Divergences

[romik]

Quote from mschey:

Care to comment on your profit taking strategy? How do you determine them? Do they really perform better than waiting for the opposite signal to occur? Or is it better to let your winners run with a trailing stop?

I have only applied a divergence based call once before on a STOCK prior to this, I mainly implement it in futures, where I do not use trailing stops. My main PT1 is an average price at the low of the first trough in the oscillator where a divergence occured. If price declines after hitting PT1 i would normally exit @ entry level. This approach is probably best geared towards intraday trading using relatively tight stops and/or adjusting position size according to the stop level used.

Have a look at the daily chart of EBAY, 3BLD in MACD HIST and check out at which point price hits resistance and resumes the decline, that's where I would envisage an exit being PT1 and PT2=exit @ entry.

 

[4re]

Alright Romik.

I am looking forward to checking out your journal. Since I have started trading more options and less futures I hope you don't mind me visiting in here.

Good luck with this journal I really look forward to it.

4re

P.S. I hope you still pay us a visit when you have time also.

 

[romik]

AAPL (NASD) Apple Computer, Inc

Current: $57.27
PT1: $61.00
PT2: $65.00
PT3: $70.00 (longer TF)
Stop: $47.00
4BLD!!! in MACD HIST/BLD in RSI on a daily chart attached

I really have a good feeling about this one making a nice rally any time soon, if fundamentals do not interfere with the technicals. BTW I know nothing about fundamental based investing, so these are pure TA calls.

http://finance.yahoo.com/q?s=AAPL

 

[romik]

Quote from 4re:

Alright Romik.

I am looking forward to checking out your journal. Since I have started trading more options and less futures I hope you don't mind me visiting in here.

Good luck with this journal I really look forward to it.

4re

P.S. I hope you still pay us a visit when you have time also.

Thank you very much, I'll be looking at the averages here, that's all I am interested in really. I know these are hypothetical paper whatever trades, but I would have traded them the way I describe it here, so, if I will see a positive average in these calls I'll ask my mother-in-law for some funds

 

[romik]

Quote from romik:

SIN06 Silver July 06 future contract

Actually this is a call I made earlier on at the price of $10.20 in the $Silver$ thread.

Current at the time of call: $10.20
PT1: $10.90
PT2: $11.50
PT3: $12.00
Stop: $9.50

BLD "B Class" in MACD HIST on a daily chart attached

NOTE: I have to give credit to another ET member ___B1S2___ from whom I've picked up quite a bit of information regarding divergences. B class divergence is where the 2 lows in the indicator are pretty much at the same level though price has made a lower low or higher high;

I actually do hold SLVs. So I do have some interest in this one

http://www.futuresource.com/charts/...b=CANDLE&st=BOLL(20,2);MACD(12,26,9);RSI(14);

PT1 been hit last Friday I believe
PT2 will be taken today most likely

http://www.kitco.com/market/

 

[4re]

Quote from romik:

Thank you very much, I'll be looking at the averages here, that's all I am interested in really. I know these are hypothetical paper whatever trades, but I would have traded them the way I describe it here, so, if I will see a positive average in these calls I'll ask my mother-in-law for some funds

I'll just about bet that you will make this very successful. You better start hitting her up for that money.

4re

 

[romik]

LU (NYSE) Lucent Technologies, Inc

Current: $2.42 1/2 max position and scale in @ $2.30 with 50%
PT1: $2.60
PT2: $2.75
PT3: N/A
Stop: $2.20
3BLD in MACD HIST on a daily chart attached
I also like CCI on weekly here.


http://finance.yahoo.com/q?s=LU

 

[romik]

T (NYSE) AT&T, Inc

Current: $27.89
PT1: $26.50
PT2: $25.00
PT3: $23.00 not certain on this one, see below
Stop: $29.00
B Class BRD in MACD HIST/BRD in CCI on a daily chart attached. If price fails to go through 28.50 on high volume, then a double top will be in the making and PT3 will be more possible in that case.


http://finance.yahoo.com/q?s=T

 

[romik]

Quote from mschey:

...Do they (PTs) really perform better than waiting for the opposite signal to occur?...

Just to clarify mschey, as reversals can be triggered by fundamentals as well as technicals, I prefer not to wait for a reversal, but lock in profits based on the principle I mentioned earlier. This is just the way I prefer to do it.

 

[romik]

Quote from romik:

SIN06 Silver July 06 future contract

Actually this is a call I made earlier on at the price of $10.20 in the $Silver$ thread.

Current at the time of call: $10.20
PT1: $10.90
PT2: $11.50
PT3: $12.00
Stop: $9.50

BLD "B Class" in MACD HIST on a daily chart attached

NOTE: I have to give credit to another ET member ___B1S2___ from whom I've picked up quite a bit of information regarding divergences. B class divergence is where the 2 lows in the indicator are pretty much at the same level though price has made a lower low or higher high;

I actually do hold SLVs. So I do have some interest in this one

http://www.futuresource.com/charts/...b=CANDLE&st=BOLL(20,2);MACD(12,26,9);RSI(14);

Rolled to SIU06

http://www.futuresource.com/charts/...b=CANDLE&st=BOLL(20,2);MACD(12,26,9);RSI(14);