2005-03-08, Tuesday - Update
Our system triggered three signals today for TOPT, SIGM & MFLX. All three signals generated occurred using the both the 50% pro-rata volume and calculated non-prorata Dry Up Volume on DU Cycle method of Dry Up Volume calculation.
The first signal occurred just before 10:20 AM when actual volume for MFLX exceeded the 50% pro-rata volume level of Du Cycle. Although MFLX had made a nice run upward in price early in the morning, at time of signal generation, price had fallen to $22.97 USD. Even with price improvement, MACD had fallen into negative status (-.1845) and The Stochastic Indicator had fallen below desired parameters (19.6668). As a result, we take no action with respect to MFLX.
The second signal occurred at 10:38 AM when actual volume for SIGM exceeded the calculated Dry Up Volume level of DU Cycle. We did not have price improvement at time of signal generation ($10.40 a change of -.73). Both MACD (-.0274) and The Stochastic Indicator (4.6621) fell outside our desired parameters. As a result, we take no action with regard to SIGM.
The last signal of the day appeared at 10:55 AM when actual volume for TOPT exceeded calculated Dry Up Volume for the DU Cycle method of DU Calculation. Again, we have lack of price improvement (down nearly a dollar from the previous day close) and both MACD (-.0013) and The Stochastic Indicator (20.7912) fell outside desired parameters. As a result, we take no action with respect to this signal either.
Interestingly, we had an additional signal that occurred after our normal time deadline. At 11:35 AM, volume for PACT exceeded calculated Dry Up Volume, and began to increase at a rapid pace. We had price improvement, as price at time of signal generation held at $8.70 USD. MACD appeared positive (+.1855), and The Stochastic Indicator held above our desired parameter (80.7338).
While I did not take the trade due to the signal occurring outside my trading plan, I followed the chart throughout the afternoon. Based on our normal 10% target price and 5% trailing stop loss, today's activity with respect to PACT would have resulted in a stop occurring at $9.97 after hitting an intraday high of $10.40 USD. In short, the system would have netted a near 15% gain.
As a result of missing the above trading opportunity, I think perhaps it is time I added a bit of 'wiggle room' to my trading rules to account for signals generated within 10 minutes of our time deadline.
I hope you find the above information useful.
- Spydertrader
