Open Price Signal

Discussion in 'Strategy Development' started by Ares1, May 27, 2007.

  1. Ares1

    Ares1

    I decided to open this thread to get ideas from other traders while refining this strategy.

    I currently use the open price signal as my leading indicator.

    I combine this with price action and volume.

    My current criteria is:

    Active in pre-market
    At least 2.5% above the open
    Volume at least 100,000
    5 minute breakout as the signal
    1 minute for pullback
    Level 2 momentum for timing

    Looking forward to any comments - preferably good ones.:)
     
  2. Ares1

    Ares1

    On pullback, it would be nice to see the bid refreshing 100 shares.
    Bid and ask locking near the 0.618 fibonacci retracement.
    Green prints filling the tape (better if blocks are coming in).
    Level 2 moving counterclockwise (better if there's a green print executed higher than the best offer).
     
  3. Ares1

    Ares1

    Generally if I wait for all timeframes to point up, I would be trading with:

    level 2, Time and Sales, 1 minute, and 5 minutes = AX,Market Makers,Scalpers,Day traders

    15 minutes/60 minutes = Institutional Traders, Swing Traders

    Daily/Weekly/Monthly = Investors, Long term holders

    I noticed that when I bracket the 5 minute candle, sometimes the 15 minute candle's range (which should be equal to 3 5 minute candles) is within the 5 minute candle's range.

    Correct me if I'm wrong but based on the puretick video that I've seen (which was nicely done and am thankful to puretick for providing that video) the 15 minute trader's signal for a long entry is a break of the 15 minute high, the timing is an oversold stochastics of a 3 minute chart or an entry near the 0.618 fibonacci retracement.

    http://puretick.com/video/rangesetup/
    http://puretick.com/video/entry2/
     
  4. Do you know where to get that eSIGNAL script on the wesbite? Cant find it
     
  5. Ares1

    Ares1

    Sorry, I don't.
    Hopefully someone esle knows and will enlighten both of us.
     
  6. Ares1

    Ares1

    Another Strategy I'm refining is the Momentum low entry.

    Criteria:

    Active in pre-market
    At least 20% below the open
    Tanked
    Volume at least 100,000 shares
    Momentum low(panic selling/volume capitulation) at the end of the 1 minute move (after it tanked) near support.


    Support that I'm looking for is a 200 moving average or a cluster of the 60, daily or a weekly chart.

    I'm looking for rapid red prints in the time and sales (that eventually slows down)
    followed by a 1 minute higher high (instead of a new low)

    For my target,
    I anticipate a recovery rally towards the midline of the bollinger band.

    To save on commissions, I may hold the position watching closely for a slow descent with low volume from the recovery rally followed by an increase of volume that breaks the recovery rally's high.

    For my stop,

    It would be just below the previous low.

    For my Risk/Reward,

    Stocks under $5 = 10 cents risk/25 cents reward on 1000 shares

    Stocks under $10 (but above $5) = 20 cents risk/50 cents reward on 500 shares.
     
  7. Ares1

    Ares1

    Now that the criterias are in place, I will put it to the test by paper trading and/or putting some real money on the line.

    Please do your own Due Diligence.

    I'm here to learn and to get inputs from more Elite Traders.
     
  8. Ares1

    Ares1

    I just sent a message for help regarding the chat room.
    I entered a test message (it showed up on the chat window).
    The problem is, no one else is there (that I could see).

    Anyway, I guess I'll just have to use the message board for now.

    Gainers:
    LJPC currently is the most active I have (but has not reached the 15,000 shares I'm looking for so far.

    Here's what I have for the 200 moving average (set on low)

    Hourly = 5.49
    Daily = 4.43
    Weekly = 4.13

    Previous Day's High = 6.09
    Previous Day's Low = 5.55

    Previous Week's High = 7.06
    Previous Week's Low = 5.55
    Previous Week's Swing Low = 5.25
     
  9. Ares1

    Ares1

    LJPC didn't meet the premarket criteria:(
    Attached is a sorted Support/Resistance level from a combination of resources.
     
  10. Ares1

    Ares1

    Testing using the 15 minute range breakdown criteria.

    Note: This has not met the Premarket Active, and volume at least 100,000 criteria.
    I'm just testing if the 15 minute range breakdown could be a stand alone strategy.

    5 minute close below the 15 min range at 5.62
    5 minute candle opened at 5.64 = short initiated
    agressive stop = 5.70
    conservative stop = 5.76

    Support that needs to be broken:
    5.56
    5.55
    5.49
    5.38 (first target to produce a reward of at least 25 cents)
    5.28
    5.25
    5.19
    5.05 (2nd target)
    5.03
    4.84
    4.79 (3rd target)
    4.43
    4.13
     
    #10     May 29, 2007