Lesson learned: Importance of trading Out vs in charts

[KCalhoun]

https://www.investopedia.com/terms/...he term is commonly used,day is an inside day.


It's a good topic..... I have found that focusing on trading when the S&P is above the previous day's high or below the previous day's low is much better then trading on days in which the S&P is inside its previous day's range. This is mainly because volatility is lower during inside days, which are often choppy.

The same is true for individual stocks and ETFs; I find that take many more stops when I trade inside range charts versus gap continuations. Thoughts?

 

[meatyoaker]

I’ve also noticed that phenomenon, and tested over 15-20 years. There is certainly edge in those outside range, high volatility environments. Except I’ve noticed they tend to mean revert and try to fade them. Sounds like I should explore the continuation side some more.

 

[KCalhoun]

I’ve also noticed that phenomenon, and tested over 15-20 years. There is certainly edge in those outside range, high volatility environments. Except I’ve noticed they tend to mean revert and try to fade them. Sounds like I should explore the continuation side some more.

Right re mean reversion very common especially for under-$10 big gappers. Best setup is very small under-$1 gap continuations for stocks in the $15-$40 range, following strong 45degree angle up prior day.

 

[themickey]

One needs to be careful because often we see things which is our imagination.

 

[themickey]

havn fun with Ken

 

[murray t turtle]

https://www.investopedia.com/terms/o/outside-days.asp#:~:text=The term is commonly used,day is an inside day.


It's a good topic..... I have found that focusing on trading when the S&P is above the previous day's high or below the previous day's low is much better then trading on days in which the S&P is inside its previous day's range. This is mainly because volatility is lower during inside days, which are often choppy.

The same is true for individual stocks and ETFs; I find that take many more stops when I trade inside range charts versus gap continuations. Thoughts?

%%
The way i trade\ I hate when SQQQ or QQQ or any\ take out the weekly low+ then SQQQ turns around + goes up good!!!!!!! BUT since IBD founder like that pattern/it seldom bothers me like it used to............................................................................................................
I use SPYG more than spy;
but what helps me more than spyg\ is when sqqq PSQ + related // moves much better all day than spxu,spxs+ above 50dma better/i go with that................................................................................................[EDIT\i do record spy......sds weekly\daily.......]

 

[themickey]

%%
The way i trade\ I hate when SQQQ or QQQ or any\ take out the weekly low+ then SQQQ turns around + goes up good!!!!!!! BUT since IBD founder like that pattern/it seldom bothers me like it used to............................................................................................................
I use SPYG more than spy;
but what helps me more than spyg\ is when sqqq PSQ + related // moves much better all day than spxu,spxs+ above 50dma better/i go with that................................................................................................[EDIT\i do record spy......sds weekly\daily.......]

FWIW, I found weekly lows/highs signals unreliable, cannot use in TA. But that's just me. I once used them but no longer.

 

[murray t turtle]

FWIW, I found weekly lows/highs signals unreliable, cannot use in TA. But that's just me. I once used them but no longer.

%%
The probleM with that + i still use it some, the oil stocks etfs like XLE\they tend to be much bigger peaks + valleys than weekly candles+ tend to underperform in the long run, so have to take trading profits+ cut a smaller loss on RYE.IF i had increased size on XLE like its wise on tqqq\QQQ i would have lost money as of early today...........................................................
A good variety of ETFs help +/cant predict , i thought today would be a very sharp sell off + it maybe @ bottom these low l areas or downtrend an APRIL bottom
NOT a prediction/not bank insured

 

[meatyoaker]

Best setup is very small under-$1 gap continuations for stocks in the $15-$40 range, following strong 45degree angle up prior day.

@KCalhoun Any good examples? I think I found an example of what you mean, but just wanted to confirm. Like this?

At the moment I don't have a day trade strategy that uses buy stops, but this seems like a good place to explore. Thanks!

EDIT: AMC today too.

 

[murray t turtle]

I’ve also noticed that phenomenon, and tested over 15-20 years. There is certainly edge in those outside range, high volatility environments. Except I’ve noticed they tend to mean revert and try to fade them. Sounds like I should explore the continuation side some more.

%%
Exactly, on a %, %% measure;
unless you prefer m\reverse, in that case you could ignore the main trend.
QQQ monthly charts do plenty of trends month$ in a row, good vol + good volume.[Make sure to use a 10 or 2o year monthly chart, in qqq\ that way a 2or 3 month red reversal seems ok/LOL]