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Soultrader

Market Wizard
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Everything posted by Soultrader

  1. Soultrader
    Hey Antonio, I think you are correct about TPO counts. Initiative buying TPO's are simply TPO's favoring the trend. This would mean more TPO's above the POC for an uptrend and more TPO's below the POC for a downtrend.
  2. Soultrader
    Your welcome
  3. Soultrader
    Very interesting Antonio. Bollinger Bands are useful when volatility is low. Hubert and John Carter has an custom indictor called the TTM Squeeze which is a combination of bollinger bands and keltner channels. When the bollinger bands are inside the ketlner channel, it gives of a first signal. When the bollinger bands then move out of the ketlner channel the indicator will fire of a squeeze signal in either direction. The concept of this is to capture any breakout moves that occur when volatility rises. I have never used this indicator but the concept does make alot of sense.
  4. Soultrader
    The premium is a useful tool to confirm your entry or your current position. A buy progam kicking in when you are long is usually a good confirmation of the trend. I use premium at pivot points as a further confirmation to see if price will hold or fold. CLICK HERE TO VIEW VIDEO Charts created by Tradestation Presented by Traders Laboratory
  5. Soultrader
    Hello awhoa99, I have a trading buddy of mine who is mainly a scalper. From my observation, here is what I can tell you. He trades off the tape 90% of the time using a 3-5 tick stop. So in stocks he would be using a couple cents up to a 5cents. His exits are all scaled out. Because his technique is only trying to capture short term moves, he scales out half at +5, a quarter at +10, and the rest whenever the markets tell him. I do not think the average trader can profit from his methodology. He is super quick on his entries and is right almost 70% of the time. I do think it takes years of tape reading to master this kind of skill.
  6. Soultrader
    Chris, Yes, it makes perfect sense. You are looking for a swing trading method. I am actually starting to pick up swing trading on my own. Try picking up Alan Farley's, Master Swing Trader. I have taken some of his home study courses in the past and found it to be of great help. I learned a great deal of volume and price analysis from him. The problem with simulation or paper trading is that it takes the pyschological and emotional out of trading. In my opinion, our competition is not of other traders. The true competition is yourself. I am the biggest enemy to myself. When you have money on the line, your brain will play many different tricks. It is the abilitiy to control this that will help you succeed as a trader. Paper trading is good to test out a strategy. But you should get in the habit of trading live with real money. If you do not feel like you are ready, trade small. This way you can practice and not lose money that can hurt you financially.
  7. Soultrader
    Here is a chart post of one interesting setup. I usually take this setup but I was short from the value high pivot and did not get in on this play. This is one of my classic setups; after a downtred or uptrend, I watch for TICK's to make a new high or low. Then I will enter a long on the next pullback or a short on the next retracement. In this chart, a new TICK high was made and prices pulled back to the daily pivot. This is a good long signal. Price then lifted towards the value high pivot.
  8. Soultrader
    Jacob, Are you looking to trade long term? It seems to me that from your way of trading, you are looking more on the longer timeframe. Also I do not quite understand your current method of trading. Are you trading strictly of fundamentals and not technicals?
  9. Soultrader
    Hello Robert and welcome to the club. I hope you will find alot of information on this website useful. Feel free to contact me if you have a question regarding the website.
  10. Soultrader
    Pattern failures are common and catch a lot of new traders off guard. That is why I d o not play breakouts. Instead I will play pullbacks out of breakouts. I do not know exactly how breakouts occur in penny stocks. Breakout failures may be more common in penny stocks (no idea if this is the case or not). I have met a trader years ago who traded penny stocks with a system he designed. I honestly had no clue what he was doing most of the time but he was making an average $10k a day. You said you are trading a former midcap stock that is trading at pennies now. There is probably a good reason why it got hammered all the way down. In personally would not touch any of these stocks. The odds of it going back to its past price is low. The only setup I will play when stocks get hammered is to look for a dead cat bounce.
  11. Soultrader
    A 3-I day includes an initiative buying tail, initiative buying TPO's, and initiative buying range extension. What makes this characteristic interesting is that prices tend to open within or above value after a 3-I day. A 3-I day offer traders the opportunity to hold a trade overnight to exit at a profit the next trading day within the initial 90 minutes. In Mind Over Markets, Dalton mentions that 3-I Day offers a high probabilitytrading setup that almost has to be taken. I am curious to know different strategies people may use to trade this setup. What I am most interested is hearing about setups that deal with the following days opening action. Thank you.
  12. Soultrader
    ezduzzit, what exactly is Pivot Magic? I have heard of it but I am not familiar with it. Also, are you mainly a pivot based trader? Do you use market profile in your trading? It looks like you have been testing alot of different methodologies. You may have realized already that indicators are practically useless and relying on them too much will not force one to truly understand the art of trading. I personally have worked with the ADX in the past but I found it better on a daily chart than an intraday 1,3,5 min charts. I use a 233 tick chart. I have not yet traded the Russell yet. Does it mimic the dow or the S&P?
  13. Soultrader
    "... the most important change in my trading career occurred when I learned to DIVORCE MY EGO FROM THE TRADE." A fun and great read about champion trader Martin Buzzy Schwartz. From his early days as a security analyst to becoming a champion trader, the book is packed with good trading wisdom. A book written by a trader for a trader. I particulary found it interesting to read about the edge he was able to gain when trading the S&P's (relationship to bonds). This piece of information forced me to look deeper into my trading methodologies and find an edge on my own. Martin Schwartz advises that all traders find a style that fits him. This is basic common knowledge in trading but one of the most important elements for trading success. What is your trading style? If you can not answer this you probably do not have one yet. I truly enjoyed this book and have read it several times. Every trader needs to find his strength and weaknesses. Instead of entering an arena where others can exploit your weakness, stick to the arena that you are dominant at.
  14. Soultrader
    Try to test it out using whatever stocks you plan to trade. I have found it to useful in my trading because I trade a market that respects pivot points. I have no idea how they are when trading penny stocks. Why are you trading them anyways? You don't find mid and large cap sized stocks attractive? The pivots and midpoints are just a point of reference of support and resistance points. The midpoints I use only when there is great distance between two pivots. I use the midpoints mainly for exiting and not entering. The pp is the most important pivot. The formula says it all: (high+low+close)/3. I like to fade this pivot usually. Some traders will only look for long setups when price is trading above the PP and short setups when price is below the PP.
  15. Soultrader
    I just watched the video for the first 5 minutes but it makes perfect sense. The reason it is appealing to me because all the informtion used in the software is pure info. As you may have noticed, I hate using indicators. But the topgunsoftware uses tools to understand the footprints of market participants. I may end up taking the free trial on their site. I found some tools that I may want to try out. Thank you for posting it out. I am sure alot of market profile traders may want to take a look at the software. Are you currently trading the S&P's? What kind of methodology do you apply to your trading?
  16. Soultrader
    Markets gapped up above the previous days range. It tested the previous days high and found buyers. Price then ended up rotating between the R1 and R2 pivot line. Whats interesting is that the gap up caused the market to trade above the key price level of 11670. This area became support and offered several good long opportunities.
  17. Soultrader
    Glad you like the site. That is a very interesting piece of software. Are you using it for your trading?
  18. Soultrader
    Hello ezduzzit, I first learned how to use market internals after reading some of Linda Raschke's articles, books, and interviews. Then I picked up how to use TICK hook's from Hubert Senters. I think Hubert is great at reading market internals and there is alot one can learn from him. I also use market profile for my trading methodology. One of the main purpose for market profile in my trading is for market understanding. I like to ask questions such as, "What is the market trying to do?", "Is price being accepted within value?", "Is there price rejection outside of value?", etc..... Market profile enables me to understand the bigger picture of the market auction. Then I can narrow it down to my setups. So in my trading, I can not trade without market profile. This is how important market profile is to me. I think having rules to managing your trade is important. Some people may think I tend to cut my profits short but the reason why I scale out so quickly is because I would rather much prefer to eliminate risk. The last quarter position is the main portion where I try to ride it out. The rest is only there to minimize risk and ring the register. Tape reading is something I picked up naturally. I studied Wykcoff, Livermore, and Neill's tape reading tactics. I learned early in my trading career that learning to read tape is a huge advantage in intraday trading. So I spent approx 8 months or so staring at real-time market data with just a candlestick chart and time of sales. I never plotted an indicator and all I did was practice tape reading when price reached a certain level of importance. Tape reading is not easy but if you spend enough time watching it and practicing it you will gradually understand it. I would not say I am perfect in reading tape... there are times I will get faked out. But it has helped me tremendously in timing my entry and exits.
  19. Soultrader
    Very interesting. I will need to study this indicator a little further. Thank you.
  20. Soultrader
    Amazing... works perfectly Antonio. You have no idea how happy I am right now. Thank you very much
  21. Soultrader
    ahh.. I just realized it was my mistake. I use a different formula for the R3 and S3 pivot. I believe the classic formula adds or subtracts R2 and S2. Instead I use the S1 and R1. I totally forgot about this because all I do everyday is plot the numbers into my spreadsheet.
  22. Soultrader
    I changed this bit right here: // Daily Pivot Points Rng = DailyHigh - DailyLow; PP = (DailyHigh + DailyLow + DailyClose) / 3 ; R1 = (2*PP) - DailyLow ; R2 = PP + Rng ; R3 = R1 + Rng; S1 = (2*PP) - DailyHigh ; S2 = PP - Rng ; S3 = S1 - Rng ; I changed the S3 formula from S2 - Rng to S1 - Rng. Also changed the R3 formula to R1 + Rng from R2 + Rng. Did this for the daily and monthly. Regarding the rounding issue.. if it can not be changed it is okay. It is not a big deal since I tend to look at plus or minus 5 pts of every pivot. Also, the code you just gave me to extend the line.... where should I place it in the coding? Thank you
  23. Soultrader
    Bad idea to use pivots when you are playing with penny stocks. You are dealing with the range (high-low) of only 8 cents. Use pivots with normal stocks. For example lets take stock XYZ: High: $51.50 Low: $49.75 Close: $50.50 You should get the following pivots: R3: 53.17 R2: 52.33 R1: 51.42 PP: 50.58 S1: 49.67 S2: 48.83 S3: 47.92 Now, these levels can be used as support and resistance. It is now up to you to decide which levels you want to trade at. Will you fade these levels? Or will you play a breakout of these levels? The PP is probably the most important pivot. Followed by the R1,S2 then R3,S3 and lastly the R2,S2 pivots. If you choose to use midpoints, simply divide the pivots in half. I also use weekly and monthly pivots as well. Just get the weekly high,low,close and the monthly high,low,close and use the same formula. Pivot points are not the holy grail or an exact science. This is one kind of methodology that traders use. Hope this helps. Quick Note: I use a slightly different formula from the classic and woodies. I just updated this page so please take a look: http://www.traderslaboratory.com/forums/derivatives/35-pivot-point-formulas.html?highlight=pivot+points
  24. Soultrader
    Here is a chart for some of the key levels for tomorrow. A couple interesting cluster zones. Also notice both of the levels you mentioned are also a cluster zone. This will be ultra ultra key.
  25. Soultrader
    Hi Antonio, Went through the EL coding and fixed the formulas up a little bit. The R3 and S3 pivots were a little off on the daily and monthly. The weekly was fine. Thank you very much for this. This is going to save me alot of time from now on. I want to make a slight tweak to the code. I remember working with EL a few years back.... even bought the EL bootcamp book which ended being sold on ebay 1 month later. I just can not seem to get the hang of coding. I know they call it "Easy Language", but not too easy for me. The tweak I want is for the lines to extend all the way to the right of my chart. Also, I noticed the lines will plot with the values rounded up. This sort of affects the R3 and S3 pivots by approx 1 point and would like to know if there is anyway to have the lines plotted as it is. Thank you PS: posted a new analysis on the market discussion forum using the new coding.
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