I don't disagree at all Spyder... a Max Pain analysis may be interesting though... I will try to whip something up in the next week if time permits
I look forward to seeing your results, as well as, any conclusions you might reach. I'm always interested in anything that might improve profits, or more importantly, reduce losses. - Spydertrader
GROW disappointed me today. I got a good Low Band volume signal, price improvement, stoch, etc. It ended up not getting anywhere near FRV by end of day so I dumped it for an $0.11 profit. I'm thinking I don't like GROW due to its low volume.
I'm still riding the IVAC horse. Now it's close to my buy point but with lower volume than yesterday. It is also within the lower part of the channel. I will wait to see what happens. I am patient. Thoughts are welcome, gooch87
max pain stats for some of the stock in DU on 4/19 Symbol Last Trade MAX PAIN CKCM 22.43 22.5 ENG 11.7 10 BNT 12.64 12.5 CNTF 14.6101 12.5 FMD 43.89 45 MTEX 18.38 15 NWRE 26.8 25 SFCC 23.33 22.5 The Calculator I used can be found: http://www.iqauto.com/cgi-bin/pain.pl There seems to be some correlation on CKCM, BNT, FMD, SFCC... only half of them... guess we will see where they end up tomorrow. Cheers
Hi Spydertrader, Thanks for the response. I'll give thought to your suggestions, which make a lot of sense. I wish I had the time during the day to follow the intraday method that's being used here. If there are others following along who are making end-of-day trades, please chip in with your methods and experiences. I'm going to begin making EOD trades in the coming weeks and will do my best to post as I go. Regards, chaos
While the Stochastic Indicators no longer show positive divergence, a closer look at the Daily IVAC Chart (attached) shows a typical pullback evident in 20% price runs of the past. While past performance never guarantees future success, I feel you have wisely chosen a 'watchful waiting' strategy providing the trade plenty of time (and room) to play out. Tomorrow should provide some guidance as to future direction for IVAC. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1045768>
gooch, Great trade. Unfortunately, I'm in the Eastern time zone, so that trade would have come up during my work day. Do you ever set your entries in advance, as Spydertrader suggests? chaos
For those individuals who may not have experience with trading Options or a thorough understanding of Max Pain Theory, could you explain how you view the above correlations with respect to expectations of price movement? I think many individuals would find such a review helpful. - Spydertrader
The Rush Trade Demo platform used to run the previous market day on a loop - allowing a trader to test out the software after normal market hours. If their current Software Demo performs in the same fashion, you might be able to practice your trading after work using the "Intraday Methods" discussed here. Once you become comfortable with the Methodology, you could then alter the methods slightly to whatever form best suits your risk tolerance. - Spydertrader