Channel Trading

Most of the daily noise in the middle of the day on thick stocks can be a channel is about .20-50.

Today hasn't been a day at all for this strategy.

Robert
 
Originally posted by Babak
This may seem like a stupid question (don't shoot!) but what is your definition of a channel?
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The sideways action that most of the thick high volume stocks do in the middle of the day.

Robert
 
Originally posted by RSprengers
Then I think you should wait for a channel with some decent moves. I do agree that one cannot / should not trade less then 500 shares (since you need a very big move to get some gain woth the trade)

But there's also the fact that once a stock diverges from it's channel, it usually does it fast so when you're trading 5000 shares and you get a fast move against you, you risk a lot more than you will be able to make during the channel.

Just my opinion.
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by looking for a channel that has huge moves back and forth means added risk. It shows a lack of support /resistance which isn't what you want. Just trade the top to the bottom for 50 times in the middle of the day.

Robert
 
Originally posted by rtharp
One of the strategies mentioned in Financial Freedom Through Electronic Daytrading which was written by my father and Brian June

Oh dammit robert - here we go again, plugging some guru's book! blah blah blah....:mad:

Just kidding. :D

Anyway, most of my trading is channel trading. I am apparently blind to trends, so it really works with my own personal style. Nothing I like more than a stock that doesn't really ever go anywhere.
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Well personally I have been more of a news trader, I'll trade certain patterns, do arbitrage, but have never been to good at trading the middle of the day.

I got bored yesterday and found I wasn't doing that bad at it. It's great when we have volatility like today but there are days where the pit just gets dead and we go nowhere.

I'd like to take advantage of those days and wanted to get a discussion on it.

Robert
 
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