10,500.00 01/11/2005 12:29:51 AAQ AL AAPL Jan '05 @ 60.00 CALL STC -18.000 7.10000 12,780.00 01/11/2005 12:32:21 AAQ AL AAPL Jan '05 @ 60.00 CALL STC -15.000 7.40000 11,100.00 (double dipping) Here i elected the stock 01/11/2005 13:46:24 AAPL APPLE COMPUTER B 1,000.000 65.69000 -65,690.00 01/11/2005 13:47:46 AAPL APPLE COMPUTER B 1,000.000 65.25000 -65,250.00 01/11/2005 13:50:42 AAPL APPLE COMPUTER S -1,000.000 65.75000 65,750.00 01/11/2005 13:51:31 AAPL APPLE COMPUTER S -1,000.000 66.03000 66,030.00 as you can see , my exits were pre-determined and early, however i was playing the correction into the channel and the retrace back to the 24 MA ... OSTK 01/11/2005 12:19:39 OSTK OVERSTOCK.COM B 200.000 53.02000 -10,604.00 01/11/2005 12:22:15 OSTK OVERSTOCK.COM S -200.000 53.70000 10,740.00 i wanted at least 1,000 shares here but only got the 200 fill .. mechanically, it was a decent entry..
i use realtick and was trying to import my charts ..however i am having a bit of trouble with the latest version and unsuccessful ... i will try an earlier version of realtick and try to correct the problem .. thanks for your comments
The gap-down-reversal on high volume, is a popular trading strategy, and the set-up occurs frequently. Overall, the probability for a successful trade is greatest when the reversal occurs in the direction of the overall market. EPIX (see chart) was another gap-down-reversal on high volume, but as I said earlier, its not my favourite trade: http://cbs.marketwatch.com/tools/quotes/intchart.asp?symb=epix&siteid=mktw&dist=mktwqn I'm a breakout trader. PKZ Friday (see chart) broke above previous day's high at 36.40 and slowly headed up, and followed through for a high of 37.48. A sweet intraday trend. But you must bet on it in the early breakout that the trend will continue. That's the risk, but with tight stops you will make more than you lose if you can pick them right half the time or better. http://cbs.marketwatch.com/tools/quotes/intchart.asp?symb=pkz&siteid=mktw&dist=mktwqn
thanks for the post ... i invite other trading methodologies to be posted in this forum, succussful or not.
MACD and RSI are secondary indicators i use to confirm the suggestion of a trend reversal ... look to the RSI even less ..but this can confirm overbought/oversold conditions ...
macd divergence? They work pretty well. I've heard of some people using macd to indicate trend.... I'm not sure how that's done.
My view on technical indicators is that there is the tendency to think that technical indicators can foretell what a stock is going to do. Technical indicators lag price and do not point to future price movement. If a stock is in an uptrend then rolls over into a pullback .30c off the high, I know that last price is now below the 8 period EMA because the 8 period EMA hugs the price curve. The EMA does not have to be there for me to know where last price is relative to the EMA. At that point I ask myself one question: I am up .42c above buy price. Should I take it and close the position or do I hold for more. I usually say take it (that's $840 on 2000 shares). I take it and the stock turns upward out of the pullback and does an additional 1/2 point. My heart aches a little - bad. That's day trading, and the EMA or MACD could not have told me to stay in because there was more to come. Chart patterns and intraday support/resistance levels are more critical to daytrading than technical indicators. Glad to see some stock traders on the board, it's mostly futures traders that's on here.
I second the notion for charts. I am trying to put the final touches on a method similair to yours that uses index futures. I look at a larger timeframe chart and look for the larger timeframe to be stretched into the outer bands and then go to a smaller timeframe for entry looking for price to go back to around the 20sma of the larger timeframe.