China's FTSE 100 swing trades

[China Diapers]

Good luck with this China.

Actually, I had ANTO as a potential buy also, as 13/08 inside day formed valid hikkake, but price never confirmed entry and signal has now expired.

You can consider yourself lucky then 🙂

Thanks

 

[barjon]

China

I've been away for the week and just come across your thread - a couple of points.

First,the spread. You'll be ok with ftse100 so long as you only take trades with at least 1.5:1 reward to risk potential, with the risk inclusive of costs (spread if spreadbetting). That would have kept you out of the ANTO trade.

Second, can't see why you took the ANTO trade anyway. You should be looking for price bars that become smaller in range as the retracement progresses (CNA is a good example from last week) and you were hitting an expanding range with ANTO which is a no, no.

Hope this helps

jon

 

[China Diapers]

China

I've been away for the week and just come across your thread - a couple of points.

First,the spread. You'll be ok with ftse100 so long as you only take trades with at least 1.5:1 reward to risk potential, with the risk inclusive of costs (spread if spreadbetting). That would have kept you out of the ANTO trade.

Second, can't see why you took the ANTO trade anyway. You should be looking for price bars that become smaller in range as the retracement progresses (CNA is a good example from last week) and you were hitting an expanding range with ANTO.

Hope this helps

jon

Hi Jon,

I was wondering when you might make an appearance, just in time too.

I have looked at the spreads of all the FTSE 100 and apart from about 6 or 7 most spreads are under .25% so will stick with FTSE 100 for now and filter out the bad apples. Going on the spreads ANTO was not a good idea.

CNA was a no go for me, just, as close was below the 18sma, but point taken re the smaller ranges. I was doing this originally but ended up with the dilemma where I was getting no setups if you remember from Toms thread so I ditched it. Will start again if it will keep me out of bad trades, I can probably even code this into my screener.

Thanks, your input is always welcome.

 

[barjon]

Hi Jon,

I was wondering when you might make an appearance, just in time too.

I have looked at the spreads of all the FTSE 100 and apart from about 6 or 7 most spreads are under .25% so will stick with FTSE 100 for now and filter out the bad apples. Going on the spreads ANTO was not a good idea.

CNA was a no go for me, just, as close was below the 9sma, but point taken re the smaller ranges. I was doing this originally but ended up with the dilemma where I was getting no setups if you remember from Toms thread so I ditched it. Will start again if it will keep me out of bad trades, I can probably even code this into my screener.

Thanks, your input is always welcome.

China

CNA - the method allows for a slight penetration doesn't it? It was a nice three bar swing with nice reducing range leaving you with a very low risk trade to take and a very nice 4:1 potential.

So, if you were going to bend a rule, this was the one to do it and not the ANTO one which never had much potential in it and was a relatively heavy risk to run.

jon

 

[China Diapers]

China

CNA - the method allows for a slight penetration doesn't it? It was a nice three bar swing with nice reducing range leaving you with a very low risk trade to take and a very nice 4:1 potential.

So, if you were going to bend a rule, this was the one to do it and not the ANTO one which never had much potential in it and was a relatively heavy risk to run.

jon

Yip I agree with you, CA good, ANTO bad.

I need the trade selection process to be as mechanical as possible due to time constraints (work long hours and now have a 4 month old daughter to entertain) so if something doesn't get picked up my screener because it's the wrong side of an MA then that's that, my days of staring at hundreds of charts every night are over. But yes I will either tweak the screener or do a visual check so that the ANTO's of this world are avoided in future 🙂

 

[China Diapers]

Thanks again for the the comments, this is exactly why I started this thread, I knew I was probably missing something, or a lot of things.

 

[barjon]

Yip I agree with you, CA good, ANTO bad.

I need the trade selection process to be as mechanical as possible due to time constraints (work long hours and now have a 4 month old daughter to entertain) so if something doesn't get picked up my screener because it's the wrong side of an MA then that's that, my days of staring at hundreds of charts every night are over. But yes I will either tweak the screener or do a visual check so that the ANTO's of this world are avoided in future 🙂

You could set your screener to give you those that have penetrated the shorter ma. That will give you a pretty short watch list to deal with.

ps: 4 months, eh - luvly 😀

 

[barjon]

pps: ....and point up the viable trades that don't reach the longer ma

 

[D70]

Agree with D70. the spreads on FTSE 100 stocks vary wildly, so maybe create a spreadsheet of the FTSE 100 and input the spreads of each stock from your broker, and then calculate the percentage that the spread is. Then you can filter out any stocks that are too expensive.

For example on IG index as I type BP is 453.75 - 454.75, which is a 0.219% spread, whereas Paypoint is 685.8 - 696.7, which is 1.56% spread.

So if you insist on trading the FTSE stocks, then give yourself a spread limit as D70 said and don't trade anything that is above it, as starting a trade 1.56% down is just silly. Max of 0.5% or less ideally imo.

Spot-****ing-on.

 

[China Diapers]

You could set your screener to give you those that have penetrated the shorter ma. That will give you a pretty short watch list to deal with.

Sorry I meant if something closes below the longer ma it won't be picked up by screener. What you described is exactly what I do. See chart attached (yes I use prorealtime).

ps: 4 months, eh - luvly 😀

Yes she certainly is 🙂

 

[China Diapers]

Tomorrows trade/trades:

Long RSL.

I don't really like the look of it looking at the huge reversal that happened Wednesday when the April gap was filled but strictly speaking it meets the criteria, and what do I know anyway.

0.2% spread btw = )

 

[barjon]

Tomorrows trade/trades:

Long RSL.

I don't really like the look of it looking at the huge reversal that happened Wednesday when the April gap was filled but strictly speaking it meets the criteria, and what do I know anyway.

0.2% spread btw = )

can you post a chart, china, can't see that this one fills the bill on mine.

 

[China Diapers]

Sure thing. We made a new high on Wednesday which has been followed by two successive lower highs. Price and faster MA are above the slower MA.

The range and volume have decreased too.

 

[barjon]

Sure thing. We made a new high on Wednesday which has been followed by two successive lower highs. Price and faster MA are above the slower MA.

The range and volume have decreased too.

bit confused 😕 I thought the idea was that you waited for price to retrace to touch the slower MA (or at least between the two)?

 

[China Diapers]

bit confused 😕 I thought the idea was that you waited for price to retrace to touch the slower MA (or at least between the two)?

You use that rule? I am feeling a bit silly now but I guess this is another area where I had used my discretion. For me MA's have no magical properties and are strictly an objective way to determine the trend, and in this case the trend is up.

I thought the idea that MA's act as support/resistance had been dismissed as fairy tales. Do you not believe this to be the case?

 

[D70]

You use that rule? I am feeling a bit silly now but I guess this is another area where I had used my discretion. For me MA's have no magical properties and are strictly an objective way to determine the trend, and in this case the trend is up.

I thought the idea that MA's act as support/resistance had been dismissed as fairy tales. Do you not believe this to be the case?

I believe it's akin to buying at a fib level. You're looking for that shallow retrace and just enables some objectivity. I'd say, as long as your method is consistent. It wouldnt matter either way. There is no magical dust waiting between the ma's, just like there is no magical dust above the ma's.

One could argue that the shallower the retrace, the stronger the stock / price.

 

[China Diapers]

I don't believe in fibs either, but I agree with what you are saying.

That been said Barjon has been trading this way since before I was probably born so no trades tomorrow.

 

[barjon]

You use that rule? I am feeling a bit silly now but I guess this is another area where I had used my discretion. For me MA's have no magical properties and are strictly an objective way to determine the trend, and in this case the trend is up.

I thought the idea that MA's act as support/resistance had been dismissed as fairy tales. Do you not believe this to be the case?

No, I agree MAs have no magic but they are absolutely key to the Floor Trader Method if that's what you are using. The idea is that when price reaches this level it will be a decent retracement, something beyond a minor pullback but before a reversal (as indicated by the MAs direction). All the MAs are doing is trying to give info about this idea.

I suppose mine is a sort of amalgam of 3+ bar (like Rivalland) and FTM, but it points up the same idea - a decent retracement giving something to work with and relatively low risk if it doesn't come off.

I've nothing on the radar atm, but might have a crack at VOD again - I've put the FTM stuff on the chart and it "offends" those rules, of course (as did the previous one 😆)

jon

 

[China Diapers]

🙂

OK I understand now, thanks for the explanation.

 

[China Diapers]

No, I agree MAs have no magic but they are absolutely key to the Floor Trader Method if that's what you are using. The idea is that when price reaches this level it will be a decent retracement, something beyond a minor pullback but before a reversal (as indicated by the MAs direction). All the MAs are doing is trying to give info about this idea.

I suppose mine is a sort of amalgam of 3+ bar (like Rivalland) and FTM, but it points up the same idea - a decent retracement giving something to work with and relatively low risk if it doesn't come off.

I've nothing on the radar atm, but might have a crack at VOD again - I've put the FTM stuff on the chart and it "offends" those rules, of course (as did the previous one 😆)

jon

So you took that vod retracement you have highlighted?