"E" success

What would be interesting to share are the times/prices at which our "E" signals fire (assuming we're using the same "E" charts, Trend, Money Flow & ADX values posted in this thread), as some of us are on StrategyDesk, TOS, and possibly AlchemCharts. This would provide some interesting context in terms of what we see & when. I use StrategyDesk, and had the following "E" trade signals fire today:

AAPL fired on 4-Aug-15, 09:33:09 @ $116.67
NFLX fired on 4-Aug-15, 10:39:58 @ $118.23
QCOM fired on 4-Aug-15, 12:09:26 @ $63.85
TSLA fired on 4-Aug-15, 15:49:42 @ $266.39

Played AAPL and NFLX (twice) today & entered TSLA just before the close

NETFLIX
08/04/2015 O STC NFLX AugWk1 116 Call 10 $2.92 $15.00 $2,904.70
08/04/2015 O BTO NFLX AugWk1 116 Call 10 $2.52 $15.00 ($2,535.24) 369.46
08/04/2015 O STC NFLX AugWk1 118 Call 10 $2.64 $15.00 $2,624.71
08/04/2015 O BTO NFLX AugWk1 118 Call 10 $2.29 $15.00 ($2,305.24) 319.47
Total Realized Gain/Loss for NFLX $688.93

APPLE
08/04/2015 O STC AAPL AugWk1 117 Call 10 $3.85 $15.00 $3,834.71
08/04/2015 O BTO AAPL AugWk1 117 Call 10 $2.06 $15.00 ($2,044.24) 1,790.47
Total Realized Gain/Loss for AAPL $1,790.47

First day I was able to replicate the setup and actually watch the market. Got triggers on BIDU and GOOG.

Posting SS from each...

First I did BIDU:

[www.evernote.com]

This week's 175C entered at .75 and exited at 1.00

While BIDU was going, There was a signal on GOOG.

[www.evernote.com]

This week's 645 in at 4.50 and exited at 6.00

And while I was typing this, I got another on WMT which I shot, but I'm not going to track...

[www.evernote.com]

Timestamps are on screenshots.

Thanks again to Darcy, mtut, robert for the collaboration... Looks pretty solid.

No screen shots but this morning using TOS central time US:

Bull entry on PCLN at 8:33 price at 1399
Bull entry on NFLX at 8:35 price at 128.80

These were both gap ups outside of the BB's. I think MTUT mentioned to wait for the price to come back into the band, then let the signal fire again (on all 6 cylinders) and if you look back a the gaps this is a good idea.

Not a fan of entering on gaps in the morning either way due to a lot of emotion trading which can turn on you quick.

No trades yet for me today. Too busy with the 'real' job...Sheldon sad...

Just curious what stocks you all look at. I have some on the list from previous threads- and wanted to ping the group and ask what you were watching.

I have:

AAPL
BIDU
BWLD (just added, but considering taking off b/c spreads look too big)
FB
LNKD
NFLX
TSLA

I highly recommend paying close attention to the spreads. If you think it looks like too much of a spread, just stay away from it.

[www.evernote.com]

I grabbed BIDU calls. Bought at 1.49 and sold at 1.88...

I bought it as soon as the trigger showed up, and I sold it as soon as it hit back to the high of the day.


Also, I got burned in CMG this morning. I'm taking it off my list because of the option spread price... This morning it was 2.20/3.20... Nuts... I wanted to also point out that I don't think you should buy anything in the first 10 minutes of the day. I got a signal on CMG, which promptly went away as soon as I bought it. I think CMG just hadn't traded or something. When I bought the option, all my charts went grey... BIDU made it all up for me, but I think it's good policy not to buy in the first 10 minutes.

Yeah.. the spreads can be crazy at the opening. I've seen $LNKD ATM with a $2 spread at the opening and then about 5 mins later back to normal.

Trade safe

funkho, "E" traders, et al.

I am going to comment on CMG and large spreads in the interest of sharing/collaboration. There was a big discussion regarding large spreads back when Darcy was active. I mentioned it only because Darcy is the one that introduced the "E". The discussion was prompted by a trade she made on a stock with a relatively large spread (maybe a buck and possibly BIIB ). I do not recall the specifics but Darcy did not let the spread bother her. She was still making up the spread and getting dollars on her trades. The reason is that Darcy's bread and butter trades incorporated a FP / HRFP on the 55 or 34, room to go on the short charts and big charts not being up against major support or resistance (i.e,. room to go on the big chart as well). She posted countless times about these types of setups. Yes, she also posted about pure "E" trades without GW FP/HRFP but I am sure in the back of her mind she also knew there was room to go on the chart. My point is that CMG had no where to go today but down from the open. I assume if anyone got burned on a CMG "E" signal then you were trading Calls. You guys are knocking it out of the park hitting trades for 0.50 and moving on. The one observation I have made and would offer is a bit more time studying how the charts work together so that you can see / anticipate the next move - a step beyond a pure technical signal. Again, not posting to offend anyone. If you guys continue doing what you are doing and keeping your losses minimal you should do just fine. The ability to read the chart is the difference between Darcy's $1.50 to $2.00 or more per trade and what I am seeing in this thread. Letting the first 10 to 15 minutes settle down is not a bad idea either. Wish you all the best!

NCT



Edited 1 time(s). Last edit at 08/06/2015 11:00AM by NCTrader.

NMR, I have the following:
AAPL
AMZN
BIDU
BIIB
LNKD
NFLX

Dr. Phil

NCTrader Wrote:
-------------------------------------------------------
> funkho, "E" traders, et al.
>
> I am going to comment on CMG and large spreads in
> the interest of sharing/collaboration. There was
> a big discussion regarding large spreads back when
> Darcy was active. I mentioned it only because

...





This is a very good point. I actually had a goof on my part after setting the E charts up. I had a chart showing that showed me room to move higher for CMG, but it turns out that chart was for another stock entirely. Heh.

But I do use larger charts to show me where I should exit after the E trigger. That's why I bailed on BIDU once it hit the high of the day.

I remember Darcy saying that she had 2 years without a loss. That would be because of the homework she did outside of the E trigger. And that's what NCTrader is referring to as well, I believe.

I have added a qualifier to e-signal trades, which is at least a FP on the hourly chart...

As such, I almost went into BIDU this morning, but decided against it due to the price being outside the BB...

It continues to show signal, but I am going to let it go... I did take a SS though.

[www.evernote.com]

Just wanted to post what I am seeing.

I had signals on BIDU and AAPL this AM- the E signal- all red on the watchlist and all red on the 6 charts

made 50 cents on both and sold out as I had a GTC order in

both are still running down



Edited 1 time(s). Last edit at 08/11/2015 03:35PM by NMR.

funkho Wrote:
-------------------------------------------------------
> I have added a qualifier to e-signal trades, which
> is at least a FP on the hourly chart...
>
> As such, I almost went into BIDU this morning, but
> decided against it due to the price being outside
> the BB...
>
> It continues to show signal, but I am going to let
> it go... I did take a SS though.
>
> [www.evernote.com]
> Tg0yRv0txeBk
>
> Just wanted to post what I am seeing.

I think adding a FP requirement on the hourly chart is a good move. Darcy requires a 21-min and 34 min FP on her plays, and prefers to have a 55-min FP too.

I think mtut would have played BIDU this morning. I believe you wait for the 3min and 5min charts to get back inside the bollinger band and turn back in the direction of the play...and then buy the option.

Here are the stocks I track for "E"; AAPL AMZN BIDU LNKD NFLX QCOM QQQ SPY and TSLA. Played PUTS on BIDU and NFLX today with easy 15% gains on both. Would have played PUTS on AAPL at precisely 12:43pm, but was on a confernence call and couldn't . Happy Trading, guys!

Would anyone mind sharing their workspace for this. I have everything set up in tradestation and have loved it, but this is so cool looking I would love to try it in think or swim. I don't know much about code though. Thanks.

This morning....

BOT +2 TSLA 100 AUG 15 242.5 CALL @6.00 BATSMARK=243.22 IMPL VOL=41.44% 9:53
SOLD -2 TSLA 100 AUG 15 242.5 CALL @7.10 BATSMARK=244.93 IMPL VOL=41.81% 10:51

I'm not sure how ya'll post it. Had hoped it would go more but I took profits as I lost yesterday. Of course they put more to the option as soon as I sold....Had an E on everything....

I don't know how you can trade this E-signal... the charts turn green all at once for only a few minutes or seconds..?

Tampman - you can't. Be very careful what you read on an internet board. It doesn't work because losses are exponential. Those here today won't be here long.

Yes, the charts turn green or red for a few minutes to signal an entry. But this is only an entry signal. In other words. If you have a position you researched the night before, but you weren't sure when you wanted to actually buy the option, you might use this to tell you when the exact time for entry would be.

It's as simple as that, a very dangerous entry signal. Dangerous because the idea in this thread is to buy this week's option, which can be chopped in half within minutes. Even just because of the spread.

At the end of the day though, this is just an entry signal. You'll need to know how to trade in order to use it. If your trading plan doesn't allow for a 50% loss, then you really don't want to be in this week's option. You could still use this as an intraday signal for much longer timeframe options. Maybe 3 months would be a lot safer. You just have to adjust your expected return. Maybe you just want to take a 5% gain, and bail out if you have a 3% loss. Whatever you come up with is your plan.

Sometimes, I wonder if 'wakeup' is a paid to troll.. Heh.

I don't care what people say as I think it works. I have based many trades off of it. Now I don't always do the weekly option, but several last week worked. You do need to be able to apply all the information to what you know however. I have had the most success with this and I like short chart trades better just because I'm not patient. I still screw up and do poor trades though but they are on me and my not waiting for a great setup.

It works.

It doesn't just hold a red or green signal forever! It's more like a traffic light, it turns green, everyone goes then it turns.

Agree with NMR, this works. That said, I never enter the trade when the "E" signal fires. I use the 1 minute chart and principles taught in RTP & DE classes to pin point my entry. Jumping the trade when "E" fires has the potential to be either very profitable or a huge loss if you're not careful. Using the 1 minute chart takes these extremes out of the picture and greatly increases the odds of a profitable trade. Those dissing this approach simply haven't done the work.



Edited 1 time(s). Last edit at 08/16/2015 06:29PM by RaleighTrader.

Prime example of what I'm referring to above...

TSLA - all "E" signals fired (on my instance of SD) @ 9:33AM today. Watched the 1 min chart & entered the trade at 10:45AM (CALLS) using a combination of what I was taught in Classes 1-5, RTP, and DE. If you've taken these classes & practiced the techniques, you'll know what I'm talking about.

When I started practicing the "E" signal trade, I was jumping in right when the signals fired. Though many of those trades worked, I found that some didn't & the practice losses were significant in some cases. The key is knowing the right entry point with what you've learned.

TESLA MOTORS
08/17/2015 O STC TSLA AugWk4 252.5 Call 10 $7.80 $15.00 $7,784.61
08/17/2015 O BTO TSLA AugWk4 252.5 Call 10 $6.75 $15.00 ($6,765.24) 1,019.37
Total Realized Gain/Loss for TSLA $1,019.37

RTP and DE.
HOW r u using with the "E"?

I think a better question is why someone would not use "E" in context of RTP and DE if they were going to use "E" at all? It's best to use all you know. The "E", as it was originally taught, was in context of the type of information taught in RTP. Darcy simply learned how to read the charts. She traded small charts but she always had the big charts either going her way or not totally disagreeing with her decision. She always said she wanted room to go on the big chart (i.e., could not be up against hard resistance on big charts and expect to do a short chart "E" trade to the upside). Unfortunately she has deleted a lot of her original posts so it's hard to back and research. If you want a good example of a "trade" go back and look at bugabiga's TSLA trade on 8/13 about 5 or 6 posts up. Not at what she posted per se but the actual set up and result. You have a nice rise on the W chart, pulled back and dropped down to rising 21MA with 50MA just below, D & 233 around lower BBs and 200MA areas, indicators are all low signaling oversold with next good move probably to the upside, and the DE confirming next good, here's the key word "good", move is likely up. This was screaming to be a trade to the upside at some point in the near future. If you used bugabiga's "E" entry on 8/13 you are in early in the morning around $243. If you use RTP / DE you wait until early afternoon, stock pulled back that morning on smaller charts, and you are in around $240. Either way this was screaming to be a trade and is up $17 to $20 in 4 trading days. This would have been a good opportunity for a short chart trader to learn to hold overnight. It was screaming "big chart trade". For the record some of the original "E' chart posters were using it as a confirmation signal. Just one more thing going their way but the "foundation of a trade" was present prior to any signal firing.

Noticed we haven't had much in the way of postings on the E success topic, but just wanted to share with you a couple of example trades I did this AM that all of you can do if you believe in, and use, the "E" chart trade set up MTUT and others have talked about & contributed ALOT to in this thread.

First of all, I had E signals fire (to the upside) for the following stocks this morning, along w/ the time they fired:

TSLA 9:31am
QQQ 9:32am
QCOM 9:32am
SPY 9:34am
LNKD 9:37am
AMZN 9:40am
AAPL 9:42am

Those of you using the E chart trade set up on TOS likely saw the same thing on these stocks (if you follow these particular stocks). As I've mentioned before, I'm still using SD. With all of these stocks firing this AM, it's a lot to keep up with, I know. So, I moved each of them into a seperate quote sheet, and watched their 1 min charts for a backup. You HAVE to be patient, and let the 1 min chart backup (in this case, go down) BEFORE entering the trade. If it doesn't backup, then you don't get in the trade, period. Another "elevator" will be along shortly as many of you GW students have heard before.

I chose LNKD and AAPL for no particular reason other than the spreads were tight and their 1 mins charts began backing up nicely following the E signals firing.

I entered LNKD at 9:50am after a nice 1 min backup, approaching it's 200ma & BBB then turning up. Stock price was $179.32. My GTC hit at 10:15am (up ~15%), with the stock price having only moved up to $180.87. Notice the weekly chart was slighly down, but since this is a short chart trade, I pay more attention to the Daily and 233, both of which were slightly up (supporting my E trade direction).

LINKEDIN
09/03/2015 O STC LNKD SepWk1 180 Call 10 $2.35 $15.00 $2,334.71
09/03/2015 O BTO LNKD SepWk1 180 Call 10 $2.04 $15.00 ($2,055.24) 279.47
Total Realized Gain/Loss for LNKD $279.47

I entered AAPL at 10:00am for the same reasons I entered LNKD (1 min backup, BBB/200ma support, yada, yada, yada). Stock price was $111.82. My GTC hit at 10:23am (again, up ~15%) & stock price up only $112.36, again, paying attention to the Daily and 233 indicator directions.

APPLE
09/03/2015 O STC AAPL SepWk1 111 Call 10 $1.94 $15.00 $1,924.72
09/03/2015 O BTO AAPL SepWk1 111 Call 10 $1.68 $15.00 ($1,695.24) 229.48
Total Realized Gain/Loss for AAPL $229.48

You will have noticed that following these trades, both LNKD and AAPL, fluctuated up and down on the 1min chart. That's to be expected, and why it's important to enter GTC soon after entry. You'll notice the stock price doesn't have to move much to get a good percentage gain. My recommendation to you is PRACTICE these trades, get comfortable with them, build your confidence, and don't get burned entering these trades right when the E signal fires (IMHO). And yes, its a total PITA (Pain In The Ass) watching a 1 min chart, I'll admit. But, if you only do 1 trade like this a day, in and out w/in an hour's time, you'll have the rest of the day to goof off. As always, if it begins to turn against you, by all means get out & save your capital. E signals fire all the time. It's having the patience to watch & wait before jumping in, and ensuring you have as much working in your favor as possible before hitting "Enter". Hope this helps you guys, coming from someone who's been at this since 2005 & is just NOW getting good at it. Never give up.

RaleighTrader: Thank you for posting- I was also watching the charts this AM and I didnt see any of my watch list stocks fire (I have most of the same that you have) did you have the 30 through the 3 all fire the same color? I may have a code problem... not sure but I'll investigate.

This is great information and I appreciate you sharing this- I especially like the 1 min chart for the pullback and then getting in. I've been getting in soon after they fired.

Thank you again.

NMR,

Thanks for the positive feedback. Using StrategyDesk, I rely on it's Alert Manager feature to signal when all my formula conditions are met, not on a visual of all E charts as some do w/ TOS. So, it could be that, for 1 minute, all conditions were met, then it immediately went away, I have no idea. If you're watching the color of 6 E charts, then you could theoretically turn away from your monitor and miss it. I don't know TOS that well, so I could be wrong about that. The Alert Manager seems to work well for me, but I'm sure there's an equivalent feature in TOS or AlchemCharts (or QCharts for that matter). As I can, I'll keep posting my E signal firing times so others can confirm on their systems. Remember, there are 4 elements to E charts as MTUT and others have pointed out: 1) E moving averages, 2) Money Flow, 3) Trend, and 4) Directional Movement strength. I also look at Daily/233 indicators to support my trade direction.

All the best,
RT

Thank you for the information. I was just thinking of seeing if I could create an audible alert in TOS. I don't have SD but could consider changing over if as I do agree, by looking away for a moment or walking away from my desk for a couple of minutes and I would completely miss the mark! I ended up not doing any E trades yesterday. On Wednesday I did a NFLX trade for 50cents up on the option and it worked in less than 30 minutes. I'll post the details when I have access to my journal.

Have a great day and thank you for posting the information you posted- it is very helpful.

Can anyone help me and provide some input on trades today. I had LNKD AND NFLX Fire today with six E signals, got in, and exited a short while later with a loss. If I had stayed on NFLX I would have ended up doing OK.

It seems to me that when a stock moves violently and/or gaps bid, it almost always forms an E. these trades don't work. Do you see and think the same when this happens?

Simple E trade today:

CHIPOTLE MEXICAN GRILL
09/28/2015 O STC CMG OctWk1 725 Put 10 $10.40 $15.00 $10,384.56
09/28/2015 O BTO CMG OctWk1 725 Put 10 $8.90 $15.00 ($8,915.24) 1,469.32
Total Realized Gain/Loss for CMG $1,469.32