5 min E trading

Been playing around with the E charts and have been practice trading Darcy's stocks off the 5 min chart when an E is first formed with ADX > 25 and . I have limited my trades to just the open and around 2 pm looking to make around .50 or more. Just in the trade for a few minutes playing the momentum. Today I traded TSLA around 2:15 to the down side and made .60 and then about 2:30 played it up for another .50 Due to having to work, I was late getting in at 2:30 when the E formed much earlier. I also use the sma 50 and 200 on this chart. Played AMZN around 2:30 as it bounced off the sma200 going up

@mtut

Nice trades. Are you looking at ADX on the 5 min chart or another chart? Other signals too or just E and ADX?

5 min chart only. When E forms and ADX>25 on the 5. Quick 'sniper' trade

Hum...maybe another way of trading GW's 5 minute trade????

PRACTICED TRADE TSLA AND NFLX THIS A.M.

ENTERED TSLA AT 9:35 AND EXITED BY 9:40 BOUGHT 10 FEBWK4 257.5 CALLS FOR 5.00 SOLD FOR 5.60 TOTAL INVESTMENT $5000.00 PROFIT $600.00

ENTERED NFLX AT 10:25 AFTER IT CLOSED ABOVE THE SMA200. BOUGHT 10 FEBWK4 450 CALLS FOR 5.65 SOLD BY 10:35 FOR 6.15 TOTAL INVESTMENT $5650.00 PROFIT $500.00

NO TRADE THIS AFTERNOON....HAD TO WORK

TSLA




NFLX

Good trades, MTUT. I also traded TSLA around the same time as you yesterday, but it didn't go so well for me. I purchased calls about 5 minutes after you did while the candle your orange arrow is pointing to was still a long green candle. As you can see, within just a few minutes the stock started to pull back. I wanted to wait a candle or two to see if the 5 min average would hold allowing the stock to continue the up-move. It didn't. When it broke support, it started to fall very quickly. I entered a limit sell order, but by the time I clicked submit, the price had already dropped lower. I cancelled that order and placed another sell order. By the time I was able to get out, I was looking at a significant loss.

I waited a few minutes while the doji on the 10 min average formed. When I saw the next candle once again start painting red, I bought puts instead. The stock dropped fast and I was able to make enough to cover the loss on the previous trade.

Not my best trading session over the past month, but I am very happy to have ended with a push.



Edited 2 time(s). Last edit at 02/28/2014 09:31AM by robert.

Short and sweet...Played AMZN calls at the open today and took .65 Could have made dollars but that is not my plan

Looking at your AMZN trade. the E is just starting to cross at 9:30, but the ADX was around 12.4. Are my indicators off or is the over 25 ADX optional?

My ADX settings are 5 and 13, At 9;30 the ADX line is 32.64 but I play the +di and -di lines being above 25 and the +di at 9:30 is 49.29 and rising





Edited 1 time(s). Last edit at 03/01/2014 11:14AM by mtut.

mtut,

What platform are you using? I agree that the QCharts 13 period ADX line for AMZN on 2/28 @9:30 is 32.64, but the "standard" ADX line as calculated by thinkorswim is 13.42 and TradeStation has it at 20.45. I think this points out how differently that platforms calculate ADX. I need to do a lot more study on it, but I did get thinkorswim to come close to the QCharts ADX value by customizing thinkorswim's ADX to specifically use what is called Wilders smoothing. Since GW told my classes not to use the ADX line, if I use it, for now I use the standard studies that come with software platforms. When I have a lot more time I plan to go back to Wilders' own text and see how closely the thinkorswim and TradeStation ADX code match his algorithm.

Robert, of this forum, provided the following TOS code that emulates the ADX settings of Q-Charts and of Strategy Desk. The photos are of SD 5 min chart. Replace each smiley faces with ) Also, this E chart and ADX combo is based on Darcy's recommendations , not GW
----------------------------------------------------------------------------------------------------------------------------------------
declare lower;

input DIlength = 5;
input ADXlength = 13;

def hiDiff = high - high[1];
def loDiff = low[1] - low;

def plusDM = if hiDiff > loDiff and hiDiff > 0 then hiDiff else 0;
def minusDM = if loDiff > hiDiff and loDiff > 0 then loDiff else 0;

def ATR = WildersAverage(TrueRange(high, close, low), DIlength);
plot "DI+" = 100 * WildersAverage(plusDM, DIlength) / ATR;
plot "DI-" = 100 * WildersAverage(minusDM, DIlength) / ATR;

def DX = if ("DI+" + "DI-" > 0) then 100 * AbsValue("DI+" - "DI-" / ("DI+" + "DI-" else 0;
plot ADX = WildersAverage(DX, ADXlength);


"DI+".SetLineWeight(2);
"DI+".SetDefaultColor(Color.GREEN);

"DI-".SetLineWeight(2);
"DI-".SetDefaultColor(Color.RED);

ADX.SetLineWeight(2);
ADX.SetDefaultColor(Color.YELLOW);

plot line = 25;
LINE.SetLineWeight(2);
LINE.SetDefaultColor(Color.WHITE);



Edited 2 time(s). Last edit at 03/01/2014 05:30PM by mtut.

mtut,

That is the exact same code I have for thinkorswim so I will have to go back and do some more checking. Thanks for posting the source code you are using.

I have one question. What is the Plot line 25 used for?

I have one question. What is the Plot line 25 used for?

It just draws a horizontal line at the 25 level so it is easy to see when ADX is >25.

mtut Wrote:
-------------------------------------------------------
> My ADX settings are 5 and 13, At 9;30 the ADX line
> is 32.64 but I play the +di and -di lines being
> above 25 and the +di at 9:30 is 49.29 and rising


Does the +DI and -DI being above 25 apply to all the timeframes. I have been doing big chart trading and just wondering if that applies to the 55, 233 and Daily as well?

I use the ADX > 25 because that is what Darcy suggest in conjunction with her 'E' trades. I think that I have been testing her setup incorrectly in that she states that ADX should be above 25 and I have been testing for the +di and -di > 25.