Atari Thanks very much, good advice. And also to show you a little bit of what I was saying with Bruno R entry, here's an old post from Spyder in journal 2 which I was referring to as an example of entry on the 30 min charts. I have a collection of cut and pasted notes from Journal 2. This is just a snippet. Maybe the rules changed but at this point the 30 min was being used for entry. Thanks again for the advice - Mac BRUNO R ENTRY The best way for me to describe the entry criteria for Bruno R Stocks involves showing you a two day chart (30 min fractal) for NDAQ. See the attached chart. Notice on Day One, we see improved price right at the open (blue arrow), yet we see relatively low volume for NDAQ. The LBDU levels for NDAQ held at 310,00 shares yesterday, but NDAQ showed a price improvement of +.61 on only 60,000 shares (pink arrow 1). Notice also how NDAQ stays almost entirely within the intermediate term channels (green lines drawn in Monday Night). On Day Two we see price improve significantly in the first candle (orange arrow), and we also see a significant difference in volume (pink arrow 2). Both days appear similar at the outset, so how did I know to stay out on Day One vs. Entering Long Day Two? If we look at the Stochastic Indicator for both initial candles on both days (red circles) we see a similar pattern here as well. Our answer, must reside elsewhere. If we look at MACD Histogram, we see Negative Levels on Day One, and Positive MACD on Day Two (Dark Green Circles). We also have higher volume levels on Day Two. We know from Jack's many posts that Volume always leads price, so when you see improved volume with improved price with a positive MACD and upward diverging Stochastics, you have an increased likelihood of entering into a profitable trade. One might question, how did I know all this in real time? Simple. I had monitored NDAQ on Day One. I noticed a big price increase on low volume (again compared to LBDU levels) and decided Price could not sustain its run on such low volume levels. The market agreed with this assessment and price fell lower. Since NDAQ followed the trendlines so closely, I assumed Price would test the lower trendline at some point before proceeding higher, so I set a limit order for 200 shares at the $39.50 price point. After receiving a fill, I monitored volume and price to insure the rate of both price and volume increase showed improvement over the previous day. Later The LBDU and Average Dry Up Volume levels simply became 'confirmation' levels that volume was progressing as anticipated. Normally, I would sell the shares when price breached the upper trendline, however, NDAQ gave the appearance that it wanted to break out beyond the trendline, so I decided I should hold for a while to see what the future would hold. By the end of Day Two actual volume had exceeded the previous day volume, and as price also had improved, Jack's Jokari window indicated I should expect the trend to continue. As a result, I still hold 200 shares. The difficulty in attempting to 'catch the turn' with Bruno R set ups stems from not allowing enough room for price to move within the channel before jumping in. I had this problem with REDF last month. I simply entered into the trade a day early while price continued to fall. The next day (after I stopped out) price rocketed higher. I recommend trading small share sizes with this method until you 'see' the ebb and flow of the individual stock's cycle. Keep your losses small (I use a stop offset - purple line), and be prepared to take a few losses minutes before price rockets higher until you get it just right. This method contains a bit more art than science to it, but hopefully, the above explanation provides some additional clarity.
Ok, was away for a while. Got NFI - 3.06 after break of sym pennant. Daily volume still sucks though, may have to bail quick and take a 2% gain....
Lastly, GIGM's daily volume still sucks, but the 30 min is looking ok at the close. Up 3% on this one, will hold overnight if price holds until the close. If not, sell.
Nice price on XING. It didn't notice its unusual volume until later ... and it cost me. A Flat Top Pennant had formed and I entered right after the B2R gaussian completed (marked) on the bar that shows increasing black volume. Unfortunately, a huge sell order came in and my protective stop was triggered before I knew what happened. I probably should have looked to get back in at the end of the day and I'll certainly be watching it at the open tomorrow.
Might as well put up my other two trades. I'm not finding much follow through this week. I entered ICOC on unusual volume as a FBO of the green channel. I entered at the first red circle area and exited on the break down from the FBP. I might should have exited when the R2R formed, but the PRV still looked good and I thought it was worth giving it a little room.
I entered FMCN based on unusual volume and a pt. 3 being formed with the aqua channel. Once again, the trade showed no follow through. When PRV fell off I decided to look for an exit. I exited on breakdown from the FBP.
You must be busy - anotating all those 5 minute charts -whew !!! FWIW, I have the daily, 30 min, and 5 min up all the time. I usually only mark up the daily, although I will do the 30 for demo/posting purposes. But not really in real life. maybe this is you too? I passed on XING early cuz I watch the ES all day and was anticipating a pullback, and as volatile as things have been lately, I'm taking a more conservative approach and only "going with the flow" of the market.
Yeah, you've got two things working there for you. An FBO and an FTT of my red down. I was looking at it too but decided that the thick red was too close, only around 10% away. Wait, are you strictly short term trading? In that case this looks ok, if all you're looking for is a couple of %. Also, I would have made the dec red that you have a dec black instead. It may have given a better clue that the up move was about over and you might have gotten out nearer the top.