***** OT *****
The pivot points I use are created based on a 40 day or 200 day chart, looking for significant highs and lows during those periods, as well as 10ma and 50ma studies. I used to use a pivot point that was calculated by adding the previous days H+L+C/3 to get the primary pivot, and then a machination of formulas to find two support and two resistance points. For me, the chart pivots work better. For a long term trader, the true pivots are probably better.
So, for example, today on ASND: B 54 5/8, SS 51 5/8. During the trading day, if either of these prices are met, I'd place an order. At 51 5/8, I SS. ASND briefly traded at 51 1/2, which would qualify as "no followthrough." So, when it got back to 5/8, I would dump it and go long, still with the same goal of getting a 1/4 or 1/2. In this case, it followed through back up 3/4 and I decide based on L II when I should sell. Now I have made two trades, cleared $750 and paid $80 in commissions. The trade turns profitable through nimble fingers, but as a setup it would be considered a failure. I come up with about 20-30 setups the night before, and only trade the setups that hit the price points. Today, the banner setup was CNWK SS at 68 7/16, for a little over $8,000 on 1,000 shares.
This system is based on Linda Bradford Raschke's book Street Smarts and Jeff Cooper's book Hit and Run Trading, and modified to fit my trading style and tastes...it's not for everybody. I do about 6 hours of homework a night, going through about 300 charts. I pick 10 'A' candidates and '10' B candidates and '10' wildcards...ASND is almost always a 'wildcard' because it is a volatile stock [good thing], but most of the time nobody knows what the hell is going on, myself included [bad thing]. This system could be defined as a volatility breakout system.
Here's Linda Bradford Raschke's Site:
LBR Rules
mrci.com
LBR on Volatility Breakout Systems
mrci.com
One of my other favorite sites is:
hardrightedge.com
For those of you that don't give a care about trading, please accept my apologies for putting 'trading' information in the ASND thread, but we have talked a lot about trading in the past, and I was defining an ASND trade today... |
