MA
Posted by Darcy2
|
MA May 18, 2013 03:05PM |
I have been looking at shorter charts for an action chart during the summer zone. My 55 is my decision chart. I do look at the Daily to see is my decision chart is going to be strong or weak. I seldom hold over night. I just like sleeping peacefully. Someday I am sure I will change but for now I am happy with how my trading has been going.
BUT
The reason I am looking at a smaller E chart for action is; Friday I traded a CALL on MA off the 10 E chart. I got in actually incorrectly. I got in @ 10:21 when the price of MA was @ 579.76. The candle on the 10 chart did reach that point but then it began to pull back and the option began to fall although not a lot.
If you look at the 10 E chart @ 10:20 - 11:00 you can see that the 5 moving average pulled to the 10 moving average. That was a $2.00 move in the stock! I thought I was heading for a loss.
Had the 5 crossed the 10 I would have immediately left the trade. That's the rule!
But the stock began to turn back up @ 11:01 and then climbed from there.
So I am thinking I need to have an action chart to enter during the summer zone because of how the summer time zone acts. Had I used a 3 E chart I could have seen the pull back ending @ 9:45 and I would have bought in @ 9:48 - 9:51 and then moved to the 55 chart. My cost would have been about 574.00 and the down turn on the 10 E chart would have meant little to nothing. If I had used a 5 E chart for the action I would have gotten in somewhere around 10:15 which still would not have been the best entry.
Anyway I am thinking about placing an action chart just for the summer zone.
I did end up with a profit on this trade of $896.86. But the trade itself would have been best if purchased ealier.
Edited 1 time(s). Last edit at 05/18/2013 03:09PM by Darcy2.
The reason I am looking at a smaller E chart for action is; Friday I traded a CALL on MA off the 10 E chart. I got in actually incorrectly. I got in @ 10:21 when the price of MA was @ 579.76. The candle on the 10 chart did reach that point but then it began to pull back and the option began to fall although not a lot.
If you look at the 10 E chart @ 10:20 - 11:00 you can see that the 5 moving average pulled to the 10 moving average. That was a $2.00 move in the stock! I thought I was heading for a loss.
Had the 5 crossed the 10 I would have immediately left the trade. That's the rule!
But the stock began to turn back up @ 11:01 and then climbed from there.
So I am thinking I need to have an action chart to enter during the summer zone because of how the summer time zone acts. Had I used a 3 E chart I could have seen the pull back ending @ 9:45 and I would have bought in @ 9:48 - 9:51 and then moved to the 55 chart. My cost would have been about 574.00 and the down turn on the 10 E chart would have meant little to nothing. If I had used a 5 E chart for the action I would have gotten in somewhere around 10:15 which still would not have been the best entry.
Anyway I am thinking about placing an action chart just for the summer zone.
I did end up with a profit on this trade of $896.86. But the trade itself would have been best if purchased ealier.
Edited 1 time(s). Last edit at 05/18/2013 03:09PM by Darcy2.
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