Swing and Intraday Set-ups

Discussion in 'Trading' started by Commisso, Jan 2, 2002.

  1. FITB

    stock is in a long term uptrend.. in december it broke out of a triangle and has pulled back into a bull flag.. the flag looks to have been broken and i would think it would be a long if it trades above todays close..

    #21     Jan 5, 2002
  2. TERN

    this stock has a pretty bear flag on the daily.. im thinking short on the break of course with a stop just over the trendline.. its important to note that the 200ma is looming not too far below though..

    • tern.jpg
      File size:
      72.5 KB
    #22     Jan 5, 2002
  3. CMCSK

    this stock got whacked mid december and gapped down a few points.. its been in a somewhat narrow range and tested the lows of that range on friday.. if it breaks the bottom of the range, im thinking short =)..

    #23     Jan 5, 2002
  4. i welcome all comments and criticism of my ideas.. however, if you come prepared to criticise, please also bring one of your current trade ideas =)..

    #24     Jan 5, 2002
  5. #25     Jan 5, 2002
  6. Nice examples qwik. MANU looks very promising.

    Another candidate?
    SEPR sitting at 50% Fib, just above 20ma, support at 38% and 62% Fib confluence

    • sepr.jpg
      File size:
      53.7 KB
    #26     Jan 5, 2002
  7. Pullbacks are my bread and butter trade, but I am not a scalper. I trade the hours to days timeframe.

    I would not take MANU and XMSR as trades at the current time because, to me, the volume behaviour is all wrong. I look for volume to dry-up to very low levels on the pullback and to expand dramatically on the subsequent advance. For these two we saw volume increasing on the recent drop.

    The behaviour of MANU just before the Nov 26 advance is an excellent example of what I like to see.

    I see dry-up in volume as the volume equivalent of a narrow range day and, indeed, it often happens at the same time as a narrow range day. It represents a place of maximum disagreement between buyers and sellers. Buyers don't want to pay up and sellers won't sell for less.

    However, if you choose the stock well, which means one showing a a strong, dynamic, upward trend in the case of pullback trading, it is a situation of unstable equilibrium. This is because the weak-holders have already been shaken out during the pullback. However, the nimble short-term traders who sold at the top of the previous run are looking to re-enter for the next wave and newcomers attracted to the stock are also looking to get in at the start of the next advance. Evidence of their enthusiasm still being present is the surge in volume on the next move. In fact their enthusiasm is sometimes evident just before the move starts if you track volume on a shorter timescale.

    Sorry, I have no trade suggestions as I have not yet done my research on Friday's data.
    #27     Jan 5, 2002
  8. aura0663


    Quik- I like the way this is setting up, if I had seen it Fri, I would have entered a 1/2 position with another 1/2 Monday if it takes out 20.11. Sitting on 10/200 ma s with volume and minor support from third week in Dec-it don't get much prettier-will definately watch it Monday
    #28     Jan 5, 2002
  9. neo_hr


    My God, now THIS is the real meat and potatoes, Duf! Psychology behind every move. Can you help me out to learn that! I mean, every pattern is "backed up" by some psychology... how do i get to see it?

    THX man, and all the best!
    #29     Jan 5, 2002
  10. Jeffo


    I would agree with you it would be better for volume to dry up on the decline, however i believe the higher up volume on Friday than the volume on the down days is significant. As far as supply and demand goes it's possible that the sellers got sold out on that decline. Plus, this sector is very strong. That being said it's possible there are some better setups.
    #30     Jan 5, 2002