Diary of a swing spread better

[Chorlton]

*** Off-Topic slightly ***

With regard to Marc Rivalland's book on Swing Trading can those who have read it confirm whether (in your opinion) this is overall a good book.

The reason I ask is that the book seems to have had quite a lot of negative feedback from customers, such as the poor use of punctuation that is used throughtout the text, unclear charts and the fact that he doesn't clearly explain the trade set-ups.

Your thoughts would be most welcome..........

Chorlton

 

[chindl]

I must apologise, it was not Mr Charts, but Chartman that wrote the K Lab article.
C

 

[hungvir]

No problem Hung - I still refer to this document today, I still read it about three or four times a year.

When the article was first published there were weekly threads on how to make the most of the system, chaired usually by Mr Charts, aka Martin Shoebridge who wrote the article. As I understand it, Martin has set up his own web site now to carry that on, but it is a subscription site, and I tend to steer clear of subscriptions. For anyone interested in using this for day time play time then they could do worse than go back through the old threads from 2004, I think there's a link in the K Lab article. The way in which the beast of the Dow moves today is still similar to how it worked when the article first came to light so it should help those wishing to partake.

I agree on the day trading, steer clear if you do not know the instrument and have no experience with your new system or, as Elder would say, the Pirhanas will eat you alive!!!!!

Taking a longer term view of the Dow, we have support kickin in the 11050 area over the last few days with a resistance level at 200 so ranging prior to the GDP report tomorrow. This report will be the key in determining the overall direction of the Dow in the next week or two, a similar report to the CPI last week and we could have serious downside implications for equities, but I don't think the government will publish such a negative report just before the long weekend and I suspect the report will be slightly positive to give some respite to the recent downside this last couple of weeks.

If we have much more sideways action though we will see a nice bear flag forming, just think of it like this, a fall below 11000 will see a lot of people out of pocket and will probably provide serious resistance as they sell to keep their losses on each rebound to 11000. Will this play out; don't ask me, trade what YOU see!!!!

Good luck everyone.

Chris

Hi Chris,

Thanks for alerting us about the GDP report. The DOW has been trading in the very narrow range of 11070-11080 for the last 90 minutes. Which ever way it breaks, it will be significant. I went short already at 11182.

My first short was actually at 11176 and stop loss was at 11182 market price at Worldspreads. Though the market never went there I was still stopped out. Had to ring them up and they said it was a glitch in the system. My experience at Worldspreads tells me to never place a stop loss order, just use a mental one. But I think Split once advised placing stop loss at a point far enough that 'their quote' can never get to you.


Later,

Hung

 

[hungvir]

*** Off-Topic slightly ***

With regard to Marc Rivalland's book on Swing Trading can those who have read it confirm whether (in your opinion) this is overall a good book.

The reason I ask is that the book seems to have had quite a lot of negative feedback from customers, such as the poor use of punctuation that is used throughtout the text, unclear charts and the fact that he doesn't clearly explain the trade set-ups.

Your thoughts would be most welcome..........

Chorlton

Chorlton,

I think the reviewers read the wrong book I don't think I have ever come across a book that details a trading system that clearly and with back-testing results. If I had to bid for it on eBay, I would pay up to £500.

Best,

Hung

 

[hungvir]

Closed my short trade for a loss of 20 points. There's a strong resistance at 11200 so a long trade does not have much potential. If it comes down again, I'll surely go short.

 

[hungvir]

Went short again at 11196. The DOW has never been able to break thru the 11200 mark since May 17. I am in just to cover my loss

 

[chindl]

I've opened up an account with WS due to Caps not working anymore due to the firewall at work - is it common for them to knock out stops in this manner?
Chris

 

[hungvir]

It looks like a break-out pull back here. But I don't think it can go above 11200.

 

[hungvir]

I've opened up an account with WS due to Caps not working anymore due to the firewall at work - is it common for them to knock out stops in this manner?
Chris

I haven't traded with them that often to say but they don't accept market orders so we have to go with their quotes. I was told that their quotes of the DOW are based on the DOW's future price. But I think it's best not placing a close stop loss for the DOW any way. Even with Fins, I will only use mental stops. Sometimes it takes ages for a stop loss order to be filled. And when it is, it's filled at a price that they determine. If you close the trade yourself, what you see on the screen is normally what you get.

But WS's system is very fast and reliable given that they're fairly new.

Later,

H

 

[chindl]

I think it may breach 200 before close, the hourlies, 30 mins and the 15 min support a breach. Lets see!

 

[hungvir]

By the way, they do take market orders for certain products but I don't know which. The glitch that I mentioned earlier was that when I click on 'market price' to place my stop loss for the DOW it was accepted. In fact, they don't take it.

 

[hungvir]

I think it may breach 200 before close, the hourlies, 30 mins and the 15 min support a breach. Lets see!

That would be good news, though not for me. Still have two point profit though

 

[hungvir]

Technically, it just broke out of a triangle and is now coming down to test the resistance which may now have become support. If it does not bounce back up again, I doubt that we'll see any thing beyond 11200.

 

[hungvir]

Closed the trade for 7 points. I may go short again if it drop thru 11180.

 

[hungvir]

It's at 11170 now. Will wait for a bounce to go short yet again.

 

[hungvir]

I can't predict where it's going to close for today but may be it's going to be yesterday once more with a rise of about 20 points. If so, a short now can make around 30 points.

 

[hungvir]

Went short again at 11170. Then the question is what the hell did I close the previous short for

 

[hungvir]

It did go the 30 point distance but in opposite direction. Will see if 11200 will hold this time.

 

[hungvir]

Went to around 11204 then back again to 11190ish now. Decided to close the trade for a 20 point loss.

 

[chindl]

Different Bollinger

Here is the chart that supports a possible breach of 200, not loaded before so if fails blame the missus, or the England game. I use a 40 - 1.20 Bollinger and generally, when it breaks out of there we have a move in that direction. See how the ADX is supporting. The stochastic supports on th ehalf hour chart. I may be wrong, I'm no expert, but if it closes above 200 this session with a strong close tonight then we could have good upside from here into the long weekend... A failure further supports the bear flag on the daily. Lets see...PS - hung, you got out in the 70's cos it was about to reverse, but like me, made the mistake of going back in for more, greed is bad!!!