Another great call! It seems it's not only the system, it's how you handle it, especially your exits ...
Thanks for the kind words. I drew these downtrend lines (brown) over the weekend. I wanted to see price close above the upper trendline in order to anticipate trend continuation. When price began to fall after three attempts at breaking daily resistance ($19.87 USD - thin red line), I assumed the stock had run its course, and exited. At the time I exited, the Stochastics (14,1,3) had not yet breached the 80 line. However, price had already clearly started to reverse its course. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1056735>
Sorry to see you caught that FBO with respect to your BTUI trade. Price ran right up to the weekly pivot and then reversed. These things happen now and then, but very good to see you correctly observe the current (at the time) conditions and exit for a wash. Focusing on execution brings eventual profits. Nicely done. - Spydertrader
Hey spydertrader et al, is it my imagination or are we in a dry period right now? Seems like I have only had a couple of solid, clear signals I actually took for the last week or 2. Before I started actually trading these things it seems to me that there were days where reports on this thread showed things to be hoppin'. That is, several buy signals simultaneously on the same day with raucous action.
hey stevegee, I had three LBDU triggers this morning, but did not enter any trades due to chart reasons (in 2 cases) and a large block trade for the third... So far for me the system has kept me out of questionable trades. It also kept me out of a stock which roared higher today, but stayd below the LBDU trigger. cheers.
When I first began Journal One, I experienced a two week period without a single valid signal. Imagine, not one confirmed signal to trade in 10 straight market days. These things happen from time to time with respect to trading the DU ----> FRV ----> Peak paradigm. They usually occur right before a shift in Market Dynamics. Although difficult to remain on the sidelines, "Sitting on your hands" remains a valid choice while waiting for the highest probability set ups. Remember, cash is a position. - Spydertrader
GMXR looked VERY interesting to me: It got a very early DU signal, but then seemed to calm down, and get caught on a low resistance level, but by the end of the day when most of the market closed DOWN from the open, it closed (just barely) up from its previous day close, and it broke FRV just before market closed. As a newbie I would guess that this stock might have gotten weighted down from the larger market, and might be ready to spring tommorow... Spyder, what is your opinion, please? (sorry I'm not savvy enough to attach cool annotated JPEG like many great users of this Journal)
QCharts does not show GMXR hitting FRV by EOD. Symbol: GMXR Upper Band = 183,874 Average DU = 122,697 Lower Band = 61,520 FRV = 368,092 Peak = 736,183 However, Price now sits almost exactly on the 20 period SMA. If GMXR continues to show rising MACD Histogram, as well as, rising Stochastics (5,2,3), you should see some profit. IF you don't see improvement in both price and volume, you can always exit with too much additional pain. - Spydertrader P.S. You can use a screen capture program (like Snag-It) to annotate your charts. To attach those charts to your posts, simply follow the instructions posted previously within this thread.
I plan to monitor the following stocks today ... BTUI CKCM GMXR HANS IIG MIND NCTY NGS REDF TWGP - Spydertrader
My Current Positions from this morning's buys ... <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1057554> - Spydertraderr