US Stocks - Short Trade Patterns

[CanOz]

these are all intraday US equities,
are u using MS's system (plus your tweaks)?

EOD, i don't trade them through the session, i go to bed.

Looking for reversals with MS's scan, i trade patterns too but they're are setups from either Nick or Jason Leavitt.

Cheers,


CanOz

 

[James Austin]

Kind of wish i had of played the breakout now!

BRCD - my limit order was banking on a downside break.

Cheers,


CanOz

a short at next open,
close to 4.56
may be not such a bad idea!?

 

[CanOz]

a short at next open,
close to 4.56
may be not such a bad idea!?

Careful, Wells Fargo just smashed earning expectations, Futs up 1.4%

CanOz

 

[James Austin]

Careful, Wells Fargo just smashed earning expectations, Futs up 1.4%

CanOz

yes, it must open below yesterdays close, to be valid, from my view.

but an upbeat dow, changes everything

 

[James Austin]

BRCD, didnt lose the plot in this last session.

still a short candidate if closing at/below $4.55, entry same,
then down, down, down

we'll see,
not a share trader and know nothing about this stock,
just testing a new system

 

[CanOz]

Longs did well last night and shorts got covered. Got stopped into another long too, one of Jason's setups.

Everything still overbought, makes it tough to find new setups with good potential.

Have a nice Easter!

CanOz

 

[MS+Tradesim]

MRC,

I do use volume but again, in a simple way. Mainly looking for high volume on reversal bars after steady volume in the trend. Or high volume for momentum entries. In both cases I just want to go with the flow, not fight it....so order flow in the DOM actually provides the main basis on whether or not to take entry signals. I want lots of liquidity and turnover so my intended trade is always a comfortable fit, never a mover. I take my entries at the end of the day as the volume/order flow in this period provides very reliable info on short-term sentiment for the intended share. (I just broke a 23 win streak on Tuesday. Went out with a bang too. Ended the streak with the biggest loss I've had all year, -6.5R But that didn't hurt the big picture so nevermind.) Plus by taking the close one regularly earns a gap the next day, rather than losing it by waiting for the open.

Actually, what you and Cart said you do has given me an idea - the bit about fading potential tops/bottoms rather than waiting for the reversal. I might play around a bit with that to see if I can mechanise something. Only problem with shares is they are biased upwards so fading tops seems counter-intuitive. But I'll have a look at that, I think. Cheers.

** Signing off for the weekend. Have a good Easter guys.

 

[MRC & Co]

MRC,

I do use volume but again, in a simple way. Mainly looking for high volume on reversal bars after steady volume in the trend. Or high volume for momentum entries.

Actually, what you and Cart said you do has given me an idea - the bit about fading potential tops/bottoms rather than waiting for the reversal. I might play around a bit with that to see if I can mechanise something. Only problem with shares is they are biased upwards so fading tops seems counter-intuitive. But I'll have a look at that, I think. Cheers.

** Signing off for the weekend. Have a good Easter guys.

First paragraph, think I stated it in this thread, it's the exact times I use volume also, very simple, but works well. Appears our methods are very similar, just one mechanical and one discretionary.

Second paragraph, may be worth a look, but unsure on stocks. Infact, I wouldn't even work on certain indicies I would think, all depends what instrument you trade IMO, I know the SPI is very choppy and has numerous false breaks, so for that reason, it works well.

Cheers

 

[James Austin]

a short at next open,
close to 4.56
may be not such a bad idea!?

am i on my own with this short??

 

[CanOz]

I'm certainly not with you mate, i stood aside on the shorts for now. All my scans could pull up were longs.

I actually changed TMX from a short to a long just before the open favoring the micro triangle to the overbought signal.

Cheers,


CanOz

 

[CanOz]

Here is a nice wedge pattern for tonight.

Cheers,


CanOz

 

[CanOz]

Heres a little micro pattern on a stock i shorted last week. I'll give it another go tonight.

Cheers,


CanOz

 

[MRC & Co]

Can, perhaps zoom out again on those charts, hard to judge a pattern when there is no context (which is really the most important part I think).

Also, on that second last chart, not sure how others do it, but I personally don't like tails or other things passing through my trendlines (as per the wedge). I like them drawn from the extremes as to capture the true trend structure, but each to their own.

 

[CanOz]

BRCD, didnt lose the plot in this last session.

still a short candidate if closing at/below $4.55, entry same,
then down, down, down

we'll see,
not a share trader and know nothing about this stock,
just testing a new system

BRCD got hammered in the last two sessions. Has done a retest of that breakout, well done J.A.

Cheers,


CanOz

 

[CanOz]

Can, perhaps zoom out again on those charts, hard to judge a pattern when there is no context (which is really the most important part I think).

Also, on that second last chart, not sure how others do it, but I personally don't like tails or other things passing through my trendlines (as per the wedge). I like them drawn from the extremes as to capture the true trend structure, but each to their own.

Sure, i zoom in to show the entries and stops that one could use. Perhaps i could show the big picture only.

As far as the tails go, i've drawn it differently, more of a channel.

Not a big thing for me, its cool because I'm not trying to be right, only trying to find a place where i can risk little for larger potential.

Cheers,


CanOz

 

[MRC & Co]

Sure, i zoom in to show the entries and stops that one could use. Perhaps i could show the big picture only.

As far as the tails go, i've drawn it differently, more of a channel.

Not a big thing for me, its cool because I'm not trying to be right, only trying to find a place where i can risk little for larger potential.

Cheers,


CanOz

Yeh, sorry, I asked you to zoom in and then back out. But can see what you mean by the entries now.

Definately, entry with a very tight stop helps a lot (and as I can see, there is a horizontal resistance up there too), only thing in that pattern, is it would be more likely IMO to form a HL and then march on up again, than a wedge or rolling top (as per SPI or S&P daily) would be. Whereby, the targets would be vastly different. But all tradable.

Cheers

 

[CanOz]

Heres a little bearish wedge at resistance...

 

[CanOz]

Yeh, sorry, I asked you to zoom in and then back out. But can see what you mean by the entries now.

only thing in that pattern, is it would be more likely IMO to form a HL and then march on up again, than a wedge or rolling top

Cheers

Did as you said Mr.C, I got in and out pretty quick...at a loss!

Cheers,


CanOz

 

[MRC & Co]

That wedge on the second last chart there, would prob have been a better shorting position to do it after the doji candle hitting the resistance. Assuming that stock is in a downtrend (a classic Bedford set-up from what I am aware).

Last chart, what did I say on that chart? Think I stated I didn't like the pattern, would prefer a rolling top of a legit wedge, not a trend channel? Stop also has to be a comfortable level above a false break area, otherwise a false break will get you out. That, or wait for the false break and then go short!

 

[James Austin]

BRCD got hammered in the last two sessions. Has done a retest of that breakout,

Cheers,


CanOz

just catching up on BRCD now.
looks like it wants to go down again.

is SOLR down to 5.40ish tonight?? = support . . . maybe pull back first, then proceed, i'll keep eye on it!