You can always learn something..Darn it!

You know it isn't so bad when you are right but when someone comes along and shows you were wrong you get a little

So it goes with my S/O....

I was fed up with WYNN and how the option was jerked around so out it went from my basket. But NO not S/O. He had to leave it in and rub my nose in his trade today!

He bought wyNN @ 10:29 ... 6 out of the money 210 Feb Puts for 6.15. E only signal on all charts

"Okay", I said, "you'll be sorry when you see how the Market Maker jerks your chain!"

S/O sold @ 1:38 for 9.55 over a 1,900.00 profit.


We both bought AMZN this morning @ 9:50... 3... 355 Feb PUTS for 10:30 and sold @ 1:54 for 19.20. Signal E only over a $2,300.00 profit.

S/O and I are wondering and something we will check out for tomorrow. It looks like those stocks that are way up one day are way down the next. So after the close and @ 5PM S/O and I will be writing down those stocks that closed down over $5 just to see how ths looks tomrrow. **Just looking**

Rememeber E signals are off a 5 and 10 moving average crossing a 20. The signals are faster and lately there has been few HRFP/FP with a E signal.



Edited 1 time(s). Last edit at 02/06/2014 09:11AM by Darcy2.

Sweet trades !

Darcy - just to be clear, these trades were made using ONLY the E signal on all the charts you use for that. No other factor caused you to trade (other than picking stocks that move of course)?

cheetah,

The trades were made off the E signal only. We use the ADX as always and money flow. We did not use a FP/HRFP.

We believed that since the market has been so jerky (up one day down the next) FP's or HRFP's just wouldn't happen as much at least not until we get some movement in the market in the same direction. So we had been watching these stocks and noticed that the E signal still worked even with the market being so jerky.

We also noticed that in times likes these we needed to pay a lot of attention to the location of the larger moving averages. For instance if the E signal is there but it happens before a xing on the 50 wait until the candle closes above the 50. For us this would be the 55 or the 34 or the 21 chart depending on which chart the 50 moving average appears.

We also noticed to watch out major candle signals. You can get a copy of the major candle signals from CandlestickForum.com a web site by Stephen Bidalow. I bought the mousepad, copied the mousepad and I keep this sheet of paper with me durnig my trading. My brother and sister bought me his flash cards for candlestick signals and I was grilled on these by my kids on a daily basis. I still have to refer to my major signals sheet from time to time and my Market Makers Edge. I am not comfortable yet leaving these tools anywhere but beside me.

If anyone has not gone to his (Stephen Bigalow) web site and at least listened to him you should do that. It helps you. Remember however he looks at a daily chart and buying stock. He is not 100% accurate which in the long run makes you realize even experts mess up now and then! You can ask him questions and he will answer. It is really

Thank you Darcy. I understand your thought process.

Traded FB today based on E signal charts, along with HRFP on 55,34,21. I enterd at 10:00 of the 10 e chart and left around 11:20. Bought the Feb 62.50 call for $2.12 and sold for $2.75.

Good 4 u TCB!

S/O and I trade NFLX.

We jumped on it @ 9:56. We had all signals on all the charts we look at. We had HRFP on 55, 34 and 21 with E on the 55, 34, 21 and the 10,8,5 and 3. We love it when we see signals like that because we know we are in for a great trade.

We remained in the trade until 2:11.

We bought 5 (each) Feb 420Calls @ $10.70 and sold them for $16.45.

Whne those candles get stuck on the 55 BB you are almost always in for the ride of your life!

Thanks Darcy, great trade also, I haven't got the account up yet to trade NFLX. May I ask what did you use as your exit criteria. Around 12 when it went sideways might have made me jump out based on these short charts. Thanks

We watched the 55 chart. When the candle on the 55 didn't hit the center on the BB we began to believe the trade was slowing. We exited when we believed we wrung all we could out of the trade.

Go back and research candles as they hit the BB. It appears as though those that hit dead center of the BB can ride for a while. When they stop hitting dead center is when S/O and I look for a change in price....i.e. bid begins to slow or doesn't reach another high.

S/O and I watch not only the charts but after we place a trade we watch how the bid moves. The longer it takes for it to reach its next high point the more we know the trade is slowing down. It is a combination of the chart and the option. We do this because we usually buy the month we are in.



Edited 2 time(s). Last edit at 02/10/2014 09:57AM by Darcy2.

I made a quick trade on TWTR today @ 9:53. Had HRFP on 21, FP on 34, E on all charts, adx and moneyflow turned up, entered off the 10 after it closed above 200ma on that chart at 9:53. Bought Feb 55 call @ $2.55, sold out @ 10:43am @$3.10. I saw AMZN setting up for a Put and it looks like that would have been a nice trade, but was against the market at the time.

You are geting it! I am so happy for you!


Traded AMZN yesterday because the signals were there. Bought out of the money 6 FEB 355 Puts @ 949 for 5.35 sold @ 11:02 for 11.60. Then bought LNKD @ 11:12... 5 FEB Puts for 6.05 and sold @ 2:17 for 9.90.

Thank you Darcy for your contributions and explainations. I traded SNDK today, was kinda leary as was against the market but all signals were there. Entered at 10:18am Feb 73 Call @ $1.54 and exited @ 10:31 @$2.05. Small gains but at least its a brick on the pile. Great trades on AMZN, & LNKD!!

TCB... We (S/O and I) are so happy for you! Great work and there is nothing wrong with a brick at a time. I have seen many days while learning and learning I was happy with any sort of profit.

Today S/O and I traded NFLX. In at 10:17 bought 7 Out of the money Feb 435 Calls for 7.50 sold @ 10:46 for 11.45. With the House of Cards coming out soon...the weather and CMCSA deal we just believed NFLX would be one to watch...so we watched bought and are still looking to see if there will be anythng else. Nothing else to do with 8 inches of snow and still pouring out in buckets!

Congrats! Darcy & S/O, I saw NFLX setting up but as I yet don't have the basket to trade it, I just watched it, and the only thing that I didn't like about it was the ADX wasn't showing a good sign on the 10. I also traded FB, saw it moving and all signals were there, entered at 10:30 Feb 65 Call @$1.73 and sold out @ 12:05 @$2.25.

Also TSLA seems to be setting up but the options are way to expensive for me.
We also have about 4-5 inches of snow and more on the way.



Edited 2 time(s). Last edit at 02/13/2014 12:24PM by TCB.

This has to be the most educational site/forum out there.... specially because of the live samples you guys provide...

I'm a GW 1-5, advanced and RTP... but I still suck at this... I will learn to do this whatever it takes... but you guys are just the best help I have seen ever.

Thanks sooooo much for sharing.

Darcy2 Wrote:
-------------------------------------------------------
>
> Today S/O and I traded NFLX. In at 10:17 bought 7
> Out of the money Feb 435 Calls for 7.50 sold @
> 10:46 for 11.45. With the House of Cards coming
> out soon...the weather and CMCSA deal we just
> believed NFLX would be one to watch...so we
> watched bought and are still looking to see if
> there will be anythng else. Nothing else to do
> with 8 inches of snow and still pouring out in
> buckets!

Darcy,

I'm trying to understand your momentum trade. NFLX opened down this morning. In your posts, you say that you look for the stock that has moved considerably at the open. How are you determining momentum upward when the stock gapped down at the open?

Thanks for sharing your thoughts.

funkho
How are you determining momentum upward when the stock gapped down at the open?

There are several factors needed to determine the real direction of a stock on the open IMHO.

1) Look at the candle open for NFLX on the 55,34,21,10,8,5, and 3. Clearly a strong up happening thus a strong momentum up.

2) Look at the money flow on the 9:40 candle on the 10 chart a strong momentum up.

3) Look at the NASDAQ charts (candles on the open) on the 55,34,21,10,8,5, and 3. Clearly going up NFLX is a NASDAQ stock.

There was little doubt which way NFLX was going. Big long candles (either color) get my attention.

At 10:17 when S/O and I entered the trade NFLX was up from the open...it was $432.85 @ our entry and on the open it was $425.48.

Also I have in my Quote sheet "net since open". I can see a change in any stocks net by looking at the net since open. A net since open tells me the true direction of the stock.

For example NFLX shows a net today of $7.62 but the net since the open is $10.86. Here's other examples of the benefit of the net since the open...BIIB shows a net of $5.58 but the net since the open is $11.88, NASDAQ shows a net of $39.38 but the net since the open is $69.09. These had momentum behind the move.

In my quote sheet is symbol, last, net and net since open. By watching my quote sheet among other things I can see what the market is really telling me...strong down, down, strong up or just up. From this I can see a momentum without having a momentum study on my charts.

Hope that helps.

Thanks for all you do, Darcy!

GW student here Two questions if you don't mind;

1. When you are entering and exiting trades, I love how you put the exact times. If schedule is not an issue, what's the best way you have found to determine the best entry and exit times. I've noticed some of your entries are before 10am, some after, and some exits are quick and some exits are not till the afternoon, etc.

2. Do you only enter trades when your ADX line and Money Flow line are both moving/pointing in the same direction?



Again, thanks & God bless you and your S/O. Y'all are giving lots of hope for those of us still struggling, but have signed the "No Quit Clause"!!

Dynamike:
> 1. .... what's the best way you have found to determine the best entry and exit times. I've noticed some of your entries are before 10am, some after, and some exits are quick and some exits are not till the afternoon, etc.
>
> 2. Do you only enter trades when your ADX line and Money Flow line are both moving/pointing in the same direction?
>

S/O and I enter a trade when we have the following:
FP or HRFP on at least the 34 and 21...best if it is on the 55,34, and 21
AND
ADX on the 34 and 21 best if it is on the 55,34 and 21 and turning up and above 25. ABOVE 25!!!
AND
E on the 34,21,10,8,5,and 3 (stronger if E is also on the 55). S/O also has a 1 chart where he draws a ray line under the last candle. He does this as we are looking at our basket of stocks that are moving so when he returns to that particular stock he can see right away if that stock is moving.
AND
Money flow (if a call) needs to be going up (not at the peak) and if a put not below the range set by the study which is 70/30...or 80/20. If the money flow is in those ranges (70 or 30 or 80 or 20) you will most likely have a pull back first before the stock will continue. A pull back can eat up a good amount of your profit.

Money flow and ADX will not always go in the same direction. ADX gives you the strength of the trend. That trend can be up or down. If the ADX is flat the trend is flat. If ADX is going down the strength of the trend is slowing. The ADX must be above 25 for there to be any trend at all. Below 25 means a very weak trend. Since trading options you want a STRONG ADX. If you aren't having a strong trend your option will not move much at all if at all.

At the same time you want money flow going in the direction of the trade up for a call down for a put.

TO EXIT... since S/O and I can watch the market most of the day we watch the option as well as the charts. When we begin to see a change in our option we start re-examing our charts. The change could be nothing more than a slight change or it could be a signal that the trend has ended. We look at the ADX... is it still strong? What about the candles? Are they showing a change...where are the heavy moving averages (50 and 200) and how is this stock compared against the BB? Are the candles pulling away from the BB on the 55? 34? 21? How has the stock behaved in the last 10 minutes, 20 minutes?

If we are not certain about how the trade is turning we take our money and leave the trade. You are NEVER EVER wrong with taking a profit. I have seen "the day" ..even now...when I will pick up a quarter off the sidewalk...because it is THERE!



Edited 2 time(s). Last edit at 02/14/2014 12:39PM by Darcy2.