Spydertrader's Jack Hershey Equities Journal II

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Quote from Spydertrader:

Using the Unusual Volume Sheet (posted by Jack and reconfigured by cnms2) provided some excellent entry signals today. ASPV, ATHR and later BTUI all followed the same pattern - triggering a buy when actual volume exceeded the Unusual Volume Threshold in a given time frame. Of course, such a signal also requires a positive price (compared to previous day). Qcharts (and Quotetracker) users have this indicator available in the quotesheet (Vol % in Quotetracker). I haven't followed the sheet yet for exiting criteria, but plan to study it further.

- Spydertrader
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Spyder,

Could you explain or point to the reference how you are using this?

I've been staying out of JH trades for awhile due to the big down move a couple weeks ago, but now I'm back in. I've been playing around using my 2nd derivitive techniques for shorts. It looks workable but I'm not finished.

Also, I've looked into using the Rocket setup intraday and it looks very good when coupled with high volumes.

An example is BTUI, chart attached.



TIA,
Doug
 
And the Rocket short setup also works well even on a big up day like today; this is the only signal I got using this setup for possible short.

Doug
 

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dougcs,

Could you explain the JackGaussian volume indicator you are using or point me to a discussion on it?

BTW - for anyone who's curious I had done a study during SyderTrader's first journal of various volume characteristics calculated by the WL Chartscript compared to the average volume level. In some cases I used 50 SMA of volume, 60 EMA of volume, 65 EMA and/or Yahoo 3M Average of volume depending upon what my data source was at the time. The statistics are as follows - remember each value is the volume type (DU, FRV, LBDU, UBDU, Peak & Previous Day volume) divided by the average volume.

For example, the actual values for min and max Average DU are 0.211*EMA(Vol,65) to 0.53*EMA(Vol,65). Likewise for the other values listed in the attached file.

I also did a statistical summary of Market Cap for each of the stocks to potentially use as a screening variable instead of Float.

I was trying to develop a simplified screen to use with Stockcharts.com based on average volume for detecting the DU condition and setting the FRV and Peak thresholds. Stockcharts has Mkt Cap, but not Float.


-ace
 
Quote from stevegee58:

For those of you who entered ASPV today, peak volume was reached today as well. The rules say to exit within the first 15 to 30 minutes the morning after peak volume is reached.

I'm holding overnight and probably selling the morning pop tomorrow.
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I thought if FRV was reached then that was a signal to hold, not sell, the following morning?

I also have not been in the water since the recent market drops (and other non-trading distractions); today was a really good day for a few tickers, I think it is time to start getting back on the horse.
 
Quote from dougcs:

Could you explain or point to the reference how you are using this?
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Gladly. If you recall Jack's advice in the Camtasia videos, he suggested to sort the daily Watch List using an additional column titled 'Unusual Volume' in Qcharts.

For those not using QCharts, Quotetracker has a similar column titled 'Volume %" which should also work. For those who prefer excel (or another program), Qcharts calculates Unusual Volume by taking the day's current volume total and dividing it buy the 65 Average in order to arrive at a percentage.

I had sorted my Final Universe for a while using the Unusual Volume Column, but noticed no benefit until recently. The various columns on the Unusual Volume Correlation Table (UVCT) represent points in time where one can compare actual volume to volume often seen during a breakout (in our case FRV).

Over the last two days, I have sorted The Final Universe as always. However, I watched the quotesheet looking for two things: Improved price and Actual Volume (displayed as a percent in the Unusual Volume Column) which exceeded the lowest Dry Up Value in the UVCT by the corresponding time frame. In other words, I looked for the cream rising to the top.

Once I see Price positive and Unusual Volume levels above threshold for FRV, I interpreted that as a signal to go long. Today, ASPV, ATHR, ENG, COGO and BTUI all exhibited this behavior. In fact, BTUI breached the unusual Volume Threshold right about the same time you were entering your rocket trade. Price for BTUI at that time held at $15.45 USD.

Now, I have yet to monitor the Unusual Volume Levels for exits, but according to the UVCT instructions, one should see continued improvement in volume over time - or at least a maintenance of the current levels - with improved price. Otherwise, one should interpret this lack of maintenance as an exit signal.

Admittedly, I have more testing to do before I could provide an exact methodology using the methods described above. However, I wanted to point out the usefulness of the tool, so others might run their own tests. While I still have some questions with respect to the UVCT, I hope to have those questions answered next week when I attend the meetings with Jack and others in Tucson.

I hope you found the above information helpful.

- Spydertrader
 
Thanks Spyder,

will need to go over the camtasias again and reread your above post to wrap my head around the use of this tool...

cheers.
 
Quote from chapper:

I thought if FRV was reached then that was a signal to hold, not sell, the following morning?
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correct chapper,

but if volume goes beyond PV on the same day, then that is the signal to close out the next morning...
 
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