Simple Profitable Method

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Here is a chart of the stock CTEL, it was up over 100% today at one point, I have no idea why. If you were scanning the early market you should have noticed this price action. I see two good trades here, the initial break up to $7.10 and the reversal at $5.60. The second trade was a no brainer and was an easy $.80 pickup, not bad on a five dollar stock.

10 minute time frame, with 5 period SMA offset -2. If you look at the high bar of the day, the next bar fails to break out to a new high, then the next bar fails, and this is the pattern to look for. It takes a while to recognize this patttern if you are a new trader. You should go short the next bar with a stop at $6.70 this gives you a much better entry. The CCI would have gotten you in early on the reversal too but it is not always reliable.
 

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Trader28,

Thanks, I love trading the Macd and it makes sense to me and I
trust it. I think your right, trading the Macd is a lost art. It's really a great indicator.

The Macd let's you know where you are in the market. Are you above or below the zero line? Are you using momentum in your trading (Do you have the wind to your back)?


The Macd is my primary indicator. I don't trade against it. (Been there, tried that). Of all the indicators that I've studied I like
the Macd the best.

It's a keeper...

snarlyjack
 
Bill321,

The Macd is my primary indicator. It tells me where I am at in
the market. Am I on the "right" side of the market? Do I have
momentum to my back? Am I above or below the zero line?
Is the macd moving towards the zero line? Up or Down? Is the wind to my back or am I fighting a head wind? This is the information that the Macd tells you, plus more!!!

The On Balance Volume to me is like the waves hitting the ship.
We are going in the right direction as (determined by the Macd)
but, we are getting hit by waves.

So our hand is always on the wheel steering the ship. The
OBV indicator was developed by Joseph Granville and is a
cumulative indicator that relates price to volume.

I've been watching OBV for a long time (you should check it out on the internet) but it seems pretty sensitive to price movements. In other words OBV trending up, means that the
(YM, is what I trade) is going up. Or, OBV trending down means
(YM prices) are going down. In my watching of the indicator it seems to track prices very closely, short term.

Like waves hitting the ship, I watch it. But my true indicator is the
Macd. But together, in my opinion (macd plus OBV) just makes
the whole strategy stronger. But, that's my opinion, I am sure
other's have different opinions. My bottom line is...I just wanta
make money and have fun... Hope this helps you...

snarlyjack
 
Neet,

The answer to the "cliff notes" is, not really...

Their is much information hidden in the text of this book.
What has happened is:

Trader28 started the post with a Simple Profitable Method...
And all kinds of traders tried it, liked it and shared their
experiences with it. With like 1750 posts now.

The only thing I can tell you is...

If you take the time to read it all, it will save you many months and thousand of dollars. You cannot buy this type of information
anywhere that I know of. So take a week or two of your life and
devote the time and energy to reading the info. You will be
rewarded for your time and effort. Enjoy the process...

snarlyjack
 
Quote from bill321:

snarly/t28


how do u guys use OBV indicator. any info is appreciated
More...

>>The On Balance Volume to me is like the waves hitting the ship.
We are going in the right direction as (determined by the Macd)
but, we are getting hit by waves.<<

According to snaryljack's charts this type of "double"-OBV is a very interesting tool.

Unfortunately my software does not provide it that way - "double".
My assumption is that some smoothing/tweaking or whatever might
provide an even first class indicator.

Charly
 
I am working on a mechanical trading system that combines volume and price. The system multiplies the change in price times the volume to give a value that I call VdeltaP. VdeltaP values are added to give a cumulative total. I calculate moving average crossovers from cumulative total values. The system appears a little more profitable than a moving average crossover system calculated with price alone.
 
Thank you.

Quote from snarlyjack:

Neet,

The answer to the "cliff notes" is, not really...

Their is much information hidden in the text of this book.
What has happened is:

Trader28 started the post with a Simple Profitable Method...
And all kinds of traders tried it, liked it and shared their
experiences with it. With like 1750 posts now.

The only thing I can tell you is...

If you take the time to read it all, it will save you many months and thousand of dollars. You cannot buy this type of information
anywhere that I know of. So take a week or two of your life and
devote the time and energy to reading the info. You will be
rewarded for your time and effort. Enjoy the process...

snarlyjack
More...
 
i am experimenting with this method..looks good.

1. OBV - what parameter do u find best for 2 minute and 5 min time frame.

2. i think this method gets u in very good trades. i would like to see some discussion on exit strategy. i think most important with this method.

a. if u trade SPY. have a 20/25 cents stop.
on a move +15 cent 1/3 exit
on a move of + 40 for next 1/3
rest 1/3 on 5 min crossover.

try to avoid taking 20/25 cent stops. probably a 40 dollar trade.
if u trade 3000 SPY share it still works.

also thinking of trading YM instead.

with 40 bucks u can trade 8 contract.
 
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