Daytrading with Consensus

[Ares]

Out  AVNR at 4.19

I should have waited for price to go above the hourly 8ma above the previous hour's high or stick to buying weakness close to the hourly 200ma.

[Ares]

EPCT was down at least 17% from the open, had a double bottom on the 1 minute chart, broke above the reaction rally, pulled back to 3.86 using the upper downtrend channel as support, broke above the previous hour's high that is above the 8ma and currently trading at 4.43 with a swing high of 4.46
I should really pay more attention to those double bottoms.
Another lesson learned.

[Ares]

Sentiment on AVNR seems to be turning around to positive.
In at 4.27 using the 1 minute chart's uptrend line (bought weakness).

Out  AVNR at 4.19

I should have waited for price to go above the hourly 8ma above the previous hour's high or stick to buying weakness close to the hourly 200ma.

AVNR went as high as 4.40 after my entry.
I saw it break the trendline a few times but didn't get out.
Ended up getting out at a loss.
Should have listened to that trendline break.
In the first place I entered on the third trendline I drew earlier which I knew was a risky entry but still went for it.

May this thread be a reminder to me and others to stick to the plan.

[Ares]

In IVAN at 2.32 1 cent above the order taker/market maker and used the  hourly 200ma as a referrence for support.
Volume was rapid then slowed down creating a big volume outside the B- (momentum low).
Will be watching if my suspected ax leaves the bid.
Will be watching the recovery rally and will place a resistance line on it.
Will be watching volume on the second dip.
Just placed resistance line at 2.36
will be watching if 2.36 will be broken, If not, I'll try to get out above 2.32
volume currently low on the way down and is inside the B-

[Ares]

In IVAN at 2.32 1 cent above the order taker/market maker and used the  hourly 200ma as a referrence for support.
Volume was rapid then slowed down creating a big volume outside the B- (momentum low).
Will be watching if my suspected ax leaves the bid.
Will be watching the recovery rally and will place a resistance line on it.
Will be watching volume on the second dip.
Just placed resistance line at 2.36
will be watching if 2.36 will be broken, If not, I'll try to get out above 2.32
volume currently low on the way down and is inside the B-

So far green is being printed in the time and sales.
2nd low is at 2.32 (marked it when price made a new high) right now on lower volume.
Would that be a double bottom already?
Will this break 2.36?
We shall see.

If the hourly 200ma fails, next buy target will be the daily 200ma currently at 1.75.
The nearest daily support that I coud see right now is 2.30

[Ares]

IVAN's too slow.
It's giving too much suspense.
I guess that's one of the things I like about daytrading.
So far, price broke the 1 of the downtrend lines I drew.
It's working on the second and third.
Just broke the second downtrend line I drew.
My goodness, the bollinger band is getting too tight already.
Where will this coiled spring break?

[Ares]

IVAN's way too slow right now that's why it's better to trade on the first and last hours of trading.
3rd downtrend line I drew was recently broken and a block came in on the green.
Will more blocks come in to break that 2.36 resistance?
I wonder if that was scalper volume making money on a 1 cent spread.

[mbaugh]

Hello, just wanted to post my two cents regarding your IVAN trade.  It has always been my experience that when a stock is down close to its low of day late in the afternoon then it will continue to go down some more during the last hour.  I wouldn't even waste any time on a stock that is down late in the day.  As for CIMT, I believe today may be the last day to grab some shares under 3.70.  Good luck, have a nice weekend!

[Ares]

Hi mbaugh,

I'm still keeping an eye on CIMT.
It does look like it may go up soon.

With regards to IVAN, I just want to test the strength of the 200ma on different timeframes.

I wanted to test that long time ago.
My reason is, if the 200 moving average is a popular gauge of support and resistance, price must bounce on that somehow - the question is how much. Probably the answer is with the Fibonacci retracement tool which I don't have.

My idea in a simple form is this:

If I have $5,000 as an initial capital.

I would start buying a stock with a "going with momentum strategy", take profits (hopefully), and re-buy on the 200ma of the hourly,daily and weekly timeframes in combination with the horizontal support (that is close to the 200ma of the current timeframe), 1 minute chart, time and sales, and hopefully read the market maker actions on level 2 correctly.

Simple scenario:

price = $5 for first entry with 1000 shares and a stop loss of 10 cents with a reward target of at least 25 cents.

previous week's high =$4.50

weekly 8 ma =$4

hourly 200ma =$3 will be the next buy with the same 1000 shares and 10 cent risk, 25 cent reward ratio.

Daily 200ma =$2 will be the next buy with the same 1000 shares and 10 cent risk, 25 cent reward ratio.

Weekly 200ma =$1 will be the next buy with the same 1000 shares and 10 cent risk, 25 cent reward ratio.

With this project, I agree with you, most of the stocks that are down late in the day, tend to go down further.

I will  keep in mind what you said about the time being wasted on a down stock late in the day.

Maybe, I should wait for a confirmed double bottom or inverse head and shoulders (my favorite patterns) on the 1 minute chart in combination with the 200ma in the different timeframes.
Wait for momentum to come in at the time and sales and enter on a breakout or pullback (after the breakout) to save time.

[Ares]

Looks like IVAN just broke out from my 2.36 resistance line.
The problem I have with entering on a breakout is I end up paying a higher price than I wanted.
Sometimes it goes so fast and doesn't turn back  for a while.
Another tendency is is to chase it just to see the stock lose the upward momentum and end up dropping - fast.
That was my experience trading real money about 4 years ago.
I got in close to the high of day (went with upward momentum), didn't get out when it stalled (and didn't listen to our instructor to get out), watched the stock tank, got out because I couldn't stand the pain anymore (just to sell at support and became part of the momentum low volume), just to see the stock rocket back up without looking back to the most recent breakout area (the 1 minute chart didn't have a double bottom anymore and ended up looking as a takuri candle on the hourly chart).

I still remember my instructor asking me if I knew my support/resistance areas (because I sold right at support).
My answer was: I knew the resistance but didn't have a plan (didn't chart my support line)  to re-buy in case the stock tanks.

This is where I find 3SOF members helpful:

Comments reminding me to avoid stocks that are trading close to the end of the day
Confirming (and disagreeing) with my strategies.
Keeping me up to date
and many more.

I give my thanks to everyone that has contributed so far in my learning experience.

[Ares]

Out Ivan at 2.36 this may go up post market but I'll stick to that exit for now because it didn't break the 2 minute 200ma (it bounced off it at 2.40).

[Ares]

I will still be using strategies that I think is effective but the latest strategy that I would like to test is:

To look for a chart that has nice pattern, preferably a double bottom or an inverse head and shoulders.
Will be looking at Ascending triangles, cup and handle, and other familiar patterns too.
Price near the lower linear regression line.
RSI(2) below 20
stochastics below 20 and about to cross or just crossed up.
MACD uptrending and about to cross, just crossed or bounced near the zero line.
Stock active in the premarket.
Trading at least 2.5% above the open
Has a positive net price.
Uptrending in the 1 minute chart (better if multiple timeframes are uptrending too)
Breaking resistance with lots of green prints (block trades even better) hitting the tape.
Volume going higher than previous day's volume
Nice level 2 set up
bBd refreshing 100 shares
No sign of Big ECN seller
Suspected Ax leaving the offer
Level 2 moving counterclockwise

and try to trade within 3hrs from the open on a day trade.

[Ares]

Thanks to Cumulina I may be stuck in the computer longer now (I don't need to go to the library anymore)

Seriously, I really like the website that He/She provided.
It's easy to save and paste it here at the 3SOF website too.

Here's a link. http://www.chart.nu/wolfewave.htm

I'll attach a copy of the wolfewave pattern from that site in here as a quick reminder of how it looks like.

[Ares]

Here's another idea that I would like to consider for an exit strategy.

[Ares]

I like this portrayal of support and resistance.