Okay let's go over this one more time

IF you have a HRFP/FP on the 55, 34, and 21 with E on 55, 34, 21 and the 10, 5, and 3 YOU HAVE A TRADE!!! (Sorry the GW in my brain took over for a second there)

Today S/O got in LNKD @ 9:55... 20contracts 225 Jan call for 2.18 with a 17 cent spread. He just sold for 5.20 profit. I got in a little later...involved in something else and here is what I did...

LINKEDIN
01/16/2014 O STC LNKD Jan14 225 Call 20 $4.85 $30.00 $9,669.13
01/16/2014 O BTO LNKD Jan14 225 Call 20 $3.80 $30.00 ($7,630.70) 2,038.43
Total Realized Gain/Loss for LNKD $2,038.43
Total Realized Gain/Loss $2,038.43

S/O did not wait for a pull back. The signal was a HRFP/FP on the 55, 34, and 21 with E on 55, 34, 21 and the 10, 5, and 3.

I bought more because there was a HRFP/FP on the 55, 34, and 21 with E on 55, 34, 21 and the 10, 5, and 3. I knew I would make money. There was no risk none..na-da...zero...0. There was a HRFP/FP on the 55, 34, and 21 with E on 55, 34, 21 and the 10, 5, and 3.

So far this week S/O made $17,000.00 (rounded) and me $13,000.00 (rounded). We both exited LNKD when the candle pulled inside the BB on the 21 chart. We are done for the day.

Not bragging but if we can do this so can you. Yes we do have an advantage. We both work at home and can watch the market all day throughout the day. BUT if you have a HRFP/FP on the 55, 34, and 21 with E on the 55, 34, and 21,,,as well as the 10, 5, and 3 YOU HAVE A TRADE...trade it and if you must put in a GTC.

So the point of this post is if you have a HRFP/FP on the 55, 34, and 21 with E on 55, 34, 21 and the 10, 5, and 3 you have a trade...a real, real, real good trade!

And as GW says
TRADE!!!


(tomorrow we will switch to Feb unless a stock really POPS and keeps going)



Edited 1 time(s). Last edit at 01/16/2014 12:32PM by Darcy2.

Once again, thanks for sharing. I review all your trades and continue to learn much. I made that same trade on LNKD this morning. I got in at 9:54 and was out by 10:15 with about a 30% gain. I left a lot on the table, as I continue to work on my exit. I tend to take a little $ and run. I need to learn how to hold until the indicators tell me it's time to leave. What a Great week for you and S/O ! Thanks again.

Traildoc,

The right time to leave a trade is when you are happy with the gain you have. You aren't wrong in taking profits and closing the trade...you just leave the party early before the rowdy guest arrive! The way I look at it is never feel bad about making money.

In time you will find what chart you want to use for an exit if any. S/O and I don't really use a chart much for exit. Although if the stock looks like a pull back we get out. We do this because we trade the month we're in and this time because of expiration Friday options erode quicker.

Suggestion try Rookies 13 chart for an exit or if you are buying out in time use a 34 or 55. Mark on what chart you want to use for an exit..that mark should be close to your entry. If it looks like the stock is getting ready to get to that mark LEAVE. If the stock turns around after you have left...do not re-enter. When I was first learning I lost money doing that. This is why I seldom enter a trade after I have made $...or re-enter the same trade afetr I sold.

Quick question for you:

I understand the HRFP on the 55 34 21. But when you say an "E" on the 55, 34, 21 do you mean the MA's on that chart? If so, what MA's do u use there?
OR IS IT SOMETHING DIFFERENT.

THANKS DARCY!

E= a 5 and 10 moving average crossing over the 20 moving average forming an E up or down regardless of the chart you use. So put in the 5, and 10 moving average on all your charts.


This was a perfect trade. S/O just looked at it a few minutes ago had he remained in the trade it would have gone to a profit of $14,340.00... time frame from 9:55 - 1:50... used $4.360.00 and then subtract the cost of the trade.

Always stay aware of the location of the heavier moving averages( 20, 50 and 200) these are support and resistance. I often use the 20 moving averge as my trend line and when the candles start getting smaller I draw in a trend line.

Larger charts ie. 233, daily weekly I use a regression line. Regression lines are great for Ocean Tide trades BTW.



Edited 1 time(s). Last edit at 01/16/2014 03:07PM by Darcy2.

Thank you ! That makes more sense!

Darcy2 Wrote:
-------------------------------------------------------
> IF you have a HRFP/FP on the 55, 34, and 21 with E
> on 55, 34, 21 and the 10, 5, and 3 YOU HAVE A
> TRADE!!! (Sorry the GW in my brain took over for a
> second there)
>

Darcy, just a quick question about the HRFP/FP (3 timeframes) & E charts (6 timeframes) you have set up and watch. I'm asssuming the HRFP/FP on the 55, 34, and 21 are in the context of what GW considers HRFP/FP, correct? I'm assuming you're not waiting for candles to close when they show a HRFP/FP, as the first 55 min candle had not closed per your LNKD trade example, but merely waiting for the indicators to cross.

As for the E-charts (55, 34, 21, 10, 5 and 3), when the 5 MA& 10MA cross the 20 MA, does it matter whether the 5 MA is greater than or less than the 10 MA, as long as both have crossed the 20 MA?

One last observation, do you have a simple way of watching 9 charting timeframes all at once? I plan to create a formula in StrategyDesk that will look for these conditions (all 9 HRFP/FP and E charts) for the stocks I track/trade. Trying to decern an entry point by watching 9 charts seems a bit onerous

I always trade off of big charts, so this is more of an experiment for me to see if I can trade off smaller charts in my copious free time, LOL! Thanks in advance for your respones, Darcy! Keep up the good work!

RT: "I'm asssuming the HRFP/FP on the 55, 34, and 21 are in the context of what GW considers HRFP/FP, correct?"

No the candles on the 55 do not have to close. If you have the 21 and 34 charts going in the same direction you will know where the 55 will go (34+21 = 55). This is why you need a strong ADX (above 25) The ADX gives you the strength of the trend.

RT: "As for the E-charts (55, 34, 21, 10, 5 and 3), when the 5 MA& 10MA cross the 20 MA, does it matter whether the 5 MA is greater than or less than the 10 MA, as long as both have crossed the 20 MA?"

Yes. On an up you want the 5 above the 10 and on a down the 5 beneath the 10. You want them having crossed the 20 and to be opened...Like the letter E not laminated.

RT: "One last observation, do you have a simple way of watching 9 charting timeframes all at once?"

We do not watch all the charts at the same time. I have 6 charts all on one screen on my lap top. S/O does the same. We start looking at the open on the QUOTE SHEET recording writing on a sheet of paper the price at the open. We then look at the 55..move to the 34...to the 21...then to the 10...8...and 3...marking on the smallest chart where the candle is located at the time we look. It doesn't matter about the close we are looking for strog moves. We move quickly from chart to chart not staring at the entire screen at all charts. We look in this order:

1. We write down 15 different stocks writing down the (change this is in SD for S/O and for me it is Change since the open in Qcharts) We write this price and an arrow for up or down. Naturally the largest move has our interest.
This is the basket and movement in the basket.
2. Those stocks that spark our interest are marked on the 3/1 chart (S/O has 1 chart I have a 3...you choose which one of these small charts you want.)
3. On those stocks that sparked our interest we then go back and look to see how it moved using the line we drew on on small chart and move to see if there is an E on the 10, 5, and 3. We move then to the 21 to see if there is a HRFP/FP. I look at the 34 while S/O looks to the 55.

All of this takes about 3 minutes.

My charts line up like this

quote sheet...55, 34, 21 and under there E charts only 10, 5, and 3 ALL the charts have a 5 and 10 moving average

S/O's quote sheet 55, 10 (E chart only) 21, 5, 8 (E chart only), and 1. ALL the charts have a 5 and 10 moving average.

S/O is a gun slinger so he likes the 1 chart. I am not so I like the 3. That is the only difference in our charts.

With Qcharts I can scroll down until I reach China so I also have a 233, Daily, Weekly Monthly as well as a quote sheet for the DOW only. Looking at this quote sheet lets me know how strong the DOW will pull the market. Such as one day this week the market was up so I went to my DOW quote sheet and told S/O ..."The market is changing....Look how much red there is in the DOW." I also have 2 quote sheets for point losers and one for point gainers. I use these when I can't find a trade using my quote sheet. I also have a quote sheet for my stock WLT and a quote sheet that will give me each stock as I click on them the price and volume.

Awesome trade Darcy. For anyone interested in how to capitlize this trade utilizing big charts please assess that the weekly chart found support on the 50 MA in the FWTZ with the daily being outside the bottom BB on 1/7. Darcy and her S/O sounds like they have fined tuned their craft and you can capitlize that same move with some basic knowledge about big charts. 1/7's close was 209 a share and LNKD went to 234 yesterday. No "E" was required and it wouldnt have mattered if you have Qcharts,TOS, or trade station. Im sure if you had seen LNKD, a very volatile stock, outside the BBB in the Fall winter with the weekly on support then you would have been able to make that trade.

Darcy,

Again, awesome trade. Very impressive. Not putting down your methods in any fashion just stating to others that there are many ways to make it work.

BCT

BCT I always appreciate your insite...Always!

Thanks much, Darcy!

Based on that information, I created the following SD formula that ya'll are welcome to try using the Custom Field Wizard, or simply as an Alert Manager setup in SD. For those of you using SD, please feel to vet this formula and let me know if I've missed anything.

This formula first checks for simultaneous FPs on 55, 34 and 21 (since FPs are subsets of HRFPs), and then checks for E on 55, 34, 21, 10, 5 and 3:

(MovingAverage[MA,Close,3,3,55] < MovingAverage[MA,Close,2,0,55] AND MovingAverage[MA,Close,3,3,55,1] >= MovingAverage[MA,Close,2,0,55,1] AND
StochasticRSI[StocK,13,21,5,3,55] > StochasticRSI[StocD,13,21,5,3,55] AND StochasticRSI[StocK,13,21,5,3,55,1] < StochasticRSI[StocD,13,21,5,3,55,1] AND
MACD[Diff,Close,8,13,5,55] > 0 AND MACD[Diff,Close,8,13,5,55,1] <= 0 AND
MovingAverage[MA,Close,3,3,34] < MovingAverage[MA,Close,2,0,34] AND MovingAverage[MA,Close,3,3,34,1] >= MovingAverage[MA,Close,2,0,34,1] AND
StochasticRSI[StocK,13,21,5,3,34] > StochasticRSI[StocD,13,21,5,3,34] AND StochasticRSI[StocK,13,21,5,3,34,1] < StochasticRSI[StocD,13,21,5,3,34,1] AND
MACD[Diff,Close,8,13,5,34] > 0 AND MACD[Diff,Close,8,13,5,34,1] <= 0 AND
MovingAverage[MA,Close,3,3,21] < MovingAverage[MA,Close,2,0,21] AND MovingAverage[MA,Close,3,3,21,1] >= MovingAverage[MA,Close,2,0,21,1] AND
StochasticRSI[StocK,13,21,5,3,21] > StochasticRSI[StocD,13,21,5,3,21] AND StochasticRSI[StocK,13,21,5,3,21,1] < StochasticRSI[StocD,13,21,5,3,21,1] AND
MACD[Diff,Close,8,13,5,21] > 0 AND MACD[Diff,Close,8,13,5,21,1] <= 0 AND
MovingAverage[MA,Close,10,0,55] > MovingAverage[MA,Close,20,0,55] AND MovingAverage[MA,Close,5,0,55] > MovingAverage[MA,Close,10,0,55] AND
MovingAverage[MA,Close,10,0,34] > MovingAverage[MA,Close,20,0,34] AND MovingAverage[MA,Close,5,0,34] > MovingAverage[MA,Close,10,0,34] AND
MovingAverage[MA,Close,10,0,21] > MovingAverage[MA,Close,20,0,21] AND MovingAverage[MA,Close,5,0,21] > MovingAverage[MA,Close,10,0,21] AND
MovingAverage[MA,Close,10,0,10] > MovingAverage[MA,Close,20,0,10] AND MovingAverage[MA,Close,5,0,10] > MovingAverage[MA,Close,10,0,10] AND
MovingAverage[MA,Close,10,0,5] > MovingAverage[MA,Close,20,0,5] AND MovingAverage[MA,Close,5,0,5] > MovingAverage[MA,Close,10,0,5] AND
MovingAverage[MA,Close,10,0,3] > MovingAverage[MA,Close,20,0,3] AND MovingAverage[MA,Close,5,0,3] > MovingAverage[MA,Close,10,0,3])

OR

(MovingAverage[MA,Close,3,3,55] > MovingAverage[MA,Close,2,0,55] AND MovingAverage[MA,Close,3,3,55,1] <= MovingAverage[MA,Close,2,0,55,1] AND
StochasticRSI[StocK,13,21,5,3,55] < StochasticRSI[StocD,13,21,5,3,55] AND StochasticRSI[StocK,13,21,5,3,55,1] > StochasticRSI[StocD,13,21,5,3,55,1] AND
MACD[Diff,Close,8,13,5,55] < 0 AND MACD[Diff,Close,8,13,5,55,1] >= 0 AND
MovingAverage[MA,Close,3,3,34] > MovingAverage[MA,Close,2,0,34] AND MovingAverage[MA,Close,3,3,34,1] <= MovingAverage[MA,Close,2,0,34,1] AND
StochasticRSI[StocK,13,21,5,3,34] < StochasticRSI[StocD,13,21,5,3,34] AND StochasticRSI[StocK,13,21,5,3,34,1] > StochasticRSI[StocD,13,21,5,3,34,1] AND
MACD[Diff,Close,8,13,5,34] < 0 AND MACD[Diff,Close,8,13,5,34,1] >= 0 AND
MovingAverage[MA,Close,3,3,21] > MovingAverage[MA,Close,2,0,21] AND MovingAverage[MA,Close,3,3,21,1] <= MovingAverage[MA,Close,2,0,21,1] AND
StochasticRSI[StocK,13,21,5,3,21] < StochasticRSI[StocD,13,21,5,3,21] AND StochasticRSI[StocK,13,21,5,3,21,1] > StochasticRSI[StocD,13,21,5,3,21,1] AND
MACD[Diff,Close,8,13,5,21] < 0 AND MACD[Diff,Close,8,13,5,21,1] >= 0 AND
MovingAverage[MA,Close,10,0,55] < MovingAverage[MA,Close,20,0,55] AND MovingAverage[MA,Close,5,0,55] < MovingAverage[MA,Close,10,0,55] AND
MovingAverage[MA,Close,10,0,34] < MovingAverage[MA,Close,20,0,34] AND MovingAverage[MA,Close,5,0,34] < MovingAverage[MA,Close,10,0,34] AND
MovingAverage[MA,Close,10,0,21] < MovingAverage[MA,Close,20,0,21] AND MovingAverage[MA,Close,5,0,21] < MovingAverage[MA,Close,10,0,21] AND
MovingAverage[MA,Close,10,0,10] < MovingAverage[MA,Close,20,0,10] AND MovingAverage[MA,Close,5,0,10] < MovingAverage[MA,Close,10,0,10] AND
MovingAverage[MA,Close,10,0,5] < MovingAverage[MA,Close,20,0,5] AND MovingAverage[MA,Close,5,0,5] < MovingAverage[MA,Close,10,0,5] AND
MovingAverage[MA,Close,10,0,3] < MovingAverage[MA,Close,20,0,3] AND MovingAverage[MA,Close,5,0,3] < MovingAverage[MA,Close,10,0,3])

I had a PM...

I was asked how I manage to write down 15 different stocks in less than 3 minutes...

I have made a form that S/O and I use. I used excel and made 4 columns and I have these stocks already written down in this form. I leave several blank spaces in case there is something we want to add that day.

I have printed off these charts and we used them over and over erasing what we have written.

This chart consists of 4 blocks and 11 lines and I have 4 of these blocks on one sheet.

The 15 stocks we have on this prepared list are: CMG AMZN CF NFLX AAPL VZ WLT LNKD WYNN VJET VWM MA BIDU BIIB TSLA



Edited 1 time(s). Last edit at 01/17/2014 04:19PM by Darcy2.

Darcy,

Let me add my thanks as well. I always look forward to your excellent posts. Over the past few months, reading your posts detailing your thoughts and trading strategies has helped me tremendously. Gary's courses have provided me with a great market background, but your way of explaining things has sort of clicked with me and provided a more practical knowledge base.

So, thank you.

Quote
RaleighTrader
One last observation, do you have a simple way of watching 9 charting timeframes all at once?

RaleighTrader,

I've got a three-monitor setup. My middle monitor is setup very similar to what Darcy has described above. I have the below grid of charts setup on my left monitor so that I can quickly see what those stocks are doing.



The above is a screenshot from about 15 minutes after market open (not today's market). Each chart is a 10 minute chart (cyan 10 in top left corner) and displays enough information to allow for rapid assessment. For instance, based on what is shown above, I can very quickly tell that BIDU & NFLX are potential CALL trades (all green indicators), APPL is a potential PUT trade (all red indicators), and I would not consider trading any of the others at this time since they have mixed red and green indicators.

Here is a Darcy setup for SD



Charts are left to right top to bottom 55 34 21

10 5 3

The columns will indicate a fp on 55 34 and 21 and e on all six charts. The e signals also check the 5 and 10 MA are heading up or down and that the 5 is above or below the 10 depending on direction.

If all the columns are the same color then it should be safe to trade that direction. I suppose that the 55 would not have to be colored per Darcy's comments that the 55 candle does not have to be painted. I have included the ADX on the charts to check if the Red or Green is above the YELLOW (25) line for directional strength. Then candles are color coded to indicate a fp as well as the cyan indicator



Edited 1 time(s). Last edit at 01/20/2014 05:54PM by mtut.

Darcy and BCT are awesome. Thanks for teaching us all.

wallemac

MTUT,

I finally got around to creating an SD workspace to mimic Darcy's setup (similar to your's above). The only difference is, I consolidated the e signals (for 55, 34, 21, 10, 5 and 3) into a single column on the quote sheet (red for up, green for down), since all e signals have to be in place to do the trade. Now that I'm thinking about it, I'm wondering if having each e signal in it's own column allows you to see the trade coming at you, as each e signal time frame fires. I'll practice this set up for a while and see how it goes Thanks much to you and Darcy!