Saturday, August 22, 2009

More Signal Confirmations

Here's one more example from Wednesday of what I look for intraday on the Qs.
This one turned out a bit better than the Tuesday trade.
Today we're looking at 2 minute bars, which is actually the time frame you need to monitor to catch the VXN crosses in real time.
Looking at the VXN crosses in hindsight alters their relative position on the chart due to a change in scale dynamics as time progresses: the greater the time frame lookback, the greater the distortion of the actual cross.
#1 . . At 11:50 the Qs are sitting mid point (actually dead on 62% fib line)
#2 . . The parabolics are on a BUY and the VXN crosses at 11:50
#3 . . The 3 MAs are upslope and the MACD histogram is above the zero line and rising
#4 . . This is a low risk entry given the Qs relationship to the pivots and I enter long with the PP as my first target (line of resistance).
#5 . . The Qs blow through PP in only 14 minutes, run a little spill over and the parabolics fire a SELL (cover) at 12:18, at which point I exit the position.
This was a quick little trade, just 28 minutes. I actually added another BUY lot to the trade at 11:58 since it's my experience that this type of momentum (greater than 60 degree slope) and close proximity to the next pivot will drive price to that level.
I exited both positions at 12:18 and am off for the rest of the day.

1 comment:

old crow said...

Bob, You might want to look at this for future.
1. On 8/18 there was a super spike to 39.98 and it was logged on Nasdaq as recorded
2. The actual numbers that I did manually for 8/19 were as follows off of 8/18 and throwing out the 39.98
AH was 39.09_38.91_38.98

the points for 8/19 were
R2 39.42
mid point 39.33
R1 39.23
mid point 39.08
8/18 close 39.04
pivot point 38.92
mid point 38.83
S1 38.73
mid point 38.56
S2 38.42