Best Thread How To Make Money Trading The Markets.

[Mr. Charts]

Hello shopsmart,
I read news stories pre-market and use scanners before and during market hours to find stocks which might create the set ups I use - of which this thread is about one only.
I also use level 2 T&S to provide a trigger for the trade. You can manage without level 2 t&S but it gives me a huge edge; it sometimes, not always, gives me key evidence as to whether a trade will work or not.
Richard.

 

[shopsmart]

Thanks for your very quick reply, Richard.

Would it be too much to ask what your scan criteria might be?

I have seen scanners like one at finviz.com (which seems to have good reviews) but the criteria is overwhelming. I understand the news factor though.

I appreciate you sharing your methods with people like me and supporting us too. Thanks much.

 

[Mr. Charts]

Personally I use eSignal turbo scanner intra-day.

 

[Taylored001]

Personally I use eSignal turbo scanner intra-day.

Ha YES! I love them scanners I trade the Nasdaq opening for gaps using the pre-market scan

 

[dubula11]

Hi mr charts just finished reading the entire thread on a quite boring easter sunday thanks for your comments. Just wondering if you could recommend a broker or one which you personally use.

The main question I have is what is your criteria when searching for trending stocks I saw somewhere a general rule of thumb as volume 400000 is there any other criteria. cheeers.

 

[Mr. Charts]

I use interactivebrokers.
Volume is dependent on time of day and the day itself. Obviously a stock with a volume of 200k traded three hours into the market is too thin, but might be perfectly fine 10 mins into the market.
It's also dependent on spread and the volume you're going to trade.
I'm quite happy trading a stock with lower volume on a very quiet day, but wouldn't do so on a normal day.
Richard

 

[dubula11]

mr charts would you say that id have to find stocks with volumes of around 500000 when trading between 6-9pm uk time(after work). Do you have success trading in that time frame and do you find many opportunities?

Last question sorry to be a bore, but if you find a chart that is set up nicley and meets ur level 2 criteria will you not go for it if volume is too high or spreads too wide.

really appreciate your time thanks a lot.

 

[Mr. Charts]

mr charts would you say that id have to find stocks with volumes of around 500000 when trading between 6-9pm uk time(after work).
YES
Do you have success trading in that time frame and do you find many opportunities?
YES AND YES

Last question sorry to be a bore, but if you find a chart that is set up nicley and meets ur level 2 criteria will you not go for it if volume is too high or spreads too wide.
VOLUME CAN'T BE TOO HIGH UNLESS IT LEADS TO PRICE STAGNATION
IF SPREADS ARE TOO WIDE TO BUY/SELL AT MARKET I'LL TRADE INSIDE THE SPREAD WITH LIMIT ORDERS UNLESS THE MOMENTUM IS TOO FAST TO BE LIKELY TO GET FILLS WITH LIMIT ORDERS


really appreciate your time thanks a lot.

HOPE THAT HELPS
RICHARD

 

[Mr. Charts]

Here's one from this afternoon.
+57c
I was trading other things earlier and picked this up off my scanner - otherwise I might have found it sooner !
I exited before the chart signal discussed earlier on this thread because level 2 became erratic and that is sometimes a sign of an imminent reversal.

 

[Mr. Charts]

....and this is the chart a little later.
It did become unstable as level 2 warned me it might do - dropped almost a whole $ from my exit.
Richard

 

[Mr. Charts]

I posted some stuff on another thread which some might find interesting - it's about short term versus swing/position trading.
http://www.trade2win.com/boards/day...90-can-scalping-make-you-rich.html#post727116

 

[PKFFW]

WOW!

Haven't been on these boards in a while, come back, see a post by Mr Charts, follow his signature link and find this thread of pure awesomeness! I should come back more often!

Thankyou Mr Charts for a great thread.

Just a quick question if you have time.....

I have noticed there doesn't seem to be any hard and fast rule regarding when within a trend you might trade this set up. So do you take this set up any time during the trend or are you looking for it to occur after a break of support/resistance or after a consolidation/pullback etc?

I have also emailed you with a question that is beyond the scope of this thread.

Cheers,
PKFFW

 

[Mr. Charts]

WOW!

Haven't been on these boards in a while, come back, see a post by Mr Charts, follow his signature link and find this thread of pure awesomeness! I should come back more often!

Thankyou Mr Charts for a great thread.

Just a quick question if you have time.....

I have noticed there doesn't seem to be any hard and fast rule regarding when within a trend you might trade this set up. So do you take this set up any time during the trend or are you looking for it to occur after a break of support/resistance or after a consolidation/pullback etc?

I have also emailed you with a question that is beyond the scope of this thread.

Cheers,
PKFFW

Thank you for your very kind words.
I've emailed you twice, each having one of my video files attached, so they may take some time to download, but I thought I should let you know they are not viruses and are safe to open


I do prefer to wait till after a pullback, but provided there is still momentum and I get a level 2 trigger I'll take the trade anyway, though as always with a pre-determined maximum worst case stop; frequently I'll be out of the trade before the stop is hit if that momentum turns against me - sometimes even before that.
I don't chase trades, but if everything is still going the right way, I'll take the trade.

Hope that helps, again thanks for your words,
Richard

 

[Mr. Charts]

They are always there, these set-ups, even on quiet days.
+43c bread and butter trade
I exited because I could see a rush of buying on level 2 and T&S.
As usual, red X hairs on the entry and image taken at time of exit.
Richard

 

[Mr. Charts]

Here's what happened later.
It bounced on that candle. The rush of buying pressure visible on level 2 T&S was the third dimension - BEFORE any two dimensional chart sign was visible.
The candle that I exited on proved to be the low of the day so far.
Richard

 

[tar]

Mr Charts at which time of the session u consider it too late to enter a trade using this method ?

 

[Mr. Charts]

Currently long AMB from $17.59 on 3 min candles

 

[Mr. Charts]

.........so anytime till a few minutes before close
Richard

 

[Mr. Charts]

trailing stop just below whole number at 17.98

 

[Mr. Charts]

that's worst case scenario