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Swing and Intraday Set-ups
- Thread starter Commisso
- Start date
I love the short, but only intraday. This scares me, especially with the volume spikes.
See what I mean by a better chartist than me about the gaps
www.hardrightedge.com/wheel/hregaps.htm
See what I mean by a better chartist than me about the gaps
www.hardrightedge.com/wheel/hregaps.htm
Pullbacks are my bread and butter trade, but I am not a scalper. I trade the hours to days timeframe.
I would not take MANU and XMSR as trades at the current time because, to me, the volume behaviour is all wrong. I look for volume to dry-up to very low levels on the pullback and to expand dramatically on the subsequent advance. For these two we saw volume increasing on the recent drop.
The behaviour of MANU just before the Nov 26 advance is an excellent example of what I like to see.
I see dry-up in volume as the volume equivalent of a narrow range day and, indeed, it often happens at the same time as a narrow range day. It represents a place of maximum disagreement between buyers and sellers. Buyers don't want to pay up and sellers won't sell for less.
However, if you choose the stock well, which means one showing a a strong, dynamic, upward trend in the case of pullback trading, it is a situation of unstable equilibrium. This is because the weak-holders have already been shaken out during the pullback. However, the nimble short-term traders who sold at the top of the previous run are looking to re-enter for the next wave and newcomers attracted to the stock are also looking to get in at the start of the next advance. Evidence of their enthusiasm still being present is the surge in volume on the next move. In fact their enthusiasm is sometimes evident just before the move starts if you track volume on a shorter timescale.
Sorry, I have no trade suggestions as I have not yet done my research on Friday's data.
I would not take MANU and XMSR as trades at the current time because, to me, the volume behaviour is all wrong. I look for volume to dry-up to very low levels on the pullback and to expand dramatically on the subsequent advance. For these two we saw volume increasing on the recent drop.
The behaviour of MANU just before the Nov 26 advance is an excellent example of what I like to see.
I see dry-up in volume as the volume equivalent of a narrow range day and, indeed, it often happens at the same time as a narrow range day. It represents a place of maximum disagreement between buyers and sellers. Buyers don't want to pay up and sellers won't sell for less.
However, if you choose the stock well, which means one showing a a strong, dynamic, upward trend in the case of pullback trading, it is a situation of unstable equilibrium. This is because the weak-holders have already been shaken out during the pullback. However, the nimble short-term traders who sold at the top of the previous run are looking to re-enter for the next wave and newcomers attracted to the stock are also looking to get in at the start of the next advance. Evidence of their enthusiasm still being present is the surge in volume on the next move. In fact their enthusiasm is sometimes evident just before the move starts if you track volume on a shorter timescale.
Sorry, I have no trade suggestions as I have not yet done my research on Friday's data.
I would agree with you it would be better for volume to dry up on the decline, however i believe the higher up volume on Friday than the volume on the down days is significant. As far as supply and demand goes it's possible that the sellers got sold out on that decline. Plus, this sector is very strong. That being said it's possible there are some better setups.