Trading Big Charts

I am practicing AAPLoff 233 and Daily. On 8/20, I bought puts off the 233 as my decision and the Daily as my Trend. I entered the position off 233 after my second candle appeared to close below my 8MA. I played the little bounce off the top bolinger band and it started through the 8MA. My thinking was, white candle bounced off the top BB and followed by two good red candles on a reversal signal. The 3rd candle broke through resistance. The 4th candle bumped on resistance, so I entered.

Now that I look at this trade, I feel like I am in a tight box between support and resistance, so yes, I am second guessing the trade. I probably should have allowed it to drop below the stronger area of resistance at about 496. I did not exit the position and allowed the stock to show strength towards the second half of the trading day. I cheated and just took a glimpse of my 13 (AAPL), and lost my mind! According to my experience with small charts, that 13 tells me that I am chopped hog liver in the morning. I am optomistic because Apple has always been one of those stocks that will allow me a small window of time to get out, if I choose-shortly after the open. If I choose to gamble and stay in, then it is a toss up. Soundman will like this one.....This ADD stuff has me thinking and processing this trade as I type this message- lol! What is the first stage of recovery? Yes, acknowledging that I have the disability. On another level, I forgot to take my meds, so I am in rare form today- forgive me! The good news is-ADD or not, I think I am on the right track with these bigger charts. I just have to practice a lot more and go into my zone.

My plan is to continue to practice trading AAPL and maybe 1 or 2 more stocks off big charts. I really like the idea of riding a stock for 3 weeks or a month. If I get it right, I could have big gains. Practicing and finding trades are not easy off big charts, but I will keep pushing on this approach.

Soundman-those alerts are good, but dang, I must have to many formulas. They are driving me crazy!

what I see on AAPL daily....

See if this helps. AAPL has hit resistance...scroll back your daily chart to 1/23/13. Draw ray line off bottom of candle 1/23/13 then top of candle 1/24/13 and one in center. Then look where daily candle is hitting today. Once past that ray line AAPL is good to go. That is just my analysis.

Thanks Darcy, I am all over that one! I will study this concept and hopefully get better at these bigger charts.

AAPL seems to be trading sideways on 233 with the 10ma giving some resistance and on the Daily the 10 is showing it has support around 497, indicators are still down on these charts but I feel as if they should turn around as it approached that support, interesting to watch and see.

I think NASDAQ mess yesterday is affecting many stocks today.

Got in LNKD today as a continuation rather than any HRFP. Still in as in rides the 55 Bollinger band up.

Darcy - Would you mind posting the details of your LNKD trade today?

Still in LNKD. Bought 4 Sept 240 call for $8.00. Selling now at $12.50.

This was a continuation trade. It was based on the candles laminating on the 55 Bollinger band and an E signal on all my charts. Generally if candles are stuck on the Bollinger band they will ride that band up.

I and S/O have put a 5 and 10 moving average on our 55 GW chart. We have been monitoring if there was an E on the 55 but no FP or HRFP would the trade produce profit. Over the last month we have noted that if a pattern is continuing and there was an E signal on the 55 there was a trade. When we saw the E signal on all charts including the 55 we jumped on the trade.

The trade did go sideways on the 55 but we held over the weekend because there was "no reason to leave the trade". When we saw the red candle forming on the 55 today we left our trade.

There was no FP or HRFP on the 55...it was a continuation on the 55 with E signal confirmation on the 55,34,21,13,10,5 and even the 1.

In the TAD book the E signal is used on a daily chart to purchase stock. It is beginning to look like it can be used on all charts. This is a new area S/O and I are testing. It was confirmed with this trade but I want to see more confirmation. My gunslinger is ready to run with it. We are wondering as we enter a new zone that is very slow if using the E signal on a 55 rather than a FP or HRFP will work with a FP or HRFP on the 233 or daily.

As they say on the radio 'THIS IS ONLY A TEST"...and this trade was the first using real $$.

Hope that helps.

Darcy2 Wrote:
-------------------------------------------------------
>
> In the TAD book the E signal is used on a daily
> chart to purchase stock. It is beginning to look
> like it can be used on all charts. This is a new
> area S/O and I are testing. It was confirmed with
> this trade but I want to see more confirmation. My
> gunslinger is ready to run with it. We are
> wondering as we enter a new zone that is very slow
> if using the E signal on a 55 rather than a FP or
> HRFP will work with a FP or HRFP on the 233 or
> daily.
>

Darcy, great stuff - thanks for sharing your LNKD trade.

I have been practicing the E signal on the Daily for several months. The E signal typically occurs well after the FP/HRFP, so much of the Daily move has already happened, especially in the summer months when the Daily moves usually aren't very long.

I also have started to look for trades with a Daily FP/HRFP in conjunction with an E 55-minute signal.

When trading off the Big Charts, what is the action chart for the 233 according the GW.

I use the 233 for the FP/HRFP info and then any support for the trade on the daily and weekly

Chairman then you should use the 55 to confirm the 233 FP/HRFP then go up for support. This will help you get in better and not have to wait for the close of the 233. Check it out. HINT ORANGE

Action chart is not required. It COULD be a more defined entry point but if you are trading big charts then it isnt vital to do that. When GOOG moves 50 pts why would it matter if you got a 2 pt better entry than I did? Daily or 233 trade with the weekly going your way. You wont trade as much but you will be right more.

Big Chart Trader,

I am interested in doing more with big charts, but it's hard for me to be patient. Is this something that you had to learn or is that more your personality. The hardest part for me is getting into a trade and then being immediately profitable. I just want to take the money and run instead of letting the position run.

Thanks

Are you watching the indicators or the price?

It is a learned trait to be patient in the stock market however the alternative for me is to lose a lot of money consistently trading small charts. Im not very good with any chart less than a 233. I typically prefer a weekly daily trade. Just understand when you trade a DAILY chart then that trade takes DAYS to manifest and become profitable. Dont treat trading like a random poker table that you want to win a hand or two. Treat it like a business and it will pay you like a business.

I have a question if anyone could help me see what happened with this following trade. Look at BA on 8-27. HRFP down on 233/Daily and weekly. Fell below support on Daily (50 & 10), (20&10) on 233. Even riding 55 down on BB. Market was down going in the direction of trade. Even with all that, next day on 233 slightly up and then off to upside it goes. What did I miss for it to reverse like that? Any suggestions would be appreciated. I did see where they sold some planes after the HRFP indicators the next day, maybe that caused the reversal?

I totally agree with Big Charts assessment and I am a small chart trader. All of us want to become big chart traders (well, maybe not everyone). I would love to have the luxury of not wrestling with a ton of indicators that must line up before I can consider a trade. The period of time I am in the trade, I am nearly glued to my my PC. Granted, I am only in trades an hour or two, but believe me, it will take an army to pry me away from my office more than 13 minutes while I am in a trade. That can be taxing and stressful, but when you do not know any other way, options are limited. I am continuing to practice big charts because I do not think I can comfortably retire trading off small chart. Again, I am one of those who would love to enter a trade and look at it once a day or less.

TCB

For the 233 to indicate a trade (as it appears it did) the daily would also have to be in accordance, which it is NOT. Therefore, no trade. Daily no where near the TBB and I dont think I would commit up or down based on the weekly. Also, assess your market calendar.

BCT

Thank you BCT

one of the wisest statements made on this thread.

BCT, i would enjoy knowing the top books you recommend for big chart trading.

thanks,

walle

I would recommend reviewing the the Vault section of GW material, anything about the way Buffett trades, and Trend Commandments is pretty good.

GW repeated himself many times that this is a "long term thought process for a short term result". His material would be best to review of any that I mentioned.

BCT

Hey TCB, was looking through the post and wanted to add a little of my knowledge to the BA trade on 8-27. Hope this helps.
When i stand back and access the charts for BA during that time period it is important to look at all charting time frames (W,D,233,55,34.)
When i look at the bigger time frames than the one you entered on the Daily and Weekly, the weekly is obviously in a major uptrend. Often times i have noticed that you can use the 21 MA on the weekly as like a road or trend for a big picture and the 21 MA on the weekly is upward and would definitely be telling you that puts are not likely to work. Also notice the bollinger bands on the Daily and 233 had squeezed together almost telling you there is a sideways consolidation with the indicators having come down and a breakout to the upside is about to occur. What really stands out to me the most is the fact that there is almost a bullish divergence on the daily and 233 charts. The most important of all is to know that BA is a DOW stock and you always want to trade with the DOW. The DOW at that time was nearing the bottom bollinger band on the weekly and had ALREADY expanded the daily and 233 bottom bollinger bands, how much further is it going to go? The Indicators on the DOW ( Daily and 233) had already fallen and were obviously setting up major bullish divergences on the Daily and 233 charting time frames. Also pay attention to the market calanders for the end of august. Thanks hope this helps.