Panic Zone Trader

Discussion in 'Journals' started by ctrader, Jan 22, 2004.

  1. ctrader


    I'm going to stake out my journal here.

    Goal: Simple, swing trading strategy that generates a minimum of trades. Trade one stock only. Make 30% in 1 calendar year.


    1. Trade only SMH, based primarily on 60 min panic zone charts.
    2. Contain my risk at 1% of account size per trade.
    3. Only consider a trade when SMH has reach panic zone.
    4. Enter trade when major trendline on the 60 min chart has been broken.
    Stop is just above recent low/high.
    5. Use trailing stop based on intraday support/resistance formed since
    entering the trade. If/when the stock moves to the other side of the
    channel, become agressive with the trailing stop as the stock has a high
    chance of reversing from this level.


    I started trading already this year. First trade was a loss, stop out at 1% loss. Currently short SMH.

    02/01/2004 SMH 41.6 SHORT
    05/01/2004 SMH 42.08 COVER -1% account loss

    2004-01-13 SMH 44.9840 SHORT.

    Stop is above recent highs now, trailing it down as SMH makes lower highs.
  2. Ever considered to trade baskets? The advantage is that almost every day you get a signal. Usually, the performance increases and the risk is lower, too.
  3. ctrader


    what do you mean by baskets?

  4. ctrader


  5. ctrader


    Covered at 42.15.

    Going long at 42.15 stop is below yesterdays low.
  6. JohnK



    What's a panic zone and how do you play it? In other words, what's the decision making process to enter your trades?
  7. ctrader


    Panic zone is a chart offered by the, it looks like this:

    I am using the smh 60 min chart (available only to subscribers).

    The chart is created using spectral analysis projected back into the time domain so that we might see the cycles on the chart.

    When the stock moves to the edge of the cycle channel, i look for a trendline break.

    Simple eh :)

    I recommend signing up for the 30 day trial at the uptrend. Tell em ctrader sent ya so I get an affilate bonus :)

    From the uptrend site:

    Panic Zone Charts

    This chart lets us know when investors are either Panic Buyers, or Panic Sellers, (acting irrationally). This usually happens at market tops and bottoms. These charts help us get mentally prepared to change our personal market bias, as we can see in advance when the market bottom, or top, is taking place (click here to view). We have only considered when the market trades outside the bands of this chart. When this happens, we get prepared to react as the market gets ready to change direction
  8. The bands drawn with solid black lines look like Keltner Bands, but what are the dotted lines? Do they define the panic zone? What are they?
  9. JohnK



    OK, I checked it out and it looked interesting. So, I'm on the trial - and I did tell them you referred me to them - will follow your posts here and also let you know how I like the service. Are you in Canada or the US or? Your handle, ctrader, does look like "Canadian Trader"... right? Of course, it also looks like "Colombian Trader" and "Chinese Trader" etc etc :)
  10. XAU .... one you posted ended fall 03

    did not include the melt up :D
    #10     Feb 1, 2004