Trading the US the Naz/Mr. Charts Way

[stevespray]

PS $30.20 was the low of last nights after hours session.

Steve.

 

[stevespray]

MATK

A very satisfactory afternoons work. Just been playing the 1 min channel. These often break downwards in my opinion.

Steve.

 

[lloydsc]

Qlgc

Good trading, stevespray.
Interesting that you play the one min channel.
As you say, a decent day's trading. I'm often finished by 4.30/5.00 but QLGC screamed at me it was going down when I was about to pack in at 5.00 so I stayed on screen longer. 80c during the US lunchtime chop made it worthwhile.
Currently enjoying an evening short in Merq.
Thanks for posting,
Richard

Mr Charts

When the move in QLGC started at about 12 o'clock (EST) did your level II screen signify the intensity of the move. I can see a couple of factors as to why you would have been alerted to the move in the first instance but, to my untrained eye, it could have easily turned out to have been mid-day chop.

Thanks
Steve

 

[lloydsc]

"intensity"?
Not if you mean how far it was going to fall.
Had it turned into lunch time chop I would have exited for around a scratch trade.
Had it gone against me, i.e. started to rise, I'd have exited straight away.
In other words, the risk was minimal.
On level 2 there was clear resistance, so both looking on a macro (chart and pattern basis) and micro view it seemed a very high probability trade.
Richard

Mr Charts

I didn't explain what I meant very well but you've answered the question anyway in that level II combined with other factors increases the probability of the trade going the way you anticipated.

Thanks
Steve

 

[Salty Gibbon]

On level 2 there was clear resistance, so both looking on a macro (chart and pattern basis) and micro view it seemed a very high probability trade.

Hi Richard

Do you mainly use Level II as an indicator of support and resistance, or do you use it as a momentum indicator also ?

 

[stevespray]

PS - It's Friday !

 

[stevespray]

Rumour about that OBL may have died. If further news developes during real time hours then you can be sure of a big reaction. I'll be keeping tight stops if I step away from the screens.

Steve.

 

[stevespray]

Update on OBL...looks like its not true....this from Sky News...

OSAMA BIN LADEN 'NOT DEAD'

An Islamist website has inadvertently triggered rumours that Osama bin Laden is dead.

The article about the al Qaeda leader carried a headline suggesting the Saudi fugitive had died.


It prompted flutters on the financial markets and triggered rumours on internet sites of bin Laden's demise.

However, closer reading of the article revealed that the author was simply suggesting the 9/11 architect could die at any time and Muslims should be prepared for his death.

Yasser al-Siri, an Egyptian dissident who ran the Islamic Observation Centre in Britain and who is considered close to al Qaeda, told the Al Sharq al Awsat newspaper that bin Laden is alive.

Diplomats in Pakistan also said it was unlikely the world's most wanted man would have died without them hearing.

Bin Laden's current location is a mystery.

It is thought he is hiding out in the mountainous frontier region between Pakistan and Afghanistan.

August Hanning, the head of Germany's BND foreign intelligence service, told a security conference this month that bin Laden had managed to disappear to Pakistan after the US invasion of Afghanistan in 2001 and remains there.

Pakistan's President Pervez Musharraf, a strong ally in the US-led war on terrorism, said in March that interrogation of al Qaeda operatives meant they knew where bin Laden was 10 months ago.

But the trail has since gone cold, he admitted.

 

[Salty Gibbon]

Is that a "yes" to the first question, both questions, or the second question only Richard ?

 

[Naz]

Here is a low risk trade from yesterday.Nice and slow lasted about 3 hours.Risk was above the high of the day,which was 15c.Reward was 77c.So the trade was a 5/1r/r trade.

 

[fazalv]

Another lower low reversal setup from yesterday.

 

[The Beyonder]

Hi Fazalv,

I presume that's a real chart, if so it'd be nice to see who it is and the prices to get a feel of how fast it's moving, or even the time frame.

Thx

 

[Naz]

First trade closed out.KOSP +79. r/r approx 4/1.

Naz

 

[wal]

Nice move CECO...gap fill + nice bonus

 

[neil]

Ceco

Nice move CECO...gap fill + nice bonus

Wal,
Could you post a chart please?

 

[boy]

Wal,
Could you post a chart please?

Here you go.

 

[neil]

Ceco

Here you go.

Thanks for the chart.
These type of formations remind me of "Darvas" box type trades. I like these type of consolidations prior to a move - it focus's ones' mind on the price and volume action.
I trade forex however, since observing many share charts, both here and elsewhere, I am coming to the conclusion that shares hold better trading opportunities. Oh dear - I could be undergoing a Damescene type conversion

 

[boy]

Nice trading Richard.

 

[wal]

I'm not in a position to really comment on this as I don't trade the YM. However, I used to trade emini s&P and Nasdaq futures before I saw the light and realised how much easier US stocks are.
Orders are placed and withdrawn to create the desired impressions.
In my emini trading days I never found DOME sufficiently significant to predict anything beyond the following 2-5 seconds - and then only really at important levels such as common s/r levels and floor trader pivot points.
If anyone finds otherwise, please say so.
Richard

When I started day trading (used to position trade) I started with Nasdaq stocks and was earning quite a tidy little income.

Then I wents to futures. Why? It seemed like a logical progression, seemed sexier to be a futures trader etc.

I found it was MUCH harder....and my income dropped.

So for me it's like I've re-seen the light and now back with the stocks. I'm no guru mind you, but this is where its at as far as I'm concerned.

But when I traded futures I got to know some really talented players who have a real edge with the futures and you'd never get them to switch. Horses for courses 'n all that

To me though, you can always find better risk/reward setups somewhere on the nasdaq.

Cheers

 

[jitasb]

Hello All..

With FOMC days (like today) and consequent choppy trading..does anyone actively try to 'fade' moves at "obvious" points. For example at previous day's hi and lo.

Or will this put you on the road to ruin...

Ta..