Spydertrader's Jack Hershey Equities Journal II

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Quote from billp:

Hi Dougcs,

Congrats on your trades.

Just want to learn. How many monitors do you have? Do you look at the time and sales and market depth also?

Reason I asked is because I have difficulty in following more than 1 or 2 stocks at 1 time and just want to have a glimpse into a professional trader's setup who is able to trade so many stocks in 1 day. Thanks

Anybody else who wants to contribute are greatly welcome
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I use Tradestation with one monitor. I'm not good visually so I usually don't watch the charts. I do set trendline alarms and use TS's Radarscreen. I've found the Radarscreen to be very usefull and do most of my JH trading using it as the tool.

I have workspaces for the Basic stocks, Rockets and Bruno's. I've programmed indicators to alarm when entry conditions exist.
After that happens, I draw a chart (15 or 30 minute fractal) and look for risiing volume/rising price formations. I tend to stay away from stocks that jump at the open and prefer ones where the volume comes in later in the day. However, I do monitor those with strong opens by charting them and setting trendlines with alarms and will take a position if I see the appropriate PV relationship.

RE: GES:

It opened sharply higher on 5/3 and as it exceeded 5% I ruled it out for the day. I liked the action on 5/4: It rose nicely on rising volume, pulled back a bit on falling volume, and I entered when volume started rising again. I exited today when I observed it falling on rising volume and vice versa. Entered at 45.63 and exited at 46.44.

ALso note that the volume for the 5/4 1000am bar was light, ie an intraday DUV and volume rose sharply 1030-1100am, analagous to FRV only intraday. Seeing that made me happy.

NOte also how on 5/4, you could have made several trades based on the second derivitive of volume as it was in sync with the second derivitive of price. Buy when the second derivitive crossed above zero and sell when it crossed below. I think this is what Jack referred to as Lissajous patterns in his "Too long" post.


Chart is attached.

Good luck with your trading.

Doug
 

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Quote from dougcs:

I use Tradestation with one monitor. I'm not good visually so I usually don't watch the charts. I do set trendline alarms and use TS's Radarscreen. I've found the Radarscreen to be very usefull and do most of my JH trading using it as the tool.

I have workspaces for the Basic stocks, Rockets and Bruno's. I've programmed indicators to alarm when entry conditions exist.
After that happens, I draw a chart (15 or 30 minute fractal) and look for risiing volume/rising price formations. I tend to stay away from stocks that jump at the open and prefer ones where the volume comes in later in the day. However, I do monitor those with strong opens by charting them and setting trendlines with alarms and will take a position if I see the appropriate PV relationship.

RE: GES:

It opened sharply higher on 5/3 and as it exceeded 5% I ruled it out for the day. I liked the action on 5/4: It rose nicely on rising volume, pulled back a bit on falling volume, and I entered when volume started rising again. I exited today when I observed it falling on rising volume and vice versa. Entered at 45.63 and exited at 46.44.

ALso note that the volume for the 5/4 1000am bar was light, ie an intraday DUV and volume rose sharply 1030-1100am, analagous to FRV only intraday. Seeing that made me happy.

NOte also how on 5/4, you could have made several trades based on the second derivitive of volume as it was in sync with the second derivitive of price. Buy when the second derivitive crossed above zero and sell when it crossed below. I think this is what Jack referred to as Lissajous patterns in his "Too long" post.


Chart is attached.

Good luck with your trading.

Doug
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Doug - interesting chart you have there... I see you have some custom indicators on your chart. Is there anything (even ideas) that you can share around the information/indications on them?

I'd understand if you can't. thanks.
 
Hi Dougcs,

Thanks for the detailed explanation. It was very informative.

I'm more of a chart person although am now trying to look at market depth and time and sales more.

Agree with you on the stocks that open strongly only to show weakness soon after. It's either you jump in almost immediately when the stock opens for trading and trail a tight stop or wait to see whether its true strength /just a false breakout.

Interesting analysis on the volume. IMHO, sometimes volume behaves opposite of stock movement ie stock can rise on weak volume and retrace on stronger volume. That's why I have not fully incorporated as detailed an analysis on volume as you have done. Glad to hear that the volume analysis has serve you well.

All the best in your trading
 
Those of you who have not yet had an opportunity to download and review the files from my web site should do so as soon as possible. I received a rather large (416 mb) (from the IBD Tucson Meetup Group) video file recently and need to make space. I have broken up the 416 mb file into several parts. I have already uploaded Part A (of seven parts) onto the web site. Beginning Monday Evening, I will replace the files currently available with new files (B - G) each day in an effort to conserve space. I plan to update the Journal when the changes occur. I apologize for any inconvenience caused by having to delete the files. I simply did not anticipate the huge size of these video files.

- Spydertrader
 
Quote from gooch87:

Spydertrader, would you say I am on track with this analysis?
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Anytime you see price fail to breach an upper trend line (or in this case, see price breach and fall back), you have a perfect opportunity for an exit. With CKCM we see not only trend line resistance, but also resistance caused by the most recent high. Since price failed to close above either of these points, exiting the trade resulted from sound decision making. Having said that, the indicators for CKCM do look rather nice. MACD Histogram continues to rise, and we have The Stochastics (5,2,3) overshooting the 80 level, then pulling back. Jack describes this exact scenario in his "Bruno R" Post. If The Stochastics (14,1,3) makes it into the 80 level (and above) and begins to 'intertwine,' you might have a stock which plans to run for a few days. OF course, all this depends on volume coming back into this equity (something which volume has failed to do over the last few days [as you pointed out]). I'd have CKCM back on my watch list for Monday (and the next few days if needed) in order to look for continued price improvement (after this current period of pullback). Reviewing the previous 20% (or greater) price runs for CKCM should provide some insight into what to anticipate.

Good Trading to you.

- Spydertrader
 
Spydertrader,

Thanks for the files. Just managed to see one and find it useful.

Can we actually save the files here ie in Elitetrader due to limited space in the other website? This will allow for future viewing from others who may not be able to view them at the present moment (due to they may not have read this journal yet/future generation etc). If can't I understand. Thanks.

Also, do you use log chart or linear chart? This is because the trendlines/channels will differ (sometimes by a bit, sometimes by much more) depending on the chart type

Thanks once again
 
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