[BlowFish]

Good to see you are still around Jerry!

[jperl]

Originally Posted by mushin2003 »

Thanks Jerry for the update and answer. I believe the trade management

I do not know if you have the time or desire but I was wondering if I may be able to present my trading strategy to you for some objective comments? I will say it is not really based on a statistical or mathematical model.

Your best bet instead of PMing me is to post your strategy in the appropriate thread here at TradersLaboratory. Don't be shy. People here are very helpful and you will get lots of feedback.

[mushin2003]

Hi Jerry,
I am not sure how to phrase this question so let me tell you where I am going with it first. Is knowing when to reverse a trade learned more from experience or is there something on the chart that may give clues?
In theory I can establish any stop loss price I want and be comfortable with that say down to only buying 1 share. In reality though I am targeting price moves between the SD1&2 or VWAP lines on my chart. I prefer not to use these though as stop loss areas due to the price distance involved affecting my entry size. It is not that I cant use them. So instead I typically look for a stop loss area on the other side of a HUP near my entry price. On trending days with moderate pullbacks I find I am getting kicked out 3-4 times looking for a reversion back to a SD or VWap.
Or stated another way is there something I can key in to know when to ride the trend?

I believe there was talk of this before: when you may have 2 symmetrical spikes within ex. 90% total volume of each other would you consider the more recently created spike perhaps as more relevant in its physical location on the chart to the VWAP?
For example, we have 2 volume spikes one of 100k (PVP) from 10AM the other 95k from 2PM with the VWAP in between these. Price is moving up from SD1. Typically I would be looking for shorts but could I justify taking a long trade here based on the size relationship between the 2 spikes and the time frame for this example is 3PM.

I tried to attach a chart showing 2 days of data one a trending day and the other a nice range day that had the VWAP in between 2 large spikes until the close when the PVP moved again. If you want to could you comment on how you would have traded these 2 days assuming your current risk tolerance. The purple line is the VWap.

Thanks,
Rob

[jperl]

Originally Posted by mushin2003 »

I am not sure how to phrase this question so let me tell you where I am going with it first. Is knowing when to reverse a trade learned more from experience or is there something on the chart that may give clues?

I don't think I ever discussed trade reversal in the Market Statistics threads, but in any event the "clues" as you call it are places on the chart where if you are say presently long you should be short and vice versa. However this involves very careful trade management prior to your initial entry. You should be asking yourself several questions prior to the long entry. For example, a)what is my risk tolerance on this trade? b)If I have to reverse this trade, where would it be? c)would I still be within my risk tolerance if I reverse this trade with increase in size? If you can't answer these questions, then don't take the initial trade.

Originally Posted by mushin2003 »

I believe there was talk of this before: when you may have 2 symmetrical spikes within ex. 90% total volume of each other would you consider the more recently created spike perhaps as more relevant in its physical location on the chart to the VWAP?

This has been discussed on these threads before but I don't recall where. It's called a two boob day. There are some who believe that when price touches the second boob, it will bounce back to the first boob. My preference would be to trade between VWAPs rather than boobs, but this can get complicated and you will have to find your own way through the maze.

[igork11]

not yet, just want to know what it is