Thanks for the contribution nwbprop. Since you have experienced a high level of success trading The Hershey equities, perhaps you could post your methods (when time permits) for others to study. I am confident the group would find your methods beneficial. - Spydertrader
Do a search on Jack Hershey, bubba7, and currently Grob109. I will try to find stuff that is more relevant tonight on channels that Jack has written up.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=15072&perpage=6&highlight=defin\\\[\\\^\\\\s\\\]\[\^\\s\][^\s]*%20trend&pagenumber=2
When you buy a stock, draw in the corresponding channels. You should be buying a stock after the pt 3 is made. This will help with a lot of other factors like stops, exits etc. If you go through your history of trades and draw in the corresponding channels, it will hit you on the head.
For the third day in a row, we failed to generate a trade signal based on the criteria previously posted. Bummer! (Perhaps, I should have started the Journal one week earlier when we had three breakouts three days in a row.) We came close today, as NVEC and CRDN both had a volume surges. However, the increase in volume failed to reach the level required. Although difficult at times to remain focused on the rules, attempting to enter a buy with NVEC or CRDN would not have been wise. CRDN is WAY off the highs of the day, and NVEC has drifted slowly lower since reaching its high. Reviewing GMAI for educational purposes, we notice a continuation of an improved price trend on the third day since we opted not to trade the stock. Since we would have shorted GMAI, it appears as if our decision has been validated thus far. I plan to review other 'large gap open' Hershey stocks to determine an alternate method for trading these scenarios. As mentioned in a previous post, exiting early on a MACD and Stochastic crossover, might allow for profit even on these large gappers. In the last year, I have had only one week where the system failed to generate at least one buy signal. As a result, (although disappointing) I remain patient in waiting for the signals to appear. Many thanks to Nwbprop for posting his charts, methods, and links. His contribution has been appreciated. In case anyone encountered difficulty using the link posted by Nwbprop, I have added a shorter version here: http://tinyurl.com/5g7rl Once again, I want to thank everyone for their contributions and for their patience. I appreciate the effort required and if I can be of any additional assistance, please let me know. Looking forward to tomorrow! - Spydertrader
Yes, we did eliminate NVEC due to float outside normal parameters. However, after three days without a trade signal, I didn't want to write, "No Trades Today; Thanks for tuning in. " As a result, I wrote on the importance of 'following the trading rules' and what can happen if one doesn't by using NVEC and CRDN as examples. Thanks for the question allowing me to clarify. Spydertrader