Friday, November 07, 2008

More GE Trades

Today's GE scalps shown above.
11:00 divergence of GE and the NYAD on 2 minute bars (white down arrow), which (interestingly) corresponds to an 816 cross.
The divergence lasts 10 minutes (which as mentioned in previous posts, is a typical duration.)
Parabolics fire a SELL on GE at 11:16 while the NYAD continues down.
For my own trading I frequently take the trade after the second 2 minute parabolic signal (white dot) and then double up after 4 dots, as this confirms the trend.
This turned out to be a really nice fade that lasted 18 minutes that produced a .42 gain before the NYAD reversed at 11:38 (big pink blob) and kicked me out of the trade.
The next setup kicks off at 12:50 when GE and the NYAD once again diverge until 13:08 (or 18 minutes, which is on the long side of the expected divergence duration).
At 13:08 the parabolics fire a SELL and GE drops .08 in 2 minutes.
I enter short at 13:09 (late to the game) and exit after only 10 minutes when the parabolics fire a COVER and GE hits the mirror of the NYAD downslope line and projection (orange/blue line).
Net gain from trade = .07 (Hey!, at least it wasn't a loss).
With the NYAD still downslope and being a glutton for punishment, I short GE again at 13:33 on the parabolic SELL signal.
My target, of course, is . . . (this is a test). . .the mirror of the orange NYAD downslope line.
16 minutes later our target gets hit and with the parabolics firing a COVER signal at 13:49 (on 1 minute bars), I'm out.
Net gain from trade = .10, so a little better than the previous but nothing to write home about.
I'm done for the day as I've a few errands to attend to.
Summary for the day. . . 3 trades. . . total gain .60 and I'm flat going into Monday.
Today's total range for GE (as of 15:00) is 18.28-19.10 = .82 . . . so I'm happy to walk away with .60 for 44 minutes of exposure.

4 comments:

klynn55 said...

why the use of scwab charts? was it a choice or an evolution ?

bzbtrader said...

klynn,
Every chart I have posted on GE/NYAD and GE/Qs trades for the past 2 weeks has been a Schwab StreetSmart Pro chart. That's the platform I use to trade and have used for the past 20 years. I use TS and TC2007 for testing and analytics only.

Eric said...

What are the parameters used for the parabolic SAR ? 0.07 and 0.7 ?

bzbtrader said...

Eric,
I published the SAR settings in the Nov 4th post. If you want to understand the history and logic behind the trade you should go back to the Oct 23rd post that kicked off the GE series and then read forward.