LNKD

Today I traded LNKD. I bought off the TAD moving average charts I bought around 11:10 on the TAD 21 chart. On Gary’s chart it shows the candle below the 20 moving average too. I was in until 3PM. I bought 3- 180 May PUTS.

On the TAD moving average chart it was clear that this was a trade. Gary's 21 chart worried me some because of the 200 moving average. But I still felt because the market was falling that this trade would work.

LINKEDIN
04/18/2013 O STC LNKD May13 180 Put 3 $14.60 $14.95 $4,394.86
04/18/2013 O BTO LNKD May13 180 Put 3 $11.40 $14.95 ($3,435.05) $959.81
Total Realized Gain/Loss for LNKD $959.81

I see on the TAD 21 indicating the trade and on Gary's 55 but on his 21 there was really nothing indicating a new trade but showing continuation of the down move and I agree with you the 200 on the 55 and 21 would have concerned me. Congratulations on the good trade.

Maybe this is a repetitive question, but, can there be some elaboration around this TAD chart ? IF it is something that can be found in a particular chapter that would be good. How is it different that Gary's?

TAD- Technical Analysis for Dummies. I will have to get the pages, but there are MA parameters suggested in a section of the book. I have one of my workspaces set to those parameters.

I think the pages are 220-222. The chart is built on using 3 different MAs, a 5, 10, and 20 moving average.



Edited 1 time(s). Last edit at 04/22/2013 11:39AM by TCB.

TAD = Technical Analysis for Dummies. Pages 220-222.

The charts however are a 10 and 20 moving average chart. You use a 5, 10 and 20 moving average and in studies you use money flow.

What I and S/O use is a 55 (Gary chart) a 10 moving average chart, a 21 moving average chart, and a 21 (Gary chart)

When all of these agree to a trade we trade. S/O has found that the moving average chart will show a trade even when Gary's 55 chart is in the over sold position on the 55 chart.

The TAD book uses a Daily with those moving averages and money flow for buying stock. It works! But stock when the 5 and 10 cross the 20 going up and sell when the 5 crosses the 10 going down.


If anyone wants to learn more about options read Technical Analysis for Dummies OPTIONS. I didn't read all of it but most of it. Some of it I will never ever use.

Just to clarify,when you say a 10 and 20 moving avg chart, are you referring to a 10 minute and a 20 minute chart?

There is a 10 and 20 moving average on a 10 and 21 minute chart.

Clearer...on a 10 minute chart you will have a 5, 10 and 20 moving average and a money flow study.

On a 21 minute chart you will have a 5, 10 and 20 moving average and a money flow study.

On a Daily chart you will have a 5, 10 and 20 moving average and a money flow study.

Hope that helps.

Darcy may I ask what are your money flow settings ?

Money Flow setting is a normal setting offered by the folk through whom you have your charts.

Mine is 14. I changed my money flow line to black thickness 2.