How to trade and/or invest profitably --- without the Bullsh*t

[over9k]

OK guys I've posted the beginner's chart reading guide and you can find it over here: https://www.aussiestockforums.com/t...alysis-chart-reading-101-for-beginners.36157/

not sure if @Joe Blow might want to just link it in the first post of this thread for the new guys to read first so they can understand what the duck is saying?

 

[bux2000]

Hi Tech/a,

Not sure if I am looking into the headlight of that freight train, but does BLU float your boat today.
Some one once told me they traded ATH,s it meant nothing to me at the time and I have now refined it a bit.
Will BLU have to close above 10c to be a contender or has that resistance been broken today?
I bungled a trade on NWC and watched RNU go bye but I live in hope.

If this is regarded as advice please delete my post

All the best

Hi Tech/a,

Can I apologise for my outburst.

The eureka effect (also known as the Aha! moment or eureka moment) refers to the common human experience of suddenly understanding a previously incomprehensible problem or concept.

I have spent some time looking at some of your older threads they make very interesting reading..... You are the real deal.
I would just like to thank you for taking the time to share your experience and insight, and look forward to future posts.

All the best
bux

 

[bux2000]

OK guys I've posted the beginner's chart reading guide and you can find it over here: https://www.aussiestockforums.com/t...alysis-chart-reading-101-for-beginners.36157

Thanks for the work you are doing too Over9k

bux

 

[tech/a]

Hi Bux
I saw your post at the time but as it wasn’t currently something I’d follow
didn’t comment and promptly forgot.
I wasn’t ignoring you. My apologies. Will elaborate later if you like.

 

[Cam019]

So from the last post we are looking for a test of the current high.
The Volume Control Bar and its Volume control Zone are likely to
influence price. Unless momentum continues I expect consolidation.

Lets see what happened

View attachment 121484

So instantly we are deep in profit.
With a new bigger V/C bar and zone Again what I want to see is a short
inside day and either a continuation of momentum or a compact continuation
pattern

Next Day

View attachment 121485


So from here I expect the High to be tested as
The bar finishes nice and strong on average volume so
------Encouraging.

View attachment 121487

Today we see the first real bullish bar in the consolidation but
the low of .063 has held.
Looking Good.

View attachment 121488

The break out bar and the next bar haven't displayed Strength I've kept moving my stop up
(Yellow) But Now i get a chance to really tighten it up under this short squat bar.
At .077. I dont want to give away much of my very nice profit.


View attachment 121489

To be continued.

Are these mark ups helping understanding of what I look for and why I move trailing Stops.??
Helpful or confusing?

@tech/a what was the ticker for this chart?

 

[tech/a]

Cam

If your going to read a chart there is no point knowing the ticker
during an exercise. You need to be able to consider all possibilities.

There is more on THAT chart to come.

The chart is telling you an absolute host of important information.
WHAT IS THE CHART SAYING?
Seriously I dont have a clue what most of my trades are involved in.
I dont care WHY. I just care about a potential trade and when in a trade
how to extract as much as I can from it with least risk. Crazy--to
the academics yes---to a few of us ---the way we roll.

The Question to all.

How would you have traded this or would you trade it NOW?
So if your in it what would your Trade management be and WHY?
So if you weren't and you wanted to trade it or watch list it
How would you set it up?

What is the chart saying?

 

[Cam019]

I don't care about the fundamentals or what the company is. I just wanted the ticker to bring it up on my platform to see how the trade continued.

 

[tech/a]

Cam I’ve not finished yet
I’ll continue soon. I was hoping for more interaction
but if you really need it before I can present more
private mail me.

 

[Bob111]

The Question to all.

How would you have traded this or would you trade it NOW?
So if your in it what would your Trade management be and WHY?
So if you weren't and you wanted to trade it or watch list it
How would you set it up?

What is the chart saying?

This is where I have some confusion. Would you buy on the last inside day hoping for a jump above the volume control zone or wait for a close above the .082 level?

 

[tech/a]

@Bob111
@Cam019

Continuing on As I was in this trade I was stopped out BUT as ALWAYS in a correction zone I place a re buy stop limit order outside the zone where it is clear that its not a test of the high but a continuation--this is NORMALLY 3 ticks. In this case .088c

This stays there until its proven otherwise by price action
EG a deep selloff on volume deep into the V/C area.
OR
It just falls slowly lower and lower over a long period or laments in the
V/C zone doing nothing. (20 or more days)

Ideal continuation consolidations last very short periods if price trades outside of
the consolidation in our direction by 3 ticks or more.

1-5 days The best
5-10 days pretty good
10-30 days Generally not that strong

So now we are setup for trading on this chart if it presents.
I have protected my profit and placed a trade if Im premature
in exit.



Next What happens next!

 

[Bob111]

Next I would say leave the buy stop limit at .088 but in my uneducated opinion I would say the next bar will be down.

Do you find placing a buy limit order above the V/C zone ties up too much money? Obviously if it goes in the direction you want then this works but if you have a few that go the opposite way that money could have been better utilised on other trades. I guess what I am asking is how do you choose one trade over another if you have identified a few stocks with V/C zones?

Also just out of curiosity your purple V/C zone starts at the close of the last bar in the blue zone instead of the high. Is this because it wasn't a gap?

 

[bux2000]

I know you were trying to keep the Bullsh#t to a minimum but here goes.

Option 1. The next bar closes down to support around .074c - .072c least probable
Option 2. The next bar takes out your Target buy @.086c possible because of upward momentum
Option 3. I think more probable for a consolidation day with an open and close within the high and low of the previous days high and low.

Can I ask do you set your Target buy as a buy at market or a limit buy and the same with your stop loss ?

Thanks
bux

 

[tech/a]

Do you find placing a buy limit order above the V/C zone ties up too much money? Obviously if it goes in the direction you want then this works but if you have a few that go the opposite way that money could have been better utilised on other trades. I guess what I am asking is how do you choose one trade over another if you have identified a few stocks with V/C zones?

Bob I only trade a max of 4 trades at a time. I've generally enough capital to cover all trades.
Im forever culling trades which are stagnant.--But Im not up to that part of my trade management YET.

Also just out of curiosity your purple V/C zone starts at the close of the last bar in the blue zone instead of the high. Is this because it wasn't a gap?

There is a gap in both Bars
A trade from the high to the next open is a gap.
Both bars did this. The correct marking is from the Open of
the previous bar to the high of the V/C bar UNLESS trading in that bar goes below
the close of the previous bar---in that case it would be the entire bar.

Can I ask do you set your Target buy as a buy at market or a limit buy and the same with your stop loss ?

If Im not close to a computer or cant use my phone Ill set Stop limits
There is generally plenty of trading at a level to get filled.
If its a fast moving replacement I may sell at market but often place a
Limit sell below two Levels packed with Buy volume.

Here is the NEXT BAR



This is WHY I always place a trade that consolidates well in the top of a V/C zone
on a watch list with a Limit buy order in place. The number of times Im filled without
knowing it took off is not to be ignored.

 

[bux2000]

Hi Tech/a,

Can I just ask some more questions?

1.Do you use a weekly chart or longer to establish longer term support and resistance or only work within the Daily Charts once the breakout is established ?

2. How important is momentum, your demonstration chart appears to consolidate and then a small dip before a breakout, while other charts show a much larger dip and maybe a higher low than the previous low.... if that makes sense..... and then the breakout ?

Thanks again for your time.

bux

 

[tech/a]

Hi Tech/a,

Can I just ask some more questions?

1.Do you use a weekly chart or longer to establish longer term support and resistance or only work within the Daily Charts once the breakout is established ?

Daily and while in a fast moving trade 5-30 min charts.

(2) How important is momentum, your demonstration chart appears to consolidate and then a small dip before a breakout, while other charts show a much larger dip and maybe a higher low than the previous low.... if that makes sense..... and then the breakout ?

Thanks again for your time.

bux

Bux all sorts of things occur in a consolidation
each bar can tell us something or often NOTHING about a possible outcome in that consolidation
Small tight high end consolidations are by far the best
deeper corrections tend to be less likely to continue UNLESS that volatility smashes through in under 10 days
My Watch-list and Stop limit orders are being culled all the time.
The best continuations happen quickly under 10 trading days.
Not hard and fast but most common.

 

[bux2000]

Hi Tech/a,

Thank you for taking the time to give such detailed answers, and all making perfect sense.

All the best
bux

 

[tech/a]

Unfortunately we have to do some work
often for negative return
Now I know how a travel agent feels!

 

[bux2000]

Yep............ Charge ups good.
But without risk there is no chance of those big rewards.

 

[Bob111]

Hey tech,
If you place a stop limit 3 pips above a volume control zone but your order doesn't get placed and the price goes higher do you chase it or let it go? I had one where it opened a pip above my stop limit and closed up another 7%.

 

[tech/a]

Yes I would but less of a position 50%
I’d then be looking for a pullback to load up more
I usually do this with a 15 min chart
that pullback often doesn’t get down to either
of my initial buy levels