"E" Signal Trade Question

TWC 9/17/13 Trade

I actually entered this trade as a 5 minute play off of the 5 minute chart on 9/16/13 expecting to be out of the trade early this morning. The mistake I made was in buying the Oct 120 calls. Even though the stock rose $1.57 by 11:20, the market maker moved the bid down and the ask up such that there was a 60 cents spread for most of the time the stock was rising. The bid did finally move up 45 cents to where it was profitable. Anyway, assuming things looked as they did above at around 10 am, which chart would be used for the entry? Note: the bottom left most chart is a daily chart. By the way, is this the correct setup for the "E" chart? (Top from right to left is 21, 34, 55, 233, Daily, Weekly; bottom is 3, 5, 8, 10, Daily.)

Perhaps Darcy can chime in here but for me, essentially I wait for the candle to close on the 10 min chart that shows the green line (10MA) crossing the blue line (20MA).... that's generally when I get in, so long as the 5min and 8min chart aren't flattening... that's just for entry, before hand I make sure there is FP or HRFP on the 21, 34, and 55.... then I pick the one w/ the best looking 233 and D

My S/O did great for a while with 5 minute trades



Edited 1 time(s). Last edit at 02/20/2015 02:06PM by Darcy2.

Just my little 2 cents....

When I enter a trade and I see the stock has gone up or down, but my option price continues to stay the same, I am looking to get out. If I forgo my commissions, no biggie. I am out!

One more..
If I am in a trade and the stock is moving really good and my option price is moving nicely, I am feeling pretty good. When your option price has moved well with your stock movement, but all of sudden the stock is still moving but the option price has started to loose speed, I get out. Sometimes I might prematurely exit, but I rarely have losing trades. When the option price starts moving against you, potential profits mimnimize very quickly (seconds). I typically rely on my charts to tell me when to exit, but when I start looking for a reason to exit because I am happy in Hawaii, I watch that process closely because I do not want to give any of it back.