Darcys Method

I have just gotten back to looking at this system and would hope to get some insight as to what people know after having used this method. Would love to hear some of your trades and be able to go back in the history to analyze them. If it is not the same exact system but something similar, Would love to hear that too as I am just here to learn and expand my trading knowledge. Hope everyone is trading well!

Kris



Edited 1 time(s). Last edit at 04/30/2019 11:06AM by AcquireCurrency.

There is nothing special about S/O’s E signal. It is like GW’s only the moving averages are smaller and S/O added a money flow. Crossing moving averages will move a stock. That applies to using a 5 and 10 cross-over or a 20 crossing a 50 moving average. The difference is the size of the chart. Smaller charts respond to smaller moving averages while larger charts respond to larger moving averages. S/O and I use GW’s charts which are based on Fibonacci numbers. I could tell you all day long how my charts are set up what moving averages I use and all there is to know about how S/O and I trade. The thing is follow the moving averages on whatever size chart you may chose to use. The more space you have between a moving average means you may be heading for a pull back the less space means you may be able to ride the trade. As for me I get out happy in Seattle because Hawaii has had volcano eruptions.

This current market is tricky mainly because in the past several years there was no interest rates. We were held at zero which helped stocks fly. Now the Fed has raised rates and market (makers) are a bit uneasy. This is why listening to the news is VERY important. April 16th proved extremely profitable for S/O and I. Can you guess what option we played on the news? Yes QCOM. We jumped on this call trade without even looking at charts. Sold it this morning at the open and jumped into an AAPL call at 9:34, which we got out of at 10:00 this morning and jumped into the Q’s on a put. Yes we are out of it now. If you are looking for signals in these trades you won’t find them. This comes from listening and following behind market traders, watching the candles motion and how the Bollinger bands react with the candles.

As for me I have found using the 20 moving average as a support or resistance before even considering an option is helpful. The further the candles are from the 20 moving average the less likely the trade will continue up or down (on the small charts). The 20 moving average is a magnet for candles. So if you trade smaller charts use that as ANOTHER signal whether to get in or wait. Notice the Q’s on an 8 chart today. Down it went to the 20 moving average. Now look at AAPL in the same time frame. Down it went to the 20 moving average. Now at 10:25 both are pulling up. CONSIDER THAT A TEST! Will AAPL go higher? AAPL and the Q’s follow each other closely...BUT NOT ALWAYS!

There is no secret bullet in trading. Moving averages are lagging indicators. The higher the moving average the more lag you will have. This is why S/O and I use smaller moving averages but add looking at a 21-55 chart to see if the trade we want to enter has room to move. This doesn't mean the moving averages have crossed yet. What we look for is if the trade has room to move. Remember the 1 chart is showing up on a 3 chart and then on the 5 chart then the 8 then the 13. If these are moving with room to move perhaps the moving averages haven't moved yet on a 21 or 34 but they will if there is room to move on them. (This may answer your question you sent in PM. Over sold or over bought in the Stoch RSI and larger comb-lines in the MACD in those charts makes us move on to something else BUT NOT ALWAYS. We might be in that trade 10 to 20 minutes. BTW we don’t this because we trade small charts we do this because of the option we buy. We buy in the month we are in and during expiration week on Thursday we are in the next month. By this time frame unless there is BIG news the options begin to really change fast against any trade placed.

Things have changed because of algorithms automatically kicking in and this is why placing marks on your charts where there are gaps or HUGE wicks on your candles becomes helpful. Understand the algorithms respond to the NASDAQ and S&P. WHAT?? If the NASDAQ and S&P goes below the 200 moving average it triggers algorithms to sell. If they go above the 200 day moving average it triggers algorithms to buy. When I say huge wicks I am talking about wicks at least the same size of you candle. Look for a pull back to these lines usually within the 2nd week on larger charts and can be the same day on smaller charts. (look at Q's 4/17 on 8 chart and see the pull back) If you get more than one gap on a small chart mark those also but leave the other gap lines you drew. After the gap has been filled in about the 2nd or 3rd time on these smaller charts you can remove the line IF you want to. I generally don't for at least a month or more.These lines can become resistance or support. Gaps on larger charts of course can mean more than those appearing on smaller charts. Remember S/O and I seldom go beyond a 55 chart. Breakaway gaps on a small chart for us is a big $ maker. You can look at the Q’s April 17th on an 8 chart and see a breakaway gap IF you marked it.

You are in a great location if you use the information provided by those who have done a lot of hard work here on the EARNINGS. As GW had said during our class there comes a time when you will be done with earnings and until you reach that point I strongly urge you to sign up for the information these wonderful people have provided. A stock moves at this earnings and using the tools above along with knowing how your stock reacts during this time will make you $’s.

I mark my charts as to when they will go into earnings and how they reacted using their history. I use dash green lines 5 days before they report and put in notes on my charts (8 and 55) how the stock reacted. I put in solid green lines on the day they are to report (before or after the market). This makes me watch the news on this stock and reminds me an event is coming up. Beating earnings isn’t all that much but raising growth or lowering it does affect S/O’s and my way of trading. I also mark with solid light blue lines when my stocks give dividends 14 days before they give them. Most stocks will fall the day of or after they pay out dividends.

Remember when trading the hardest thing to overcome is fear of loss. Face it you will lose no matter what! You can have everything looking great and one analysist say BOO and bam you are down money. If you are in a trade and it isn’t moving in your direction within 30 minutes re-examine your chart. Search Yahooo news for information on your selection. Something isn’t right with your choice. Hope this helps...and Yes I still love BA and LULU...up and down.

Finally let me say this...if you can't watch the news all day, if you can't watch your charts every 10 minutes,.if you can't monitor your trade at least every 20 minutes... DO NOT trade the E system on SMALL CHARTS. It will not work for you. The E will work on larger charts. BTW NEVER EVER TRADE on MARGIN..EVER! And don't forget there really isn't an ALWAYS in the market. God forbid there can always be another 9-11!



Edited 7 time(s). Last edit at 04/17/2019 11:18AM by Darcy3.

Than goodness for an edit button!! THANK see what I mean. My computer keys are sticking. ERRRRR



Edited 1 time(s). Last edit at 04/17/2019 11:18AM by Darcy3.

BTW if you came here when I told you about my AAPL trade and if you bought a call...you'd be making money. I shared I got out of the PUT trade and asked if AAPL would be going up. The 20 moving average was support on the 8 chart.

Again Darcy thank you so very much!

You have given me a " look at the forest not the tree" puzzle piece. The 20 moving average advice just helped me see the forest, so I can make better "when to get in" decisions. I am purely technical so I watch the "trees" and with your advice now I can see more of the move before it happens.

I look forward to seeing the other puzzle pieces you have that you just "don't even think about anymore" you just do. Keep teaching! We are listening!

Very grateful to you and all the others that have taught us what you have learned. We would not be where we are without all of you!

You are welcome... So if you have a full view of your charts look at your charts today on May 3, 2019. What I mean is if you can see more than one chart at a time. Today I was SO tempted to jump on AAPL on a call until I looked at my 34 chart. At 10:00 my indicators said this was a trade except for my 34 chart. The candle had not broken the 20 moving average going up. I with-held my money and move on. That 20 moving average has saved me more money than I can begin to say.

Watch those candle sizes. Tiny bodies generally are not moving well enough for trades.

I am so sorry, I am confused. On my play back of May 3 for AAPL the candles were above the 20 moving average. On the 34 chart. I don't play AAPL so I am not familiar with it. All my indicators except my 2 minute were saying go on AAPL.

But from learning that little information from you I could play AMZN.

On AMZN which I play ,around 9:35 GWs indicators were saying down. The candles were below the 20 moving average except on the 21 chart and the 34 chart, the 20 moving average was going up on those charts and the candles were above the 20 moving average. So I would not buy puts because you taught me to look at the 20 moving average. Then I watched the other charts candles move above the 20 moving average and waited for the rest of GWs indicators and got in. Because that is what you just taught. Which worked perfectly! It was a quick play because 2 of the indicators were not excited about up so I knew it would be a short play. Before you taught the 20 moving average I would have gotten in going down and that would not have worked.

So yes, I love your 20 moving average lesson!

May 3, 2019 my 34 chart from 9:30 to 10:38 candles fought against going above 20 moving average. On 21 chart candles wrapped around the 20 moving average. This is a sideways move. Today I traded ROKU. Got in @ 10:07.44 paid 4.05. Thinking of selling but looks like I could get a few more $'s. Watching close. Gotta head out so I sold for 6.35.



Edited 2 time(s). Last edit at 08/01/2019 11:56AM by Darcy3.

Thanks Darcy for sharing so much of your valuable trading experience in this forum. Wonder if you have a list of your favorite stock to trade? If not, how do you pickup ROKU on May 9?

I can't really say I have a favorite. S/O does and it is the Q's. I watch mostly FB, TWTR, LULU, and ROKU. I was listening to CNBC and heard Cramer talk about this stock and how it is on all TV's now. Knowing that in America most people now use TV as their entertainment I just knew this was a good stock and would move well. I use my 8 chart when looking for entries. So about May 9...On the open the candle had a push up from the 200 moving average. I then look at the 13, 21, 34 and 55 to see if I have room for a move. On the 21 there was a push off the 50 moving average. On the 34 strong support and a push off the 20 and 50. The same on the 55 as the 34. I also had "E" AND earnings. There was no doubt to trade this stock. I've been asked how do I know when to get out. I get out when I am happy or when I want to go do something else. Sometimes I have to leave the house and I know that I can make a little more. I look at where I can sell. I know that if the stock will rise more $''s I can make about 40 to 50 cents per dollar and I'll set a GTC and leave. If I am unsure I just sell and go. I est. the rise by using the Bollinger band direction. If I can't tell because the band is jumping all over the place I just sell. Hope this helps. Sorry so long before responding.

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Thanks Darcy for your kind sharing.

I hope you saw why I didn't trade AAPL on May 3, 2019. When those candles fight a moving average especially the 20 you need to look for a different trade. That option is not going to move. On the 34 chart the candle although white was stuck on the 20 moving average. That stock moved that day from the open high to the closing high...211.46 open high to 211.93. A little less that a .50 move which would have been eaten up and not moved from 9:30 to 12:20. A trader may have broken even if he was blessed!