[brownsfan019]

It's not too often that something grabs my attention on forums, but I've always enjoyed Thales' posts and once he dissected his trading with pictures I wanted to see how it looks on daily charts.

I started the thread here b/c I plan to look at candles and might end up w/ my own spin on it so I didn't want to take his thread off track.

Idea here is that I'll use freestockcharts.com and look at some daily charts as time permits and see what I can find. My interest in this would be for swing trading as my daytrading style doesn't really mesh with swing trading that well. I'm very much an intraday trader and it's been awhile since I've looked at daily charts.

If you're not sure what analysis will be used, go to this thread and start reading. If you want the shortcut, read this post.

Feel free to join along if you are using the same analysis as Thales has presented. The only difference I am adding (at this point) is seeing how the candles look as well on the daily.

[brownsfan019]

IWM - Russell ETF

[Gabe2004]

Originally Posted by brownsfan019 »

IWM - Russell ETF

Hello BF

Why not go short at the pink line?

Gabe

[brownsfan019]

I agree - good catch!

[brownsfan019]

IWM revised:

[brownsfan019]

AAPL JUN09-JUL09




I wanted to try out a stock and found AAPL. I'm not sure how smooth this will work on daily charts with stocks due to the gaps. This particular timeframe on AAPL provided 3 trades - 2 winners, 1 loser. But with minimal gaps, it was doable. Some other stocks, even AAPL later, have such big gaps that if you do trade them you could get massive slippage on the entry or get skipped over on your entry price.

I might just put together a collection of liquid ETFs and see how that looks for now. That will also help me focus on a small group b/c where do you even start w/ stocks? That's always been my issue w/ stock trading. We'll see.

[brownsfan019]

Here's a few forward looking charts. Let's see what we can find in real-time. All daily charts.

GLD - TRIGGERED TODAY




SPY - LOOKING FOR A LH TO BE PUT IN AND THEN WILL PUT BUY STOP ABOVE H

[brownsfan019]

Now here's why I didn't want to post in the other thread b/c I could take things in a different direction...

Personally, there's something that just gets under my skin about buying above a big high or selling below a big low. That's just not in my blood. So here's a spin on the idea - plot your H and L then look for a candle pattern with the HL or LH "Zone" and take the trade. Examples:









And if you want to refine that zone even more, you could use basic fibs to give your possible trade zones. Basically the key is entering between the H & L.

This is also where I think a background in candlesticks is very useful. In the examples, highlighted candles are bullish in nature to get long and bearish in nature to get short. Keep in mind my version of bullish or bearish may not be exactly what you've read in books, but basically I want to see some bullish activity to get long and bearish to get short. If it doesn't match a shape on a book or website, I could care less.

Entry method is also key here, which I discuss here. At this point, I would feel comfortable entering on a buy stop above a high or sell stop below a low.

The observant guys will say - isn't that just pullbacks? And I guess it is but it's a filtered pullback system. If you've traded or tried pullbacks before, the decision is always defining whether or not it's pulled back to your entry area or not. And how long is the pullback valid for? This at least gives you some general rules to use in that regard.