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Daffy Trades Micro Patterns under $1

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Re: Daffy Trades Micro Patterns under 20c

Received this question privately and will answer R/D at the same time.

VSA and small caps are like oil and water at times. So these questions are important and as they form a part of my discretionary trading process---should be adequately explained/answered.

Question.gif
 
Re: Daffy Trades Micro Patterns under 20c

ADJ

Raise initial stop to 10c

Reason.
I like trades to move straight away in
my direction. If they don't it generally
means the analysis (Looking for momentum)
is wrong or timing is not right.

While it currently isn't coming off its not
exhibiting demand.
 
Re: Daffy Trades Micro Patterns under 20c

Hey tech/a, got a VSA question on API.

Looks like a few no supply bars last last week around the 1.55 level.
Then we get this big bar on tiny volume last fri. I've read some pretty conflicting stuff on this kind of low vol move.
Click to expand...

Ill answer this here although not a stock in this thread---but raises questions that are relevant.

The section of quote in Black.

My light bulb moment in the battle between bull and bear was when I looked at any instrument and determined that its price was governed buy one thing SUPPLY---not demand.
Supply has the capacity to swamp demand and supply can and is withdrawn.
Price can only rise if Supply is withdrawn.
If supply keeps hitting bids at a level price cant go up.
If supply cant get filled it will search for lower prices.
Supply is more emotive than demand.
Supply causes volume spikes---either by its withdrawal from the market-- or its entry into the market.

To your chart

API.gif

I might also take this opportunity to answer a question often asked re volume and VSA (Particularly applicable to small caps)

How much volume is needed to be able to use VSA to be meaningful

My answer is as much as possible.
Volume and Range can be impossible to read but in an instant massive changes in price can make it instantly readable and often highly predictable. Take one on my current watch list MRF

Instant massive volume shows a vertical rise and a move of around 100% +
Sellers cant ignore that---There have been people bottom drawing this for 12 mths
This IS XMAS to some of these punters so OUT THEY COME.(So now we see massive supply)

Often a weekly chart can give you enough volume and range to have some meaningful analysis.
Even one bar can hold a lot of information.

I'm watching to see where this level stops.(Find support---where supply withdraws).

This could represent an opportunity to get on as these recent highs are tested.
OR it could fizz and do nothing but range for another year.
There are some bars that could be coming very soon which could give us some good trading opportunities.
 
Re: Daffy Trades Micro Patterns under 20c

Thank tech/a

followup q and somewhat related to topic:

Are you going to try enter these trades Intraday? eg MRF due to volatility
 
Re: Daffy Trades Micro Patterns under 20c

skyQuake said:
Thank tech/a

followup q and somewhat related to topic:

Are you going to try enter these trades Intraday? eg MRF due to volatility
Click to expand...

Yes I will enter intraday if I see it and I don't have it on a buy order.
MRF seems to have pulled up but not interested yet.
With deep retracements I find its less likely to test the recent high in
the near term. Shallow retracements are by far the best.
 
Re: Daffy Trades Micro Patterns under 20c

Day surgery today (Elbow).
Pickings are rare at the moment and as Wysi pointed out not ideal conditions--but we trade all conditions.
We are only trading long in this exercise.
I like positions to move straight away if they don't then I feel they are in jeopardy.
Our only open trade I'm moving stop to .105c

Nothing I really like and some patterns have failed
Some have morphed and some have triggered but I have not traded.

Will post up more when I can (Clean the above up). ---
 
Re: Daffy Trades Micro Patterns under 20c

While its a bit quiet getting underway I'm sure it will pick up
soon enough.
Here are the current charts of interest to me.
Ill post if I enter.

Micro 6.jpg

Here is the full watch list tonight

Micro 7.gif.


Off Topic a bit

API

looking interesting
Testing the highs Average volume
on the test reversal---watching
 
Re: Daffy Trades Micro Patterns under 20c

Devised another scan so here are a few more'

Click to expand

Micro 8.jpg

And a new watchlist

Micro 9.gif
 
Re: Daffy Trades Micro Patterns under 20c

Tech,

Did you get onto PRR yesterday?

Big jump today, up 176%.
 
Re: Daffy Trades Micro Patterns under 20c

SuperGlue said:
Tech,

Did you get onto PRR yesterday?

Big jump today, up 176%.
Click to expand...

Wow no.

It came up on a search yesterday as the initial break was under the 5c Threshold----I was expecting retracement not 176% increase.
I reckon its Pixel who has a mate who trades these on breakout.
If it breaks he keeps riding stock most think is over bought.
Does very well ---particularly if you get one like this.
 
Re: Daffy Trades Micro Patterns under 20c

tech/a said:
Wow no.

It came up on a search yesterday as the initial break was under the 5c Threshold----I was expecting retracement not 176% increase.
I reckon its Pixel who has a mate who trades these on breakout.
If it breaks he keeps riding stock most think is over bought.
Does very well ---particularly if you get one like this.
Click to expand...

I think with these ones you can't trust the chart or volume of the Aus line.
The US line (PBMD US) traded equivalent of 2.7 Billion shares overnight, Aus just tags along. (and commsec sellers happy to take profits today, while I'm expecting the yanks to continue buying)
 
Re: Daffy Trades Micro Patterns under 20c

Still not finding good setups
So have asked Joe to change
Topic to 50 c
 
Re: Daffy Trades Micro Patterns under 50c

At last some better setups.

Click to expand

micro 10.jpg

micro 11.jpg

With only on trade open I'm sure we will see some interest in the coming week!
 
Re: Daffy Trades Micro Patterns under 50c

tech/a said:
At last some better setups.
Click to expand...
I am keen to learn the skill involved trading these stocks if that is what is required. I could not get a consistent run happening and as with most trades it was when to sell that still gets me frustrated. I suppose a micro pattern to sell would be an answer but I can't see them, only the relatively quick selloffs when the majority exits. A target sell price doesn't let the win run?
 
Re: Daffy Trades Micro Patterns under 50c

Wysiwyg said:
I am keen to learn the skill involved trading these stocks if that is what is required. I could not get a consistent run happening and as with most trades it was when to sell that still gets me frustrated. I suppose a micro pattern to sell would be an answer but I can't see them, only the relatively quick selloffs when the majority exits. A target sell price doesn't let the win run?
Click to expand...

Wysi

A great question/experience/observation. Will detail an answer hopefully tonight which we will be using here..

For the exercise Bought CLO 16500 @ .255c Initial Stop .23c

SHE pending at .055
PRU also pending
 
Re: Daffy Trades Micro Patterns under 50c

PRU at .48c
SHE at .055c
Both filled.
Charts etc tonight.
 
Re: Daffy Trades Micro Patterns under 50c

Discretionary Exits

This is how I handle them.

I know that when a stock moves in my direction it only has a finite number of things it can do.

(1) Rise Sharply
(2) Rise Steadily
(3) Pause for a short time before rising or falling
(4) Fall and pause before continuing to rise or fall.
(5) Reverse and change trend.
(6) Enter into a long term range.

As discretionary traders we need to be able to anticipate bar by bar what is happening on the chart.---to the best of our ability.
To maximize reward to risk we need to maximize profit while minimizing loss and we need to do it as often as we can.

While we wont pick exact tops or exact bottoms we will over time become better at getting closer.
There are a number of things to look for on a chart which will give us hints of possible future price action.

(1) Gaps
(2) Range
(3) Support and Resistance
(4) Volume
(5) Intra day analysis of single bars.
(6) Time (How long has it taken)
(7) Price average.

As time goes by Ill comment on charts as I see them.
Not everyday is of interest ---- often a group of bars tell more than a single bar.
 
Re: Daffy Trades Micro Patterns under 50c

Today's trades


Micro 12.jpg
 
Re: Daffy Trades Micro Patterns under 50c

SHE

Stop moved to .049
 

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