History as a mirror

J

JHmethod

Interested in trading and found this site some time ago. Reading threads here on and off till mid last year funded an account swing trading stocks for few months, although break even i realised i needed a plan. And here we are, after rereading thread and comments from people i thought i can learn from (i.e: nodoji, redneck, maverick74, dbphoenix ect), i came up with a plan. And this thread serve the purpose to refine my approach and trading plan. Also learning from people who wish to chip in give me a tip or two.

Approach: using price action to swing trade stock. End goal swing trade stock and intra day swing trade futures.
 
Top down approach to scan for stocks. Sp500 ranging. Identified XLY, XLP and XLK sector stronger than sp500 therefore the place to search for potential stocks.

Watch list: GT, KO, RAI, VGR, ARMK, BAH, G, IM, IPG, KR, VLRS, ZAGG, ANGI, ATVI, IDTI, IPHI, MXIM, NVDA, PLAB.
sp500 291215.png
 
GT: entry 32.80, stop 32.29 below previous day low 28/12 bar, target 35. Risk reward objective 2:1 or more.

Reason:
-from relative strong sector compare to the market

-stock stronger than the market

-horizontal support held pink line and the way price action played out in that area. 18/12 heavy volume bar even more so than 29/10 but spread of the bar not wide and no follow through

-break of down trend line and held, 28/12 test bar closing on the high with low volume

gt.png
 
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G: entry 24.82, stop 24.49 below previous day low 23/12 bar, target 26.

Reason:
-from relative strong sector compare to the market

-stock stronger than the market

-horizontal support held (pink) and bounce right back (red). Price pierce the red line with high volume selling climax, close on in the middle suggest there's demand coming otherwise it would close on the low 18/12 bar watch for a test. Bounced right back next day, test came on the 22/12 bar with low volume but spread a bit large i like to see narrow range test.

-price broke down trend line and held. open trade next day.

g.png
 
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IDTI: entry 27.11 one tick above high of 22/12 bar, stop 26.34 one tick below low of 22/12 bar, tagret 29.

Reason:
-from relative strong sector compare to the market

-stock stronger than the market

-the second down bar that pierced the support line on high volume but finish near the high suggest demand coming in. Look for test of this bar. Which came, the third down bar pierced the line this time low volume but wide spread. Next bar volume even lower and the low of the down are getting higher. Confirms support find.

-break of down trend line and held above confirms change of trend and the trade.

idit.png
 
IPHI: 27.56 one tick above high of 22/12, stop 26.96 one tick below low of 22/12, target 32.

Reason:
-from relative strong sector compare to the market

-stock stronger than the market

-Support held and test bar 22/12 with low volume close on the high narrow range. Enter above high of the test bar. Also test bar close at the line of down trend line

The trade stopped out on 28/12.

iphi.png
 
KO,RAI,BAH,IPG,KR,ATVI,NVDA,PLAB. All setting up at resistance.

Missed trade on MXIM. 18/12 high volume down bar didn't close on the low and follow through next day. Down bar after the high volume down bar showed lower volume and didn't go lower than 18/12 bar, could enter one tick above the high of the bar.

mxim.png
 
Stopped on IDTI. Place a buy order on MXIM above high of 31/12 bar.

I might have place stopp loss too tight will continue monitor.
 
I can't stand breakouts on stocks any more, way too often of failures of patterns to make retail lose or breakeven. Have you considered buying support and doing a debit Put spread so you are hedged a bit and holding the long Put up to 5 days and if stock profitable, keep the short puts to redeem loss on long puts?
 
JHmethod said:
IDTI: entry 27.11 one tick above high of 22/12 bar, stop 26.34 one tick below low of 22/12 bar, tagret 29.
More...

JHmethod said:
Stopped on IDTI.

I might have place stopp loss too tight will continue monitor.
More...


Hey JH

First and foremost - I am not second guessing / hind sighting your trade - rather offering up food for thought


As to going long - look back a bit further - price was in a range.., at at the top of it to boot

upload_2016-1-1_20-42-17.png




And that the bitch of going long at the top of a range - before B/O confirmation

SL needs to be immediate - meaning..., trade either B/O and works - or it doesn't and we need to exit immediately

Preference would always be wait for confirmation - FBOs are intentionally created to lure in / trap the impatient

===============

Otherwise - it very possible price will retrace to the opposite side of the range - and there we sit losing money needlessly

Like I said Sir - not second guessing - just offering up stuff to consider

Success Sir

RN
 
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