Thursday, March 27, 2008

Trading The 1 Minute Charts today.


Cliffynator said...

Ok, Stewie.. a little enlightenment, please.

For POT and SKF, it appears that you bought below the EMA as it broke through resistance. Is that correct? Then, you called the tops and sold at good points. How did you decide your exit prices?

With FSLR, how did you decide that it was going to break through resistance but not drop? And again, how did you select sell price?

BTW, I'm going to be reading up on your posts on the Holy Grail trade. It looks interesting.

Stewie said...

Hey Cliff.
Actually these trades were NOT HGs trades. HG trades don't work at all in a choppy tape like we've seen this week. I wanted to trade FLAGS and WEDGES> So, ignore the 20SMA in this case. Just focus on the pattern itself(flag, wedge, triangle). As far as where i was taking profits. To be honest with you, i am known to take profits too soon. So if it spikes like expected or breaks out of the pattern, i am already looking to get out:$0.30-$1.50 if possible. just watching for a reversal at that point. you definitely wanna be out of the trade if the PATTERN FAILS. requires a little more experience to trade this way as you using a lot of gut feel and pattern recognition in the 1 min. time frame. try it on higher timeframes.

upsidetrader said...

if they had a 30 second chart i'm sure you would master it lol

Stewie said...

LOL! upside. bro. i hate this crappy market. I was toying around with the 1 minute charts and actually did pretty well. might be my new weapon for a choppy market. Was buying wedges and flags. there were some very nice short setups too. I cannot wait till the real action comes back.

Blue said...

Would you say that it takes big money to make money on those very tight trading ranges? You're doing 500-1000 shares right?

Stewie said...

like a mad scientist, today was my day in the testing lab. I have been experimenting trading a choppy tape. i found that trading wedges/flags after a stock shows signs of a rally. I was using 50-100 shrs today. I will gradually increase position size once i feel like it is a worthy adventure.

Cliffynator said...

Good stuff, Stewie! I'll brush up on wedges & flags.

By the way, I KNEW these weren't Holy Grail trades. I was just saying that I planned on expanding my knowledge, and you introduced me to the idea of HG trades. So, thanks for the info.

Right now, I can only get to my online broker at night, so I'm forced to trade day-to-day instead of intraday. I definitely look at the longer charts. It's all really the same thing on a different scale, right?

Stewie said...

trading patterns are all the same. patterns and techniques work on all time frames. A 1 min wedge/flag can be played the same way a daily wedge is played. pretty neat how it works.

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