Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Nef- your right I don't usually touch anything under a dollar. That being said, you seem to be averaging down beforehand. Your mitigating risk which is smart so if it works then great. But again, how reliable can a pattern be if the only way to trade it effectively is to average down ahead of time? Just my 2
I would prob avoid it or buy less and here is where getting in for a cheaper price can lessen risk on these plays. My setup has you getting in 2 days ago, but again i don't love the chart. The last one like it I almost played was achn. Still watching it and love the huge gap above but if I go in I may try to buy at a bounce off the bottom support line. It's sort of how lowT plays channels, it's a different trade and like you, I'm not as comfortable with them.
Wow your doing great considering first year exclusively using charts. Nice work.
Also that's only my sell plan for exiting pre breakout, if a breakout never comes before a pattern matures, or if I held too long after breakout. I still like taking profs on lowT 3-5 day run rule, or first red day after an exhaustion candle, or a price target being reached based on the pattern being traded. Finviz will often add new top trendlines which can help as the trade is happening. I got out of ZGNX based on exhaustion candle and a new top channel trendline they added mid-day.
Can you give me an example? If your talking about high volatility stocks with low floats I try to avoid them altogether. My worst trade in the last year was a 8.5% loss on OXGN about 4 months ago. It was below 100k average daily volume and I bought above the breakout line using a stop buy order. Just plain stupid.
Bonespur, how long have you been trading, and how long using T. A. ?
Yes thats correct. Any 2 indicator reversals. But I will also exit on a close below a support line as well even if only 1 indicator has turned sell. For example, on your BLDP chart a close below the blue angled line (the support line in the ascending triangle) would make me exit.
Sorry. PPO became a buy in dec. W%r on feb 10th. And Aroon on feb 18th
Perfect.! For those who have been asking about this setup you can see that both W%r and PPO(24day black line) both crossed to "buy" back in December. ARoon finally crossed where bonespur highlighted in blue on the 18th.
Thanks for posting this chart bonespur. It may be a good way to get an early signal to put some plays back on your watch list. For those not willing to paper trade my set up first, please notice your money can be tied up for many days waiting for the breakout that may never come. It will get you in cheaper however. It may take some a while to figure out which charts you like enough to take that trade-off. For more active traders bonespur is getting you in right at the breakout!
Take a look at BLDP again but using my chart setup! I would have bought it on the 18th. Now I know you may have chosen to wait for breakout and volume but perhaps there is a way to use my trend setup with your fidelity alert system so you get a heads up to add some of these play back to the "strong watch" list?
Not trying to make more work for you just thinking outside the box here? Experience tells me we will all make better trades working together than as individuals.
Thanks again, and I for one would sign up for your email and my trading partner would as well. We like similar patterns
Hi bonespur, I noticed BLDP was a quick jump in again(aka not on the watch list). Do you mind sharing where you get your alerts? And are you considering an email alert system ONLY for stocks not on your watchlist like BLDP and IDRA? Just trying to play a few more quick hitters while at work :)
Thanks, con
Yes on Aroon and W%r. On PPO I ignore the red lines and enter when the black(24day) crosses the center line (zero)
Hi lowT, does the 3-5 day run rule extend the run pre-breakout or do you only count the first day it closes above breakout line as day 1 in the run?
Thanks, con
Here is a link to my setup with IDRA at a 4.75 entry:
http://stockcharts.com/h-sc/ui?s=IDRA&p=D&yr=0&mn=6&dy=0&id=p96029726087
Here is a link to my setup with IDRA chart with a 4.75 entry:
http://stockcharts.com/h-sc/ui?s=IDRA&p=D&yr=0&mn=6&dy=0&id=p96029726087
BPZ by the way is a buy right now on my setup, pre-breakout
Hey bonespur, Lowtrade and most tech traders using indicators insist on selecting one momentum, one trend, and one volume indicator to avoid multi-colinierity. LowT has posted about this before. Basically the concept is that you don't want three of the same signals making you think it's a good entry when really they are just all measuring one indicator. For very short term swing traders like you and LowT my setup may not yield too much advantage since generally you both wait for a close above breakout or at least an intra-day breakout on strong volume. My trading partner and i tend to hold slightly longer than you and lowT by entering a day or 2 earlier and hanging in a day or 2 later if the situation calls for it but we play far less trades. After using lowT's indicator setup for a year or 2, we now use one of John Lansing's setups. He has one of those pay for advice websites (which I don't subscribe to) but some of his ideas and experience (many years at a professional at an investment bank) helped my timing. He ignores the multi-colinierity rule and sets-up with 3 trend indicators. Aroon(20 day), William's%R (20day), and finally PPO with (interestingly an 8,24,8) (ie- 8,24day,8) setup. I have found that entering the same chart patterns most of us are playing but PRE-breakout in most cases with this setup allows us to buy the stock cheaper but then we usually need to wait several days for breakout. If you try it please paper trade it first. I find we get our money tied up longer than you and LowT so you may not like it but the plus is we are in at cheaper prices so losses are less.
I think the reason it works is because although missing a volume indicator we still consider the volume bars below the stock chart before entry much like lowT's volume staircase which he likes to see and also that Aroon is momentum and trend so all 3 indicators are still accounted for only now the Trend is weighted. Also the PPO as a 24 day setting is good at weeding out whipsaws. (We only enter when all 3 indicators become a buy.).
Go back and look at IDRA and you can see way I asked you about it. You can see that our buy point would have been about 4.75. Go back and check ZGNX when I posted you about the last few days of the year and you can see we got in early there as well (made 37%).
It may not work for your shorter term trades however since as you can see from the ZGNX example my cash was tied up for 3 or 4 weeks after I posted you.
Basically you'll make fewer trades with slightly higher gains and slightly lower loses but if you start paper trading it post me how you would have faired. I do better with this than using LowT's setup so I would like your perspective.
Final note that goes without saying: we still trade the chart pattern first, it's just that we jump in early(usually pre breakout)with this setup. We generally exit on a non winning trade if 1 - (2 of the 3 indicators reverse) or 2 - (there is a close below a bottom trendline (like in an ascending triangle or too deep a handle in a cup-n-handle etc.). You get the point.
Let me know if you have questions and post any feedback.
Thanks, con
Sorry LowT, I meant BPZ
Well done! What do you think of BPZ from lowT's plays? He is playing the channel break but I like it as a reverse H&shoulders play. Breakout above 2.24ish
Thanks
Hi lowT, would you trade BPT as a reverse head and shoulders also? Noticed your playing the channel breakout.
Thanks, con
Hey bonespur, where did the IDRA play come from? Thanks, con
Hey bonespur, where did IDRA come from? Love the chart, my trading partner and I tend to do the best with ascending triangles. I am a lowtrade disciple but disagree with him on his indicator set up. In fact the set up we are using usually gets me into the trade a day or 2 early. The buy point on IDRA would have been 4.75 pre top line breakout on Wednesday but my buddy didn't see it posted until Friday. Did you find it on another sight?
Ps- let me know if you would like my indicator setup
Hi lowT. Can you repost your moving avg envelope for tracking s&p 500? I noticed it broke below 50day sma today. You used to look for 5-7 percent retrace correct?
Thanks, con
ZGNX breaking out of ascending triangle right now.
ZGNX mentioned here a few weeks back. Breaking out of ascending triangle right now.
ZGNX breaking out of ascending triangle now.
Hi, kid stock. Ascending triangles are generally a continuation pattern and rarely form at the end of a long down trend. So it may develop but your mindset will cost you if you keep looking for them in the bottom of formations
Hey bonespur it thecon00. Been following you since the lowtrade board. I entered LBMH 3 days ago and have my own trading plan but I was just wondering what you rules are for exiting if a stock like this keeps moving across both sides of the 2.40 pivot point.
Thanks, con
Bonespur, ACW great call. That was a very easy clean chart. Wish I didn't have my money tied up in APPY on Monday. Also the new indicator setup I'm using would have gotten me in on 7.1.13 had I seen it at only 5.40
OVRL, ascending tri. Looks worthy of st. Watch for a breakout above 1.30. What you think LowT?
Agent, I'm not LT but your symmetrical tri indicates that you need to wait for a breakout or a breakdown. Very new ADX cross seems to favor upside and oil has gone the way of market last few years so my guess is higher as long as market keeps moving up
Not always. I traded FHAL which became CSHD in 2005. It went from .10 all the way to 4 bucks. Then sec stopped trading on the scam and I lost over 60k in one day!
LowT. Would you consider SUPN an island reversal? Or another pattern. Wished I moved on it on Monday but was unsure. Thanks - Con
SNSS getting a little dicey? Looked like ADX was gonna cross Friday but now looking more like a bounce. Hate the way it traded on 2 huge market up days though.
couldn't agree more. THANKS LowT!!!
LowT, sorry in advance. On SNSS were you saying you closed (ie 'ended' ) the strong watch or that you were entering it today because it closed above your 5.61 breakout? I think you meant you were entering. Thanks - con
LowT did you enter SNSS? I'm in at 5.65
Bonespur, got anything on strong watch? Thanks -con
Thanks for update lowT, I was just going ask for one. If you have time what do you expect to happen with CIS and IKAN. Just exited CIS on 2 week rule and it has earnings on Friday on a rev H&S pattern. Thanks still watching them them though -con
Dianne, can you post a link to rights offering? I still can't find the info. Thanks