Trading the US the Naz/Mr. Charts Way

[Grey1]

COST did not rise to the 35.95 to be shorted against MEDI long but MEDI did the Job and rallied to 26.20..

I did not take the trade but if I had taken at the time and shorting COST @ market ( 35.87) instead of waiting for COST to hit its upper VWAP ( 35.95) then the trade would have been a profitable and most important a risk free trade ..
Again as you saw in MEDI 's case the Momentum was on the side of falling stocks than the rising one.. This is another confirmation of trend trading well before other participants seeing the trend..

I have already taken 4 trades with a total of +82C on average of 2000 stocks ..

 

[Stock Pimp]

mr Rich, sorry Charts!! I do appreciate your charts as I mentioned before I trade the Dow. I use Sierra, it looks as though you use Lycos, you always mention time and sales and I have seen this before on the free lycos chart. Is there anything similar on sierra? By the way nice charts, although you already know this.... Hogs

 

[Grey1]

Around 5.25 UK time ( according to my post and time stamp by the T2W ) I did say I would have shorted COST @ 35.95 ( only For for hedging purposes) against Long MEDI if it did touch the upper VWAP .. 2 hours after COST had a high of the day the exact price of 35.95 ( more luck than any thing else) to revert back to its mean as shown on the chart below.. No postion was taken as there was no long candidate at the time ..

IT WOULD TECHNICALLY BE WRONG TO TAKE A SHORT POSTION ON STRONG DAYS SUCH AS TODAY.. IT HOWEVER DOES NOT MEAN ONE WOULD NOT MAKE $$$ TAKING A SHORT POSTION .. ALL IT MEANS IF ONE USES TA FOR HIS/HER ANALYSIS SHOULD NOT IGNORE THIS BASIC CONCEPT OF TRADING ..



ALL ABOVE IMHO

 

[Newtron Bomb]

mr Rich, sorry Charts!! I do appreciate your charts as I mentioned before I trade the Dow. I use Sierra, it looks as though you use Lycos, you always mention time and sales and I have seen this before on the free lycos chart. Is there anything similar on sierra? By the way nice charts, although you already know this.... Hogs

Hi hogs

You can get T&S in sierra but i'm assuming that you are using someone like mytrack for your data feed. in which case you need to add the function to you feed.


HTH
Newtron Bomb

 

[wheezergeezer]

Chartman, I enjoyed your write up , I want to say thank you and weldone, its much appreciated by novices, as a fairly new trader forgive my dumb questions........but (1) whats the attraction of the us markets (2) if I decided to go on the course, my knowledge is very little what do you recommend I need do to put myself in a good positon so I can get the best from the course,
and finally (3) your probaly going say your asking the wrong guy !............But I would value you opinion............thanks

 

[ChartMan]

I am the wrong guy, as I may be seen to be biased, although I try hard not to be.Plus I don't trade stocks.... Trading US stocks is generally accepted as being more profitable, BUT it is a long road to get there. Before considering a course, you MUST be familiar with all the basics of TA and trading, else you will be wasting good money, whoever you go with. I know there are basic TA courses around for a couple of hundred£ and maybe that's a start. Good books- Trading the financial markets by J J Murphy- available from our book shop. You didn't say just how experienced or inexperienced you were..... BTW, pls continue this thread in General Trading Chat, or First Steps.

 

[wheezergeezer]

Chartman, thank you for the info, Iv'e been trading with a purpose since April 03 , UK telecom stocks, managed to keep ahead so far having first bought in 2002., so I claim to be a novice trader, trading more by feel, or intuition than vast experience, l'm the first to admit I need educating, I realise that there are lots of different directions to go into I have so much to learn, but never the less Love trading, regards........jk

 

[one/two]

COST VWAP

Grey1
private message for you.

 

[Grey1]

Thanks for the PM .. I will reply shortly but I would appreciate if we post it here so that all our younger traders could benefit..

regards

 

[one/two]

sure.

 

[Mr. Charts]

atvi bbby merx infs nflx matk dige fred schn ttwo amln mdco rmbs amzn espd sndk medi
are my prime watch list as the market opens.
If I don't get the moves on any of these there's plenty of other good stocks.
Today is an inside day and key way points to watch are 1418 1410 1401 1394 1385

 

[Mr. Charts]

I hope some people found my watch list useful and profitable in their trading.
The entries should be obvious, the exits were all on reading the tape.
RMBS
long 27.08
sold 26.87
for loss of - 21

 

[Mr. Charts]

ATVI long 18.06
sold 18.70
for profit + 64

 

[Mr. Charts]

TTWO long 28.25
sold 28.95
for profit + 70

 

[oatman]

Mr. Charts, How many stocks do you run your scans on please?

 

[Mr. Charts]

Oatman,
The whole market apart from sub $5 stocks.
Richard

 

[blash]

Mr Chart's

How do you watch 17 stocks all at once and when using a Web based charts system, from my experience web based charts tend to be difficult to flick through many charts.

Maybe you could validate my interpretation of the trades.

RMBS

Trending up and broke yesterdays and todays first half hour high.

ATVI

Again breaking the first half hour high although it looks to have broke just before 10:00am

TTWO

Entry on the pullback.


As most of your trades appear to be within the first half hour or just after do you not find it very frantic especially when watching 17 stocks plus others that were on your list.

Are you using stop orders for your entry's

Cheers

 

[Grey1]

MR Chart

Quote "The whole market apart from sub $5 stocks. "


1) Do you have a scanner which scans over 1000's stocks for you or you using other methodologies?

2) Does this scanner use pattern recognition to short list, your stocks or just basic Volume, Price ( high , Low ,...).

3) what are your criteria's for the short listing process?

Regards ..

 

[Mr. Charts]

Good evening blash,
filtered down the number to three ongoing as minutes passed; watched in quotebox

yes,yes,yes but all in conjunction with my reading of the tape, that is necessary to confirm

no, I trade differently in the first half hour to the rest of the day

I don't use stops


numbers - not hard when you are used to it and I filter them down very fast

HTH

 

[blash]

Hi Mr Chart's

Presumably the list of 17 is as a result of watching a news server for stocks in the news.

But how do you filter out the trades in such a short timescale, do you just pick out the ones that gap at the opening?

I guess the old fashioned term of 'reading the tape' means in todays trading arena 'price action'?

Cheers

BTW Mr Chart's

Why have you just voted negatively against me?