Shared by
oly_BOWS
This was actually two trades, the first one a quick loss.
Note that on my trading charts, I track the moving averages through the overnight activity. So gap ups like this with lots of overnight action look very different. In this case, the 9ema was tracking along the high end of the opening flag. As it moved back above the 9ema and looked like it was coiling, I took position at 15 with a stop well below the flag candles at 14.85. Unfortunately, I stopped out.
Entry: 15.00
Stop: 14.85
I kept it on radar and another 9ema bounce happened. I still felt the price action was holding up so I took another chance on it. This time I got in at 14.94 (planned 14.95) with a stop at 14.75.
Entry: 14.94 (14.95)
Stop: 14.75
After feedback I have gotten here, especially Nape and Mark, I focused on longer holds. Instead of a quick scalp I held the first half for 2R at 15.35. Then I let the rest ride as long as the trend held. After the move had some legs to it, I used the intraday pullbacks to set the trendline and sold on a break of those.
Unfortunately I can't do this every night but Friday in particular I don't have to work the next morning (I trade from 10:30 PM).
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-08-09 09:47:33 | NOAH | buy | $15.000 | long |
| 2013-08-09 10:05:48 | NOAH | sell | $14.820 | 0 |
| 2013-08-09 10:16:06 | NOAH | buy | $14.940 | long |
| 2013-08-09 11:07:58 | NOAH | sell | $15.350 | long |
| 2013-08-09 12:50:53 | NOAH | sell | $16.240 | 0 |
Comments
oly_BOWS
AnthonyC_BoWS
Very nice scaling out!
As for the tracking overnight, does that mean the 9ema and other moving averages use the premarket trades in calculating the plot points?
Yeah Tony, ToS can show overnight data and I normally set it to do so to evaluate gaps (like is it a single crazy blip premarket or sustained buying pressure). I notice that for charting ToS keeps the MAs calculating during that time so they naturally look different than here. To be honest, I prefer the overnight versions on big opens like this because otherwise it feels like it takes an hour for the 9ema to adjust. This is definitely a matter of taste and I'd be curious what Kunal thinks about it.
Let me show you two examples and how they affected my trading:
https://www.dropbox.com/s/x7lbg8c14dg502f/NAO-0809.png
This is the NAO trade just above but see how I saw the 9 coasting along with the flag setup. I felt way more comfortable than I would with the tradervue chart blind to the overnight. I like the 9 regardless of what other traders are using so I don't mind if my 9 isn't the same. Also it only averages in bars overnight, if you have say 2 or 3 5 minute bars only overnight, that is all that is used for the average, as if overnight was 15 minutes.
Here is another example:
https://www.dropbox.com/s/tzb6due7t8qi9nf/GRPN-0807.png
See how GRPN had very sustained interest overnight. On the open, what looks like a huge gap is really just a nice pullback in a long trend with the overnight data. I took this as a reason to get very agressive and bought into strength on the opening bar, 2nd green bar in the resumption out of that pullback. My GRPN trade in tradervue doesn't seem to make sense until you see what I saw.
That said, this is my approach. It is not as focused as it should be on honing BOWS setups in a more vanilla mindset. I'm getting too fancy, should get back to basics and file this stuff under thoughts for when I'm proven.
markmandy54_BOWS
Thats why I post the snapshot of how it looked at time if my entry as at times it looks so different.
Nape_BOWS
Very good on getting back in and letting the trade ride the moving averages to the upside. Well done! This was great!
Yeah I noticed that Mark and I am finding reviewing your charts extra helpful. I like the autocharts here for clarity and consistency between traders but often the live chart is quit different
kunal00
YO u can use the premarket data. u will get the signals a bit quicker but it can work also. there are a million ways to trade the key is to just use it consistently within ur method. there is nothing wrong with this way either.
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Awesome job getting back in after the shakeout, very hard to do and you nailed it. Great trade.