Trading the markets with Alan Rich.

[Naz]

Re US day trading.

I got my dollar run in the first two trades yesterday. +69 and +31. It was the turn at the highs in the Futures that caused my exit on both positions and bank profits.

Alan

 

[timsk]

Here are my entries and exits on the 15% Corus move, they were both taken by applying intra day trading skills to a multi day swing trade.
Alan

Hi Alan,
Good to see both you and Richard back in circulation again!
A query or two re. your Corus trade - if I may.
1. I kinda would have expected to see an earlier entry on the 15th following the swing low on the 14th on moderate volume and a close above the half way mark of that day's range - suggesting that buying pressure is building. The large bull bar on the 15th with increased volume confirmed this, so perhaps you wanted to see this price action first by way of confirmation before going long?
2. A more straightforward question now - you use Sharescope for U.K. e.o.d. charts - I was wondering who you use for the intra day data to pinpoint your entries?
Cheers,
Tim.

 

[barjon]

.....................As well as day trading the US, I swing trade stocks on the UK market where i read the intra day activity to understand how it fits into a multi day swing trade. This gets me in and out whilst EOD swing traders are not quite sure whats going on.....................

alan

not too confusing for eod players surely?

the earlier short (white line to white line) was pretty straightforward and the second line exit was a good long entry point if not reaching earlier support is your bag.

it'd be interesting to see the intraday chart activity that led to your entry and exit points if you've still got it to hand.

good trading

jon

 

[timaru69]

alan

not too confusing for eod players surely?

the earlier short (white line to white line) was pretty straightforward and the second line exit was a good long entry point if not reaching earlier support is your bag.

it'd be interesting to see the intraday chart activity that led to your entry and exit points if you've still got it to hand.

good trading

jon

A Gartley 222, I wonder if it worked?

 

[timsk]

the earlier short (white line to white line) was pretty straightforward and the second line exit was a good long entry point if not reaching earlier support is your bag.

Jon,
With the aid of your chart, you've explained very eloquently and succinctly what I tried to express in my post earlier!
Thanks,
Tim.

 

[Charlton]

Welcome back

Yes, i welcome anyone posting here.

I've been absent firstly becuase i was in the St Lucia on holiday
.

St Lucia is fabulous - so luscious, one of the best Carribean islands

and then i was told that Via-trader wanted to become a scanning only site. So i had no choice but to leave at the end of this month along with the other traders.
.

Their loss is our gain, if we can see more of your postings here


Charlton

 

[Naz]

I've enjoyed your posts.

Someone said to me on the telephone tonight its all well and good looking at charts after they've happened but when i'm there on a Monday morning starring at my screens i need to trade.

There is the crutch of things, most of us are good at making sense of charts after they've happened however its very difficult to take the trade, manage it as best we can for days and then exit. Thats not being rude its a fact. Actually taking the trade and making money out of it is a lot harder than analysing it. Mainly because of all the psychological feelings that come into our minds. Oh! i just read in the paper that blah blah blah. Oh xyz on the BB said it was a short. Oh my friend says the CCI has diverged...you know the stuff ....my wifes Aunt had red knickers on today which means its going down!

On the UK market i've done this. If i was a swing trader what would get me interested in a trade?...and get an answer. If i was a day trader how would i play this move? Can i take the day trade and open my mind and turn it into a swing trade?

When i've turned it into a swing trade i ask myself how a day trader would exit then i look for that exit and when i see it, thats when i'm out.

I use Sharescope with intra day and end of day charts side by side. Most of the time i follow ten days of intra day movement to fully understand whats going on. End of day charts can some times lie but i'm sure we can talk about that another time. That of course can put all our EOD analysing up the shoot.

You know what, intra day charts in general are very good at telling you whats happening.


Alan

 

[Naz]

Here is a UK chart, look at the end of day bars and then work out what they truly should read by studying the intra day moves.

The intra day charts tell whats really going on, the end of day bars say something completely different on some days.

Alan

 

[Trader333]

...my wifes Aunt had red knickers on today which means its going down!

Did you mean the knickers or did you mean the market


Paul

 

[Naz]

Nice one Paul.

Alan

 

[Naz]

If i was presenting today one stock i'd be showing would be ISRG.

That stock can run 500 points in a day. In three days it made 1000 points last week. This means you can make money out of it because when it moves it certainly does go. Its consolidatating near its highs. The intra day chart gives a nicer picture of whats happening. I'm just going to watch it over the next few days and see if it sets itself up at the beginning of the day for a run and then i'll jump on it , which way that will be i dont know but if i watch it intra day it will start setting up if its going to move. If it does nothing i'll leave it and pick it up at the start of the next day.

If i mentioned it at the beginning of the day in a room and i was busy with something else then the hope is that one of the members could alert everyone if it was getting interesting.

Alan

 

[Naz]

Here's my take on t/a. I might analyse what ISRG has already done using t/a but i dont want t/a creating a belief in my mind and i end up trading that belief and not whats truly happening.

If the market sells off hugely i want to see how they react to it intra day and profit from their fear. If they've got bags of confidence i want to watch intra day to see if they really want to break higher and profit from the move. If it goes nowhere i'll move on and check it the next day.

The idea is that by watching its intra day movement you should see the story slowly unfold and then profit from the move. As this stock goes places when it does move then you can decide in what trading style you wish trade the move.

Alan

 

[Naz]

ISRG set itself up intra day and ran 400 points up to now. I called the break in the US room at $109 and even that was worth 300 points. The key for me was the first major intra day pullback which gave the first indiction of its intention, after that the odds were that it would run and try for the break of the highs.

Alan

 

[samtron]

Did you mean the knickers or did you mean the market


Paul

There is also a third option which NAZ could be refereing to

 

[Naz]

ISRG was up 800 points on the day at the close!!!.

I attach the chart

Alan

 

[timsk]

Here is a UK chart, look at the end of day bars and then work out what they truly should read by studying the intra day moves.

The intra day charts tell whats really going on, the end of day bars say something completely different on some days.

Hi Alan,
Sorry to be a thorn in your side, but . . .
The e.o.d. chart is clear and and straightforward, but I struggle with the intra day chart which, to me, is much harder to 'read'. (In part, this may be due to the fact that I'm used to looking at 5 min' candlestick charts of Nasdaq stocks on Prophet.net). I can't speak for others - obviously, but I'm struggling to extract anything useful from the intra day chart that I can't see in the e.o.d. one? I appreciate that these are skills you teach on your seminars and 1-2-1 tuition, so I'll understand if you decline to offer any further insights. However, if you are willing to provide an example or two of the sort of thing you're referring to, I'd be very grateful.
Many thanks.

Tim.

 

[Naz]

Hi Tim,

I realise EOD charts are easier to read. I fully understand that. However a while back i was interested when two guys came to me and were EOD traders and wanted to understand intra day movement so they could put it together with their EOD studies. Afterwards i thought you guys have got a point. So this was one reason ,only one that i started to look at a full day's intra day movement and see how it fitted into the EOD cycle. WOW it told you so much.

I then noticed in the UK that how on occasion a EOD bar paid no relation to what happened intra day and i'd thought pitty the poor trader who made his/her decision of that bar.

I attach a chart again of an intra day chart next to end of day chart on a UK stock. On 20/6 intra day clearly shows the stock opens at the highs and closes at it lows and goes down all day. EOD bar shows it as an up day closing at its highs. The exact opposite.

The next day 21/6, intra day shows the stock continues its trend down, only the EOD bar shows it as a small up day. The exact opposite.

The next day intra day shows it as a slightly up day, EOD shows it as a down day. The opposite.

There maybe some reason for the discrepancy and i would be only to happy to listen to anyone who could explain what it is. Other than that its confusing EOD chart readers and something needs to be done about the structure of the charts to fully show whats truly occurring.

Alan

 

[barjon]

Alan

1. does your intraday chart reflect the closing auction and finish on the official close price?
2. is the intraday based on mid-price?

jon

 

[mahi120]

All

Hello All,

I am new to this site. I was looking at traders paradise scanning software, it seems to be good for acitive traders. Has anyone used/using this scanner and what's your personal opinion.
Thank you

 

[CYOF]

Hi Tim,

I realise EOD charts are easier to read. I fully understand that. However a while back i was interested when two guys came to me and were EOD traders and wanted to understand intra day movement so they could put it together with their EOD studies. Afterwards i thought you guys have got a point. So this was one reason ,only one that i started to look at a full day's intra day movement and see how it fitted into the EOD cycle. WOW it told you so much.

I then noticed in the UK that how on occasion a EOD bar paid no relation to what happened intra day and i'd thought pitty the poor trader who made his/her decision of that bar.

I attach a chart again of an intra day chart next to end of day chart on a UK stock. On 20/6 intra day clearly shows the stock opens at the highs and closes at it lows and goes down all day. EOD bar shows it as an up day closing at its highs. The exact opposite.

The next day 21/6, intra day shows the stock continues its trend down, only the EOD bar shows it as a small up day. The exact opposite.

The next day intra day shows it as a slightly up day, EOD shows it as a down day. The opposite.

There maybe some reason for the discrepancy and i would be only to happy to listen to anyone who could explain what it is. Other than that its confusing EOD chart readers and something needs to be done about the structure of the charts to fully show whats truly occurring.

Alan

It seems that there may be some wrong time-frame setups - as it is impossible for the information to be not the same - see screen shot below.

As a discussion point - daytrading can be done in numerous ways, using numerous layouts for screening and identifying high probability trading opportunities.

One textbook approach is to screen the daily bars for either 1) Continuation Plays or 2) Reversal Plays.

Depending on the most recent bar formations for the chart in question - there may be several approaches adopted for trading the following day. Most of these however, are best suited for trading the open, i.e. trading within the first 15 minutes of the opening price.

It can be better to have an intraday chart to support the daily chart, but the signals are primarily taken from the daily chart - with the intraday chart there to pinpoint the exact entry price (and stop price depending on the setup) and also provide alternative entry methods if the daily setup does not develop.

There are many ways to daytrade, the secret is to find the one that suits you best and ALSO gives the most reliable signals - the measurement criteria been your average daily profit - we are only talking about daytrrading here, swingtrading is a different ballgame.