The trendlines you added to the chart above correctly bracket the current downtrend in price. I removed those same trendlines from my chart before posting in order to eliminate the "cluttered" look. To be honest, how Jack uses his trendlines isn't one of my areas of expertise. I never could get my trendlines to match Jack's or Nwbprop's charts. Perhaps, you could point me to the post you reviewed. However, I do use trendlines in order to determine if my particular targets or trades "make sense" or not. In the past, I have set target prices too high (outside the channels), entered long at the incorrect time (at the opposite trendline) or failed to exit when price bounced off a trendline price point (exited too late). I use Jack's Channels to avoid these mistakes. While reviewing charts this weekend, I did notice that almost all "20% price breakouts" occur after a day when volume is less than the 65-day average volume on the day before. In other words, based on the concept of "Very Low Volume" - FRV - 20% gain, the low volume period is almost always less than the 65-day average volume - even if the "Very Low Volume" fails to fall to the level of "Dry Up Volume" as we currently calculate it. I'm not altogether sure if the above answered your question or not, but I hope you find the information useful. - Spydertrader
Thank-you for your kind words. Yes, still long ELOS from $28.05, as well as, JUPM from $16.57. - Spydertrader
Here is a link to the chart but I can't find a link to the thread he was using to explain this chart. No time, have to go to work http://www.elitetrader.com/vb/attachment.php?s=&postid=220282
I'm afraid I cannot speak intelligently with respect to Jack's Futures Methods. I have never spent the time required to learn the methodology. The above referenced NQ Contract Chart tracks price on a 15 minute scale for the contract in question. The Intraday Futures Method does not involve the use of Dry Up Volume. Perhaps, dkm, SRVZ or Nwbprop could better address your questions with regard to futures. I apologize for not having the ability to provide you additional assistance in the area of futures. - Spydertrader
2005-05-17, Tuesday - Update This morning I monitored one list of stocks (4 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up." Dry Up Stocks BCSI EXM SYNA UBET Our system generated two possible trade signals from the list of five Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM. Dry Up Stocks Triggering Signal EXM UBET Dry Up Stocks NOT Triggering Signal BCSI SYNA Of the two signals generated, both of the equities showed price improvement and positive MACD. However neither equity showed a Stochastic Indicator within desired parameters, and as a result, we eliminated EXM & UBET from further consideration. The particulars for each equity at time of signal generation: EXM Time: 10:57 AM Price: $14.98 MACD: +.0833 Stoch: 61.7692 Score: 0 Low Band DU: 52,366 shares UBET Time: 11:16 AM Price: $5.93 MACD: +.0153 Stoch: 73.6842 Score: 0 Low Band DU: 58,775 shares I continue to hold positions in both ELOS and JUPM waiting until EOD to determine the correct course of action (hold or sell) with respect to these two equities. Should either equity reach Peak Volume levels by EOD, I plan to sell. Peak Volumes ELOS 576,590 JUPM 1,507,123 - Spydertrader
2005-05-17, Tuesday - ELOS Update Near 2:30 PM, actual volume for ELOS exceeded calculated Peak Volume levels. As a result, I placed a sell order for all shares. 05/17/05 14:31:27 31.45 31.45 31.55 1000 The three day ELOS trade produced a per share gross profit of $3.40 USD or roughly 12%. This equates to $3400 USD on our 1000 shares. - Spydertrader
2005-05-17, Tuesday - JUPM Update Although we did not see improving volume with JUPM over the previous day, I continue to hold all shares of JUPM at least until tomorrow morning. If we continue to see price improvement, I plan to sell by EOD tomorrow in accordance with our 4 day time stop. - Spydertrader
Nice trading... do u take any shorts? I read a while ago that you might... but what is the current status on that idea?
I continue to monitor all opportunities - both long and short - as the market presents them. Jack Hershey has written very little on the subject of shorting Hershey Equities. As a result, I post very few of my short trades within the Journal. In prior posts, I have provided the methodology I use for "shorting" Hershey Equities, however one should fully understand the methods used for trading from the long side before attempting to move on to shorting "Hershey Stocks." - Spydertrader