Spydertrader's Jack Hershey Equities Journal II

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Spyder (or anyone who has deep experience) -

I bought TASR (broke through volume, MAcD positive, price was up over open and previous day) but only one line of the slow stoch (14) broke 80, the trailing line (3) was not above 80 - it was trending up, but not past 70 (? as a guestimate. )

Did I follow the proper proceedure, or was I too quick on the trigger?

Thanks!

ps- I'm trying to trace interesting bumps in some of these DU stocks when the stock doesn't hit its target, but it appears that some Hershey watchers are trying to get in early on a possible entry. - I will keep you apprised if I find a positive corrolation that might be exploitable for quick half dollar movements :)
 
Quote from Penfold:

I bought TASR (broke through volume, MAcD positive, price was up over open and previous day) but only one line of the slow stoch (14) broke 80, the trailing line (3) was not above 80 - it was trending up, but not past 70 (? as a guestimate. )

Did I follow the proper proceedure, or was I too quick on the trigger?
More...

On the (attached) 30 minute TASR chart, I assume you purchased your shares after the 10:30 AM Time Frame (red circle) based on the volume numbers you provided (orange arrow). If so, you simply experienced a False (Failed) Break Out (FBO). Using the Low Band Dry Up (LBDU) numbers for an entry trigger beyond 10:30 AM causes an increase in the number of FBO's seen. Based on my LBDU numbers for TASR (roughly 390,000 shares) you received a trigger for TASR after the 10:30 AM Time Frame (beige icon). Also the %K Stochastic (blue line on chart below) should fall above 80 [for Stochastics (14,1,3)] when you receive a signal to go long. Although you probably viewed a slightly different stochastic line in real time (most likely above 80), we can now see the blue (%K) line falls below 80 at the 10:30 Time Frame. Typical of an FBO.

To reduce the number of False Break Outs experienced, use LBDU by 10:30 AM, and Average Dry Up by 11:30 AM (all times Eastern) for your volume signals.

FBO's don't always end up causing losses. Sometimes they start heading higher once the pullback has completed. You might just see TASR head higher before the EOD.

I hope that helped.

- Spydertrader

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1050284>
 

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Quote from Penfold:

Spyder (or anyone who has deep experience) -

I bought TASR (broke through volume, MAcD positive, price was up over open and previous day) but only one line of the slow stoch (14) broke 80, the trailing line (3) was not above 80 - it was trending up, but not past 70 (? as a guestimate. )

Did I follow the proper proceedure, or was I too quick on the trigger?

Thanks!

ps- I'm trying to trace interesting bumps in some of these DU stocks when the stock doesn't hit its target, but it appears that some Hershey watchers are trying to get in early on a possible entry. - I will keep you apprised if I find a positive corrolation that might be exploitable for quick half dollar movements :)
More...

I agree with Spyder re. the FBO. I was watching it but did not see entry conditions being met.

I continue to watch it as it may have been pulled down with the rest of the market and may be tradeable later.

It has just bounced off a short term trend line but volume was too low for me to take entry.

Doug
 

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Minutes after I wrote the above re. TASR; it did show volume increasing and I took entry expecting price improvement.
Entry: 10.48
Stop: 10.38

Doug
 

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TASR

Out at 10.55 for a small gain as it met resistance at the day's high set earlier at 10.62 and did not break thru. May try it again during the late session move.

Doug
 
I sat on the sidelines as my CKCM and ENG positions continue to bleed... :eek:

These two positions are gonna make or break my month, lol

Many lessons learned in my first full month of Hershey equity trading
 
After reading that Spydertrader was watching SMSI I watched it too. Now that I am looking at the chart this evening, I see that my trade was a little more risky. My entry was near the top of the channel, but at the time it did not seem very risky.
After the purchase I expected the price to rise more but when it pulled back the first time, I planned my exit near the top of the channel for sure. Certainly the price could have come down but I already planned a wash trade and had my finger on the button. When it approached 13.21 for the second time I sold. It was just a 2.6% but very instructive for me. A late bruno_r trade.

Thank you to everyone on this board for your constructive contributions.

Thanks to MB trading for the .02 on the market order.
gooch87

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1050886"></img>
 

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