Making $5K with $20K each month

Here is an example on trading stocks with trendline, fibonacci, and volume change indicator only. This is an AH trade I made on CSCO. In extended hours trading, stochastic/MACD /RSI indicators usually not work too well. I simple turned these indicators off, just use the trendline.

Short entry, reason:

Resistence @26.89 (it is the upper trading range in market profile), it has a LH indicator on the swing, which represents a fibonacci resistence level, then it breaks the uptrend channel after closed below 26.87, volume change indicator (blue candle light up) means no more buyers, SELL signal starts to form (I usually ignore this indicator too in extended hour trading). A short at 26.85. This chart was done in real time:

smallcapt78.png


20 minutes later, the price dropped to 26.71, this is the lower trading range in the market profile, also see the volume change indicator light up (selling is done), LL indicator showed up, it is a fibonacci support, also notice the orange bars at $26.70 to $26.60, this is the fibonacci support zone, the orange bar started to form when the price was at 26.78. The short position should be covered here. $0.10 drop, not gaining much, but the technique works, this is one way to trade it with small capital.

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With DNDN's recent mania, it reminded me OSIP, I traded OSIP when it announced a cancer drug several years ago. I just found OSIP's Tarceva had really helped these folks with advanced-stage lung cancer. Many of them have recovered well afer taking the pill.

http://www.cancercompass.com/message-board/message/all,1804,1.htm

It's a silver bullet for non-smokers with lung cancer, it is less effective or maybe not effective at all for smokers. Unfortunately, my father-in-law is a heavy smoker.

This drug is not cheap, $3000 for 30 tablets if buy from online Canadian drug store, the patient needs to take one tablet daily.

Hmmm, the problem is how do we pusuade him just stop smoking now, he even doesn't know he has the cancer.

I think I'll tell this good news to my wife tomorrow, at least make her feel better, this is a little hope, or I've tried my best effort :-)
 
I cannot find template 1 in the page, it starts at template 20.


Quote from PennyTrader:

yc47ib,


(1) Tier 1 indicators - the price and volume action. Look at the trendlines, don't trade if there is no clear trend (on Ensign autotrend setup, I put the bar to 0 to capture every trend).

Using trendline, dynamic support/resistence combined with fibonacci retracements/extensions (you can download template 1 in the link below). Looking for ascending triangle/descending triangle/symmtrical triangle. Looking for TA indicators for clue on which way it breaks.

Volume change indicator - very imporrtant.

Many free templates, look at Bline2XFinal, this is the most popular one.

http://www.dacharts.com/templates/index.php

(2) MAs, use MAs or market profile as a reference of where there majority of the trades took place, where the big $ is, use the them to serves as resistences/supports - this is another way to find R/S.

(3) TA indicators - I believe the most useful indicator is stochastic (35). If stochastic (35) indicator is down, even the regular stochatic (14) is up, that's short-lived pop, same to a stock is trending up, even the short timeframe stochastic (14) is down, if stochastic (35) is up, it is safe to take/hold long even if your entry was somwhat higher.
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The 1st template:

OR+Pesv-A Variation on OR w/Pesav OR+Pesv-A 03-31-07 fibzones 81

Variation of OR w/ Pesavento Swing TOC May05

This template is my modification of TOC¡¯s excellent template ¡°Opening Range and Pesavento Swing V2¡±, May 9, 2005. The power of TOC¡¯s template is that it dynamically calculates and draws the Fibonacci retracement and extension zones for each price swing as time progresses. Uniquely, only the relevant zones to current price action are shown, once price travels outside that zone, it disappears and the new zone levels appear.

Opening Range Modification:

The template Objects ¡°OR S&R1¡± and ¡°OR S&R2¡± define the opening range parameters, and vary from TOC¡¯s. Lines A and B in ¡°OR S&R1¡± define the open range time, in this example, the price range in the first 30 minutes of the trading day. This time can be changed to trader preference. The additional lines are simple multiples of the OR added to the top and subtracted from the bottom of the OR. So, ¡°or+X1¡± line is the OR added to the OR high, ¡°or+X2¡± is 2xOR added to the OR high, etc. And, ¡°or-X1¡± is the OR subtracted from the OR low, etc.

Note that I used two DYOs for the OR because I found that the last 2-3 line labels of the DYO do not show on the chart consistently.

Also, I¡¯ve found that the opening range is only consistently accurate for minute charts in Ensign. Volume, tick and range charts vary considerably.

Pesavento Swing Modification:

I¡¯ve added a second Pesavento Patterns study object marking the HH, LL, HL, etc. swing levels, and Ensign feature added by Howard in late 2006. Note that the ¡°Min. Size¡± (the minimum swing price length) and ¡°Min. Bars¡± (the minimum bar count for each swing) parameters must be the same for each Pesavento Patterns object.

As I only want to see the Fibonacci zones, I removed some other objects from TOC¡¯s template and made some slight adjustments to the zone boundaries.

Observations:

Although I have developed and used this template trading the ER2 index futures, this template can be applied to any trading instrument. I have tested it on many stocks, crude oil futures and the EUR futures. It also can be used for any time frame, minute, volume, tick and range (note the OR exception above).

Note, however, that the Pesavento Pattern parameters must be tuned for each instrument and time frame. For example, the Min. Size for a $30 stock will be much less than for an $800 index future, and the Min. Bars, will be typically greater for a tick chart vs. a minute chart.

Thanks again to TOC for his excellent DYO.

fibzones


Quote from yc47ib:

I cannot find template 1 in the page, it starts at template 20.
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the 8 ema and the 21 ema on a 3 minute chart are pretty good tools the MM usually test the 8 ema if it doesn't break thru you know the trend will most likely continue
 
Yes, 8/21 MAs are working well when the stock is trending. For short period, I use HMA instead of the regular SMA. HMA is more responsive and smooth. In fact, on my chart, I have two MAs, one is 12 HMA, another another is 30 HMA, I use HMA crossing to generate a BUY/SELL signal with the help of ADX (check for trending). The 9 period HMA is the green line, and the 30 HMA is the blue line.

As long as the green line is GREEN, hold on to the position. If it is about to cross down the 30 HMA and the Bline is already at 90%, price is at top of the BB, have to be careful, tighting up the stop - choose to exit.

The entry is when stochastic (9) crossed the Bline and both are at 10%.

On the TA indicator - Bull-Bear, these are ADX lines generated with different HMAs (3, 9, 30) as the data point, they're more responsive and accurate than the stochastic to measure trending or choppy - since ADX is the best indicator to check if a stock is trending or choppy.

This is the real time JPY/USD real time chart on 3 minutes:

12 HMA and 30 HMA:

smallcapt85.png


Sell signal:

smallcapt86.png



The entry:

smallcapt83.png




Quote from Bighead255:

the 8 ema and the 21 ema on a 3 minute chart are pretty good tools the MM usually test the 8 ema if it doesn't break thru you know the trend will most likely continue
More...
 
Sorry to hear about your father-in-law's illness. Hope everything goes well for him and your family. I will go back to China in June and come back on 7/4. Most likely will gain a few pounds of weight :-)
 
I bought 100 DNDN in AH at $17.50 last night, plus holded 1K CEGE, darn it, I will have a long way to go today.

I gamble, I lose, everytime.
 
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