June 20, 2016

TRADING IDEAS and FREE Indicator

Would you like to be able to search for similar setups in MARKET ANALYZER?

Huge volume but no continuation.

If you purchase WVMTS indicator this one goes for free

It is independent of Weis Wave so you can use it separately!

 

 

I will try to go over some setups which i do like to see and trade


P10 and P1010 are my favorite patterns

They can catch those explosive moves which are nice if you trade options

Backtesting also give us some positive results for trading this strategies

It is nice if you involve some fundamentals in such a trading

I found teaching of professor Joel Greenblatt and his Magic formula and professor Aswath Damodaran very interesting and useful

https://www.magicformulainvesting.com/

http://pages.stern.nyu.edu/~adamodar/

You can maybe scan just stocks which you can find on Magic formula investing web site..?!

One example is AGX which made a nice move ( see chart bellow )

You can maybe additionally try to add on everything an DCF ( discounted cash flow) analyzes and buy out of the money calls ( verticals or single) just to figure out where your entry point might be

As i mentioned i was trying to trade at least over 100 DTE ( days till expiration) options

Maybe one can play with this also and tweak it much better than i did

Interesting idea is maybe to try to scan those NCAV stocks too (net current assets value) and see if there is any P10 or P1010 setups which gives a clue that some buying could took place

I could also see that back testing of P10 and P1010 produced nice results when i used different charts…Not just a bar chart  ( please see attached video in Backtesting page)..it was LineBreak

 

Greenblatt


 

Watching this now , some ingredients for explosive move are present

LNKD TWTR

 


 

Trading futures and waiting for the best setup on one of the P alerts 

You input in Market Analyzer several time frames

I did from 2min,5min,10min,12min,15min, 200 ticks, 500ticks,750ticks,1000 ticks, 3000 ticks, 9000 ticks, 6 range , 8 range , 5 range

For example for currency futures and natural gas you can use same retrace number of Weis Wave which will be 0.0003

You can filter it a bit more by trading just a trades where Daily and Weekly trends are aligned…

In just that setup you will get more than 20 alerts per day

Of course you can add all futures ( you need to change retrace number and i can help you with that ) but that will produce a lot of alerts which are hard to follow

Maybe after becoming expert level you can try that . I am still in slow mode 🙂

Attached is a picture how it can look like

You will see many market analyzers open as well as many charts

When i get alert in ALERT window i try to find opened chart ( because there are more than hundredths) in  START TASK MANAGER > Applications …

and look at it that way

2016-06-20_164440

Another thing is to have open chart… on a side and than change its time frame(by clicking on it and if you need 500 ticks just typing 500T)… and change retrace number if necessary

It will be a longer process since every opened Market Analyzer you see with various instruments ( sometimes same but with a different retrace number ) have its own retrace number

2016-06-20_164844

If retrace number information is not clear, that is Weis Wave retrace number ( for currency futures it is 0.0003), for stocks it is 0.1 or 0.05, for CL crude oil i try to track 0.10 , 0.20 and 0.05

Here i attached how that whole setup look like

Currency futures are 0.0003 , except 6J which is 0.00001

Rest of the instruments retrace number i pointed/circled on a picture… with a red color

Place where you can search for info what retrace number on which instrument should be used

da se vidi koji r

Since picture is squeezed you cannot see numbers which do represent time frames

I zoomed one Market Analyzer so it will be clear to you in very next step

time frames and MA

 

So as you can see on very this setup we can track more than 20 instruments on more than 10 time frames each !!!

 

esy

2016-06-21_160648

 


Another trading idea is to search for trades that made pullback on Monthly

So you want to see bars that are above ichimoku cloud but RSI to be between 35 and 45

I could figure out that trades that touched ichimoku cloud on monthly usually bounce back ( if they are in up trend / above ichimoku) very strong

RSI will take you there on time

Than just switch to Daily and watch for P10 or P1010

 


 

Seasonal chart trades

Interesting idea also is to try to check periodically seasonal charts of futures and etc and maybe jump in on time based of P10 or P1010 buying out of the money calls or verticals

Similar thing happened March 2016th

soy

Something is going on with a wheat futures

Seasonally from July , August price starts to rise ( 2, 3 years in a raw that did not happened ) but this time we have some up wave with a volume which is biggest in almost 3 years

Meaning that  trend may change or more selling came in

For an long i would wait price action to act similar as on SOYB chart ( wave volume is just one step in a process, call it just an ALERT)

Adding some fundamentals on Seasonal charts and P alerts could be interesting solution for trading farm products

WEAT (4 Day) 6_25_2013 - 6_24_2016

 

AVID is on the list of Greenblatt’s (Magic formula) stocks

Some insider buying could be seen as well

 

Za Web 3

 

Another interesting strategy is  :

“The longer the period you consider, the more regression to the mean you see. We do, in fact, begin to see a regression to the mean after about five years. This supports the contrarian practice of buying stocks that have been seriously beaten up over the past several years. So, although the performance of stocks with strong one-year positive or negative relative strength tend to keep heading in the same direction, the opposite is true when looking at five-year periods. Stocks that have exhibited five years of strong relative strength—either positive or negative—are usually on the brink of a turnaround.”

“Here, stocks with the worst five-year performance snapped back in the next one-year period, whereas those with the best five-year numbers ended up with far more modest performance in the following year. If you had invested $10,000 on December 31, 1955 in those 50 stocks having the worst five years of relative strength, it would have grown to $17,037,790 at the end of 2003.”

From the book      ” What works on Wall Street”

You can try to find trades in 5-Year Leaders (Percent Declines) which are presented (for free) on www.barchart.com

Lets see few examples:

5y
5y2

P5y

HNR ticker

I found it at 0.85USD and today (28th of November 2016th) it is close to 5USD

Less than 6 months

hnr-daily-2_12_2016-7_8_2016

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