Spydertrader's Jack Hershey Equities Trading Journal III

After an FTT, Price moves back to the right trend line (retrace - skinny red lines on my chart) on decreasing Volume. Once Price breaks through the right trend line, expect to see increasing black Volume with increasing Price.

- Spydertrader

 

Oops, hadn't drawn any TL's for that....

So one should expect lower volume until we see a BO? Then inc. price and vol after....

 

Yes. Also, see attached.

- Spydertrader

 

Yikes! I was just getting ready to jump on board CECE at 10:05 EST when the plunge hit.

 

sorry - a little bit off topic :

would someone let me know where to look for the Gaussian's formulars -
TradeStation version?

Thank you.
Charly

 

Monday Dry up Stocks

CHDX IAAC LEND MEH OMRI SYX

Also, keep an eye on OMTR

- Spydertrader

 

I think someone posted this information within the Futures Journal.

- Spydertrader

 

Can someone pls clarify:

When a stock shows up on the watchlist for DU and it doesnt do it the next day BUT the indicators are aligning for a good set up (MACD trending towards 0; stoch almost crossing 50)..

Do we still have to use the DU numbers to dictate our entries?

OMTR is a good example; it showed up on the DU list the last time about 8 trading days ago but the set up wasn't great. However, as Spydie pointed out from his last post, its looking good sitting on the RTL as if to FTT.

thanks for the response.

 

It depends entirely upon how one plans to trade. If a trader focuses on the Dominant traverses, then one needs to look for increasing Volume as Price heads higher (increasing black) off a Point Three. On the other hand, if a trader entered long off an FTT of a down channel, one then needs to see decreasing black Volume as Price heads back to the RTL of the down channel. In such a case, a trader would have entered and traded a non-dominant traverse. In the example of OMTR, we have two competing trends. Using PRV Volume, one can determine which (at the present time) controls Price. Once one knows which Trend (up or down) Influences Price the most, one can then know what to anticipate in terms of Price and Volume.

- Spydertrader

 

Thanks Spyder...this is where i "mess" myself up.

So using OMTR, sorry to sound ignorant, my read from the Volume today..I didn't enter as volume today didn't appear enough to change the current down trend (like 30K by 10:30) i.e. higher price with increase volume didnt materialize so far...