Example play off 30 min chart

Example of a play off 15min chart

REVERSAL TIMES

This is something I found and copied some time back. I am posting just the portion that talks about the so-called reversal times. Worth reading in my view. It is not etched in stone, but is simply one more addition to your arsenal.

I believe it came as a series of emails from pristine.com....
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There are very specific times each day (more like brief periods of time actually) around which stocks, sectors and the general market as a whole consistently experience pronounced price reversals. These Reversal Times, as I like to call them, are generally so uncannily accurate that many of our trading students and subscribers use them as the primary bases for every single one of their micro-trades. In fact, the potency and accuracy of these time frames have compelled us to rely on these specific periods of time (there are eight in total) so completely that we encourage most of our traders in training to only take micro trades if and when the signals to act on them occur at or near one of the eight reversal times. It should be noted that these Reversal Times are intra-day in nature. They serve as an incredibly valuable tool for micro-traders who constantly look to exploit small but tradable price moves within a single trading day. It should also be noted that these time periods do not, or have not as yet, changed. So far, they have stayed the same day in and day out. I truly that what I’m about to reveal to you will help take your intra-day trading skills to higher heights of mastery. Let me now carefully define each one of the reversal time frames, and review their idiosyncrasies and tendencies. For each reversal time is unique and possesses its own individual character.


The Eight Reversal Times Defined and Explained

As mentioned above there are eight specific times around which stocks and the market in general tend to consistently turn or reverse. These Key Reversal Times are as follows: a) 9:50 – 10:10; b) 10:25 – 10:35; c) 11:15 – 11:30; d) 12:00 – 12:15; e) 1:15 – 1:30; f) 2:15 – 2:30; g) 3:00; h) 3:30. All times are stated using Eastern Standard Time. Let’s now delve a little deeper into each one.

1. 9:50 – 10:10 EST. This is the first of the eight reversal times, and it just so happens to be one of the most significant. Frequently, a stock that is moving up sharply into this reversal time zone will either stall or completely reversal and head lower. The same is true for the opposite direction. A stock that is moving down into this reversal time zone will tend to stall or completely turn and head higher. It should be noted that these turns are not always complete reversals, but more often than not, the micro turns that do evolve will offer the astute intra-day trader a decent profit making opportunity, especially if the move preceding the turn was very robust. There is a very good reason why the 9:50 to 10:10 period is one of the more potent reversal times and why it often produces the most abrupt turns in stocks and the general market. It’s because the activity in the first 20 to 30-minutes of trading is often driven by an accumulation of pre-market and overnight orders that have been placed on the books of specialists and market makers or all kinds. An individual stock’s character, or a specific sector’s strength or weakness, or even the broad market’s overall bias is often temporarily affected by the sudden execution of these pre-market orders. In other words, the first 20 to 30-minutes of trading are often “painted,” inadvertently and advertently, by the natural backlog and sudden execution of all the pre-market orders, which are created by the market’s 17.5-hour close. This gives the market and individual stocks a 20 to 30-minute bias (up or down) that often fades, stalls or completely reverses after the backlog of orders has been satisfied. Needless to say, this tendency sets up a tradable opportunity for those who are aware of it. Astute micro traders trained by our firm use several micro time frames (largely 5- and 15-minute charts) to look for stocks that are showing the noticeable signs of change between 9:50 and 10:10. We will cover the signs you need to know how to identify shortly.

2. 10:25 – 10:35 EST. This is the second reversal time and it also represents one of the more potent ones. By the time this period comes along, the market will have already revealed its true bias for the morning, making sound trading signals more reliable. A stock that is moving down into this reversal time zone will also tend to either stall or reverse back to the upside. If a stock is moving up into this time zone, it will often halt its advance or reverse and head lower. Once again, our trained micro traders predominantly use 5- and 15-minutes charts to look for stocks that are showing the signs of change between 10:25 and 10:35 EST.

3. 11:15 – 11:30 EST. This reversal time tends to accomplish two very important things. Firstly, it tends to halt the prevailing trend preceding it, just like all the other reversal periods. For instance, if the E-mini S&P 500 futures contract is rallying strongly into the 11:15 to 11:30 time zone, chances are its advance will either be abruptly halted or a partial to complete reversal of that advance will ensue. We have further found that the stall or reversal that this time zone puts in tends to be enduring in nature. In other words, tops or bottoms made between 11:15 and 11:30 have a tendency to remain in place for several hours. The second thing this reversal time accomplishes is the kick off of the period we commonly refer to as the mid-day doldrums. The mid-day doldrums is an elongated period that spans from 11:15 to 2:15. It represents the most troublesome period for micro-traders because during this extended time zone, many stocks, as well as the market as a whole, often go into a major lull. Follow-through during the doldrums is usually sparse at best and absent at worst, resulting in a higher than normal failure rate in all micro-trades. If there is one period during which we wish we could force traders to take a departure from the markets, it is the mid-day doldrums period. All our traders are encouraged to take a break or at least to trade very lightly during this time. We’ve seen too many traders allow this “black hold” in the market to reclaim their hard won profits from the first part of the day. “Stay away if you can. Trade lightly if you must.” That is our general rule of thumb.

4. 12:00- 12:15 EST. We have found this more minor reversal period to be most important on days in which the majority of the morning has been quiet and/or directionless. Despite the fact that it is in the mid-day doldrums period, we have seen the 12:00 – 12:15 time zone ignite some significant moves in both directions, but only when the preceding period was very quiet. Keep in mind that these 12:00 – 12:15 reversals are far less common than the preceding three reversal periods above.

5. 1:15 – 1:30 EST. This is also one of the more minor reversal periods, but its consistency is very high. We have found the 1:15 to 1:30 reversals in stocks (when they do occur) to be most significant when they coincide with the retest of a prior high or low. For example, lets say XYZ tops out around 11:15. After a pullback, it rallies back to retest the 11:15 between the 1:15 to 1:30 time period. The odds of a sharp pullback are dramatically increased, because the retest of the prior high is coinciding with the 1:15 - 1:30 time period. The retests of prior tops and bottoms that occur in line with the 1:15 to 1:30 Reversal Time can present some very potent trading opportunities.

6. 2:15 – 2:30 EST. Based on what we have discussed previously, this time period puts an end to the mid-day doldrums period. It also serves as a very reliable reversal period for stocks and the general market as a whole. The most important thing to remember about the 2:15 to 2:30 time is that it often marks the precise period when things start heating up again. In other words, the sectors in the market that were exceptionally hot or weak before the mid-day doldrums will often resume their original up or down trends shortly after the 2:15 to 2:30 reversal period. In fact, the tendency for stocks to reverse between 2:15 – 2:30 is so pronounced at times that many of our trained traders regard the period as the market’s second open. Is this always the case? No. But it happens enough to make a special note of it.

7. 3:00 EST. This minor reversal time often brings change because it coincides with the close of the bond market. Bonds often have a pronounced effect on the equity market. When they have served as a nemesis for the market all day, their close at 3:00 will often represent a relief to equity traders, and the market will experience a bullish reaction. If, however, bonds have severed as the underlying support for stocks, meaning the main reason for the bullishness of equities, the closing of the bond market will be construed as the stock market having lost its number one ally. This perception will often result in a more negative reaction. To summarize, once U.S. bonds are out of they way, they can no longer help or harm the market. This often results in stocks or the market taking on a slightly different character. Please note that we have found the 3:00 reversal time to be most valuable is a guide for S&P futures and the corresponding e-mini contracts.

8. 3:30 EST. We have found that this time often reverses any move that happened to be ignited by the prior 3:00 reversal time. For instance, if the market started dropping from 3:00 and continued to do so right into the 3:30 reversal time, the odds would increase that the next short-term move would be up. The same situation occurs in reverse. Keep in mind that the last half hour is one of the most active for many day traders, as it often represents the last substantial flurry of activity.

9. 4:00-4:15 EST. While we did state that there were eight reversal times to be aware of, we do not want you to forget the fact that we are fast approaching a 24-hour trading environment. As post market activity proliferates and exchanges all over the world continue to merge and unite via electronic systems, this period will gradually become more significant, resulting in the ninth reversal time. Even though we are not quite there now, our traders are beginning to take advantage of this developing reversal time via the e-mini futures contracts. If your trading system has the ability to track these contracts after the official close, we encourage that you monitor this time frame carefully. We are betting that its future importance will be significant.

ok so what does that divergence mean?

Divergence

ACOR files 8k few days before blowup

Form 8-K for ACORDA THERAPEUTICS INC


--------------------------------------------------------------------------------

21-Sep-2006

Other Events



Item 8.01 Other Events.
On September 15, 2006 the executive officers and a former member of the Board of Directors of Acorda Therapeutics, Inc. (the "Company") adopted pre-arranged trading plans (each, a "Plan") designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and the Company's policies regarding transactions in the Company's securities. Under Rule 10b5-1, directors, officers and other persons, who are not in possession of material non-public information, may adopt a pre-arranged plan or contract for the sale of Company securities under specified conditions and at specified times. As sales are executed in the future under these Plans, they will be reported in accordance with federal securities laws. Using these Plans, insiders can gradually diversify their investment portfolios, spread stock trades out over an extended period of time to reduce market impact and avoid concerns about transactions occurring at a time when they might possess inside information. This also enables some of these insiders to address short-term tax consequences relating to the lifting of restrictions on shares of restricted common stock held by them.

Each plan has been approved pursuant to the terms of the Company's policies. The plans provide for the sale of shares of common stock of the Company, in some cases including shares obtained upon the exercise of vested stock options.

The Plan adopted by Ron Cohen, President and Chief Executive Officer, provides for the sale of up to a total of 107,593 shares beginning on October 15, 2006 and ending on August 31, 2007. Shares will be sold under the Plan on the open market at prevailing market prices, subject to minimum price thresholds.

The Plan adopted by Andrew R. Blight, Chief Scientific Officer, provides for the sale of up to a total of 60,641 shares beginning on the day following the second full trading day following the release of the Company's third quarter 2006 quarterly earnings report and ending on May 17, 2007. Shares will be sold under the Plan on the open market at prevailing market prices, subject to, in certain cases, minimum price thresholds.

The Plan adopted by Mary Fisher, Chief Operating Officer, provides for the sale of up to a total of 122,500 shares beginning on the day following the second full trading day following the release of the Company's third quarter 2006 quarterly earnings report and ending on October 30, 2007. Shares will be sold under the Plan on the open market at prevailing market prices, subject to, in certain cases, minimum price thresholds.

The Plan adopted by David Lawrence, Chief Financial Officer, provides for the sale of up to a total of 48,171 shares beginning on the day following the second full trading day following the release of the Company's third quarter 2006 quarterly earnings report and ending on May 31, 2007. Shares will be sold under the Plan on the open market at prevailing market prices.

The Plan adopted by Jane Wasman, Executive Vice President, General Counsel and Corporate Secretary, provides for the sale of up to a total of 47,051 shares beginning on the day following the second full trading day following the release of the Company's third quarter 2006 quarterly earnings report and ending on May 31, 2007. Shares will be sold under the Plan on the open market at prevailing market prices, subject to, in certain cases, minimum price thresholds.

The Plan adopted by Mark Pinney, former Chief Financial Officer and former member of the Board of Directors, provides for the sale of up to a total of 158,781 shares beginning on October 16, 2006 and ending on December 15, 2006. Shares will be sold and options exercised under the Plan on the open market at prevailing market prices, subject to minimum price thresholds.

The information in this Item 8.01 of Form 8-K shall not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

Candlestick - Patterns - Pivots

http://candlestickforum.com/PPF/Parameters/16_332_/candlestick.asp

http://www.candlestickshop.com/glossary/

http://www.chartpatterns.com/

http://www.investopedia.com/articles/technical/02/121702.asp

http://www.tradingmarkets.com/.site/daytrading/commentary/traders/11191999-744.cfm?yahoo=1

Earnings

http://biz.yahoo.com/research/earncal/20060925.html

Major Indices Symbol List

DIA Dow Jones Diamonds Index
SPY S&P 500 AMEX Depository Receipts
$COMPX #Nasdaq Composite
$NDX.X #Nasdaq 100
$DJI Dow Jones Industrials
$DJT Dow Jones Transports
$DJU Dow Jones Utilities
$DJC Dow Jones Composite
$INX S&P 500
$OEX S&P 100
$IIX.X Interactive Internet Index
$GIN.X GSTI Internet Index
$SOX.X Philadelphia Semi-Conductor Index
$NF.X Financial Index, CBOE
$JPN.X Japan Index - AMEX
$XOI.X Oil Index - AMEX
$XAU.X Philadelphia Gold and Silver Index
$DRG.X Pharmaceutical Index - AMEX
$VIX.X Volatility Index - derived from the S&P 100
$IUX Russell 2000
$ADV-Q #Nasdaq NMS Advancers
$ADV-S #Nasdaq SmCap Advancers
$ADV-N NYSE Advancers
$ADV-A AMEX Advancers
$DEC-Q #Nasdaq NMS Decliners
$DEC-S #Nasdaq SmCap Decliners
$DEC-N NYSE Decliners
$DEC-A AMEX Decliners
$UNC-Q Nasdaq NMS # of unchanged issues
$UNC-S Nasdaq SmCap # of unchanged issues
$UNC-N NYSE # of unchanged issues
$UNC-A AMEX # of unchanged issues
$TOT-Q Nasdaq NMS # of active symbols
$TOT-S Nasdaq SmCap # of active symbols
$TOT-N NYSE # of active symbols
$TOT-A AMEX # of active symbols
$TICK-Q #Nasdaq Tick
$TICK-N NYSE #uptick-#dntick
$TICK-DJI DowJones Tick
$TRIN-N NYSE #adv/#dec / advVol/decVol -
(#greater than 1=bearish, less than 1=bullish)
$TRIN-Q #Nasdaq Trin
$FVX.X 5 Year Note Index
$TNX.X 10 year Bond Index
$TYX.X 30 year Bond Index
$DJPREM DJ Future Premium
$NDPREM #Nasdaq 100 Future Premium
$SPPREM S&P 500 Future Premium
$TOTVOL-Q #Nasdaq NMS Volume
$TOTVOL-S Nasdaq SmCap Volume
$TOTVOL-N NYSE Volume
$TOTVOL-A AMEX Volume
$DECVOL-Q #Nasdaq NMS Declining Volume
$DECVOL-S #Nasdaq SmCap Declining Volume
$DECVOL-N NYSE Declining Volume
$DECVOL-A AMEX Declining Volume
$ADVVOL-Q #Nasdaq NMS Advancing Volume
$ADVVOL-S #Nasdaq SmCap Advancing Volume
$ADVVOL-N NYSE Advancing Volume
$ADVVOL-A AMEX Advancing Volume

Futures

December 2001
/EST1 S&P E-Mini (Market and Evening Sessions)
/#SPZ1 S&P 500 (Market Session)
/#SPT1 S&P 500 (Evening Session)
/#NQT1 Nasdaq E-Mini (Market and Evening Sessions)
/#NDZ1 Nasdaq 100 (Market Session)
/#NDT1 Nasdaq 100 (Evening Session)
/#DJZ1 Dow Jones Industrial Average (Market Session)
/#ZJZ1 Dow Jones Industrial Average (European Exchange Session)
/#USZ1 Bond

March 2002
/#ESC2 S&P E-Mini (Market and Evening Sessions)
/#SPH2 S&P 500 (Market Session)
/#SPC2 S&P 500 (Evening Session)
/#NQC2 Nasdaq E-Mini (Market and Evening Sessions)
/#NDH2 Nasdaq 100 (Market Session)
/#NDC2 Nasdaq 100 (Evening Session)
/#DJH2 Dow Jones Industrial Average (Market Session)
/#ZJH2 Dow Jones Industrial Average (European Exchange Session)
/#USH2 Bond

June 2002
/#ESI2 S&P E-Mini (Market and Evening Sessions)
/#SPM2 S&P 500 (Market Session)
/#SPI2 S&P 500 (Evening Session)
/#NQI2 Nasdaq E-Mini (Market and Evening Sessions)
/#NDM2 Nasdaq 100 (Market Session)
/#NDI2 Nasdaq 100 (Evening Session)
/#DJM2 Dow Jones Industrial Average (Market Session)
/#ZDM2 Dow Jones Industrial Average (European Exchange Session)
/#USM2 Bond

Trading Floor Jargon

http://daytrading.about.com/cs/dictionaries/l/bl_jargon.htm

1-2-3 Reversal Patterns
The next important building block is made up of MSL’s and MSH’s. Just as a MSL is the first sign of a potential reversal in prices, the combination of a MSL, a MSH, then a MSL that is higher than the first one, is a confirmation pattern that a down trend has reversed into an up trend.

Market Structure High (MSH)
The opposite of a MSL is a Market Structure High (MSH). It is the first sign of a potential reversal in prices. A MSH is usually made up of three price bars (or candles): A high, a higher high, and then a lower high. The “High” is measured from the actual high of the bar, not the closing price.

Again, the MSH is triggered short when prices move below the low of the third bar in the MSH pattern

MSL con't
A MSL can also be made up of two bars or candles when they both have the same low. This is known as a double bottom, as shown in Figure 2. Again, ideally the first bar of the double bottom will be a down bar, and the second will be an up bar. In this example, the second is a doji (open and close were the same), which is neutral.

Market Structure Low (MSL)
A Market Structure Low (MSL) is the first sign of a potential reversal in prices from a downtrend to an up trend. It is usually made up of three price bars (or candles): A low, a lower low, and then a higher low. The “Low” is measured from the actual low of the candle, not the closing price. Ideally, as shown in Figure1, the Low and Lower Low will both be “down” bars (where the closing price is lower than the open price), whereas the third bar, the Higher Low, will be an up bar.

The MSL is actually triggered when prices subsequently move above the high of the third candle, as shown by the dotted line. Of course, it is dangerous to enter a long trade simply on the trigger of a MSL.

RBAK "Bull Flag Consolidations"...

On that run from $5.50 to $24.50

This chart doesn't encompass that entire time frame of that run, so look at the chart below this one to see that it did five of these consolidation patterns during the entire run...



The Buy Signal comes when it breaks above the upper green line with increasing volume...

The POWER of the 15/50 Day Moving Average Crossover:

Also known as the "Silver Cross"...
The 50/200DMA Crossover is called the "Golden Cross"...

Hi! 'macdrsirules'...

Welcome to the board...It's nice to see you here...How have you been?...

There are some interesting posts here from 'HACK'...'landm19'...and 'iconoclassic'...

Boardmarked. Great stuff guys.

Multicollinearity is a Statistical Term...

For a problem that is common in technical analysis. That is, when one unknowingly uses the same type of information more than once. Analysts need to be careful and not utilize technical indicators that reveal the same type of information:

http://stockcharts.com/education/TradingStrategies/Multicollinearity.html

Here is a lesson I created on Chart Patterns...

That I use for Swing Trading, and even Day Trading...

http://www.market-master.net/AngelaChartPatterns.html

It's from my website:

http://www.market-master.net

And is usually only accessed from the "Members Log-In" box...Enjoy!...

Swing Trader
Updated: 13-Sep-06 16:12 ET

Managing Winning Positions

Diverting from my usually market commentary/analysis as a few recent emails asked how I manage positions and risk. For starters, there are 3 cardinal rules of trading that I ask myself before entering each trade and I suggest you do the same.

(1) Is the trend up or down? Usually identified by a simple trendline, but I also use the 10, 20, 50 and 200-day moving averages.

(2) Am I going to take a trade "with" or "against" the trend? This is the most important question to answer. It defines whether or not you are bottom-picking or picking a top. Counter-trend trades carry more risk since you're betting on a reversal of current momentum. I typically will trade 50% of normal position size on "counter-trend" trades. If you're new to trading, you'll likely want to avoid these types of trades until you feel very comfortable in doing so.

(3) Where's my risk? No trade should ever be entered without knowing where you will take a loss. I typically have a 1.50 pt stop on most trades, depending on volatility in the name and how far price is away from a significant support/resistance.

As for profit-taking, I try to avoid specific targets as much as possible. My personal experience is if you have a target in mind, you'll wind up either failing to take profits because that target is never met or you wind up taking profits too early as price continues well beyond that target. The solution to this problem is focusing on ideal entry points and taking Partial profits. Since I usually risk 1.50 pts, I will typically consider locking in profits when gains fall between 1.50 - 3.00 pts. After a partial is taken, I'll then move the initial stop-loss of 1.50 to the breakeven level. That way if price reverses against my position and comes back to breakeven, I at least got some profits in the bank. If price starts to exceed the 3.00 profit zone, I will then consider trailing the balance stop along the 10-or 20-day ma's, depending on the momentum. Parabolic moves and overnight gaps warrant moving stops to previous lows and highs.

Excellent post!...And a great idea for a board...

I've BoardMarked this one, and plan to read the posts, and post here from time to time...

Wow !!Must read for traders

From another board poster teapeebubbles

Seven Habits of Ineffective Traders
Friday November 5, 1:03 pm ET
By Ken Wolff, RealMoney.com Contributor


Recently, a couple of people I know packed up and quit trading after struggling for a long time to hold their heads above water. They didn't make it.
This isn't unusual, of course. This profession has a high failure rate. But it frustrated me.


It frustrated me because I could see potential in them. I don't believe you have to be particularly talented or intelligent to be a successful trader, but these people seemed to have a grasp on the market and the love of trading that's necessary.

They had the tools, the knowledge, the time and the funds. It also frustrated me because I could see the pressure they were under that contributed to their failures. Most of all, though, it frustrated me because I could clearly see what they were doing wrong, but they couldn't stop repeating the same mistakes.

This happens a lot. I see a lot of people making the same mistakes. So I thought I'd share my list of the seven most frustrating things that struggling traders do.

1. When people won't do their own homework. Too many people want to make money, but aren't willing to put the time in and do what it takes. I love answering questions, and I have a passion to help people learn, but when I notice someone asking the same questions over and over, and they are basic questions that anyone could Google, and gave it 30 seconds worth of effort, I know that person is lazy and probably won't make it.

You want to know what makes successful traders? People who glue their butts to their chairs. Look at their computer desks and you're likely to see lots of coffee rings and crumbs. You get out of something only what you put into it. If you aren't willing to take notes, take some initiative, keep a journal and spend a lot of time watching stocks, I don't see much hope for you as a trader.

2. When people can't explain their reasoning for a trade. If your reason for entering a trade is something vague like, "I thought I saw buyers, and last week it had news, and I dunno, it just looked good," then you don't belong in that trade! People like this usually have no clearly conceived, written, organized trading strategy because they are lazy. They are doomed to failure.

If you have no solid reason for a trade, you will have no confidence in it. You will wind up mistiming, misjudging, fumbling and losing. Here's a quote from my partner Phil Rosten, who is a brilliant technician:


I think the most important thing to do is to develop a system that you have confidence in. You will get nowhere if you are second-guessing what you are doing. When the market is open, you need to know what you are doing, and why you are doing it, without thinking too much about it. If you start thinking too much about what you are doing or second-guessing yourself, you will quickly get taken out of the game.
Believe it or not, it doesn't matter much what your reason is, as long as you are consistent with that reasoning. But you'd better have a reason.

3. When people make things more complicated than they need to be. Let me give you an example. One of the leaders in my chat room finally unveiled a new trading system he had developed after more than a year of extensive testing. The system works just as it is. It isn't perfect (no trading system will be 100%), but it is highly profitable.

People's initial reactions were interesting. Instead of saying, "Wow, great. Let me give it a try," a common first response was, "I wonder if it would work even better if we changed this and that, and instead of a 15-day moving average we used a 10-day moving average," and on and on. Before they even tried or understood the system, before ever becoming profitable and successful with it, they immediately set about trying to improve it.

Maybe it's human nature. We love trying to reinvent the wheel. Many of us see trading as a puzzle. If we could just find that solution or formula that no one else has thought of yet, we would be rich and happy. A lot of people think that the more indicators they pile on, the better their trading results will be. So they wind up with analysis paralysis, unprofitable and frustrated, convinced that trading is an unwinnable gamble.

I can't say this enough: What matters is not the system itself, but what you do with the system -- your discipline to use it and keep stops. You won't find a system that always works, so you'd better limit those losses. Two percent of your trades can easily wipe out 98% of your gains if you can't keep stops.

4. When people enter a trade for a good reason, then lose their nerve and exit too soon. This is a lot like walking across a log over a river. If you keep focused on your goal, you will get to the other side. You know how to walk a straight line, and you would have no problems if the log was on the ground. But once you are out there, if you start second-guessing yourself and looking down at the rocks below, you will fall. Too often emotions set in and sabotage good trades.

If you have a reason, stick with it. Stay in the trade until your target is reached, you have an exit signal, or the reason for your entry is no longer valid.

5. When people hesitate, or follow others, and enter a trade too late. I understand traders' lack of confidence and I can empathize because I've been there. If they don't get a grip on it, though, it will be their downfall. Calls are great and gurus are great, but if you follow, you will always be late. You need to learn to rely on your own reasoning. Otherwise you will be too slow and you'll become fish bait.

Inexperience is often the reason for this, and that will take care of itself with time. That's why I recommend starting with small shares until you gain confidence in your system and your ability to keep stops. But this problem frequently has to do with deeper emotions, pressures and self-esteem problems that may not go away as easily.

This is hard stuff because it's all about confidence. When you are under pressure from a spouse who disapproves of your trading, or under pressure to pay bills, etc., you are working under an enormous amount of fear and pressure. And that is automatically going to cause hesitation. I know that's a hard situation.

But I tell you, if you don't get that under control and learn to trade like you don't need the money -- with control and a system, leaving out emotion -- you are not going to make it. You must find a way to ease that pressure. Get a part-time job if things are that rough and you still believe trading is the job for you. If you cut back and trade a couple of days a week without the pressure, you'll probably trade better for it and wind up making more money than you did trading five days a week under pressure. I've seen it happen many times.

6. When people will not contemplate the real reasons for their failures. I don't know how many times I have heard this: "The market was tough today. I had one good early trade and then gave it all back in the afternoon in a few bad trades."

Let's be honest here. The market wasn't making you do those stupid later trades. It was you. Don't blame it on the market when in reality you were chasing longs all day when the market was tanking.

Then people will say something like "I need help with risk management," "I need help learning to find good entries," "I need help learning executions" or some other topic not really related to their true mistake. What they need instead is a dose of self-restraint and some personal accountability. They need to stop making trades out of boredom, frustration, regret or any other reason other than "it met my trading criteria." They also need to be honest about these criteria and not stretch things into "well, it kind of meets my criteria -- if I look at it cross-eyed."

I know this is hard. It's tough to sit there all day and stare at these numbers, especially when things are slow and there have been no good trading opportunities that day. It's like fishing. Fishing can be really boring. But if you aren't sitting there waiting with your hook in the water, you won't catch anything when the big fish come by. And it won't help if you jump in the water every time you see a ripple, trying to convince yourself you had a bite.

7. A defeatist attitude, especially in me. The potential in our lives far exceeds what we ordinarily imagine. Too often we put limitations on ourselves with Eeyore-like thinking. We say "I can't do this" or "I am just not smart enough" or "I'm just unlucky." In doing so, we fail to challenge ourselves and develop new potential because we've lost faith in ourselves.

We are like circus elephants tied with small weak chains to a stake, believing we could never get free, unaware of our own strength. We possess tremendous potential, but if we develop the bad habit of convincing ourselves that our potential is limited, we will not actively challenge ourselves and grow. Like the elephant, we will be held captive by our own beliefs.

If you have a defeatist attitude, you've already lost. So let's keep a positive mindset and try to see each mistake as a stepping stone to growth.

Traders must have a certain selection of stocks they trade and look at the charts of Daily ,Monthly ,Weekly and 60min. Before making a trade in any stock even a day trade take a look at the above charts frist. Have an idea where the stock is you are trading. Sometimes by looking at a chart of a stock in the news a daytrade can become a postion trade for even better gains.

Same with Earnings plays or upgraded or downgraded stocks look at the charts at different time frames.

If your a trader and don't have a good charting service you are doomed for failure.

Powertrend stocks con't.


We want to play earnings blowout stocks



Look for

The angle of ascent---the pace---the velocity

Preferably more than 45 degrees---NOT a straight up spike but an angled ascent

With nice 5 10 20 emas headed up.



We want the stock to be riding that 5 ema

Use the 5 and 13 min charts (a 15 min chart will work if you don’t have 13)



These stocks will push up the upper bb



We want a steep uptrend on both time frames.

We want to see new highs each candle

We want to see the stock move right up to the pivots I post.

A pivot is a decision point---an area of resistance or support. A price where the stock will pause and then decide to go on up or retrace.


Each pivot is a decision point you can enter on any break higher. You can use the previous pivot as support. It can go back and retest the last pivot---it it braks that ---- your stop is there.

Remember---the stock surges to the pivot, then pauses to test it---if no buyers step in, then we retrace. The steeper it gets, the sooner it will find the top. We don’t want huge spike, just surges to the next pivot test then surge

We want new highs.



These methods are for the power trends so we use the pivots as entry/exit points and stops.



We expect new highs. We expect touches back to the 5 ema

The basic power move is over by the time the stock touches the 20 ema

These stocks use the 5ema for support.

Once in a while they will retrace down to the 10 ema after the momentum has waned



We want to play these stocks early if possible. In the first 1 to 1.5 hours when they have the most volume. Touch of the 5ema is a good entry. We do not want to see a candle close below that 5ema. If the other candles going up have been all green the 5 will be the leader—5 min chart---13 min chart will confirm.

This basic formation needs to be recognized—it tells you the stock is trending strongly. The big money is taking these stocks up, they are accumulating these winners, they are buying. There are large orders to buy.



We want to ride this trend up. You do not have to buy 1000 shares to play. It is moving up fast; you are scared; buy fewer shares.

ETS rule for trader ENTRY TARGET STOP On each trade do not just blindly jump in with no plan.

Power Trend Stocks

It's a particular chart formation that tells you that this stock is in play and is trending up strongly. We are looking for stocks that have a reason to move an upgrade, news, blowout earnings these are stocks that offer more than just a quick scalp. we are looking for a trend day up for theseplays regardless what the futs are doing.

Power Trends work in both directions

U must pay attention to after hours earnings announcements. these will be in play the next day

We are looking for a special formation on the chart at the open At the open these plays are typically gapping up at the open because there is a lot of interest in them.

2 most important things we look for volume and velocity

volume tells you their is major interest in this stock
velocity tells you it is moving quickly in price

The chart gives you the velocity by the angle of ascent.

You must put a 5ema 10ema 20ema on each chart and bollinger bands 20ma and 2 sd.

we want a steep angle of ascent these plays are done off a 5min and 13min charts. We want a steep angle of ascent because it shows major urgency to own or sell a short play. Very important concept.

We do not want it straight up vertical Straight up is unsustainable too far too fast Not what we want.

These plays are gonna last all day typically not just a few minutes. Nothing can sustain straight up very long those moves are good only for scalps and u get nailed if you don't have good execution .

The purpose of playing these power trends is to make more than a scalp. You can play lighter shares with less risk and more net results.

For a power trend the 20ema is never flat or horizontal it must be rising steep better than 45 degrees usually this shows power in the stock At the open if the stock gaps p huge then it will be very far above its 5 10 20 emasWhat happens in this case It will form a flag

The stock will hover near the top of that first huge candle and wait for the ema's to catch up.
Or it will retrace slightly down to meet the emas movin up. Under these conditions we wait to see if the stck can take out the hod. Flags can occur on any time frame. I follow the 5min and 13 min for this.

We want the 5 and 13 min looking the same the same power formation steeep angle up using the 5ema for support. The 5min chart can move around more than the 13min so we look to the 13min for guidance. If the 13 min is not in power trend formation not good. We want the charts to look similar in regards to the 5 and 10ema support.

Number 1 rule for a trader Never stop learning you stop learning you fade away..

20 GOLDEN RULES FOR TRADERS ( more from Hard Edge )
ttp://www.siliconinvestor.com/readmsg.aspx?msgid=22531795

* The Rules usually rule ,lol .....there's rules in life son , just going to have to get used to it....
( my father used to say) but there's also the gift of gut & instinct...but that usually comes from the following many of the rules first and being able to operate from already previously installed and learned disciplined habits from experience & practice .


Want to trade successfully? Just choose the good positions and avoid the bad ones. Poor trade selection takes a heavy toll as it bleeds your confidence and wallet. You face many crossroads during each market day. Without a system of discipline for your decision-making, impulse and emotion will undermine skills as you chase the wrong stocks at the worst times.

Many short-term players view trading as a form of gambling. Without planning or discipline, they throw money at the market. The occasional big score reinforces this easy money attitude but sets them up for ultimate failure. Without defensive rules, insiders easily feed off these losers and send them off to other hobbies.

Technical Analysis teaches traders to execute positions based on numbers, time and volume.This discipline forces traders to distance themselves from reckless gambling behavior. Through detached execution and solid risk management, short-term trading finally "works".

Markets echo similar patterns over and over again. The science of trend allows you to build systematic rules to play these repeating formations and avoid the chase:


1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming.

2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.

3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool.

4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.

5. Don't buy up into a major moving average or sell down into one. See #3.

6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.

7. Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can.

8. Trends test the point of last support/resistance. Enter here even if it hurts.

9. Trade with the TICK not against it. Don't be a hero. Go with the money flow.

10. If you have to look, it isn't there. Forget your college degree and trust your instincts.

11. Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.

12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel.

13. Avoid the open. They see YOU coming sucker

14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.

15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.

16. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.

17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.

18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.

19. Bottoms take longer to form than tops. Greed acts more quickly than fear and causes stocks to drop from their own weight.

20. Beat the crowd in and out the door. You have to take their money before they take yours, period.


http://www.hardrightedge.com/tw.htm

MASTERING REWARD/RISK (15 Tips)

http://hardrightedge.com/wheel/hrerisk.htm

Most traders ignore reward/risk ratios, hoping that luck will save them when things start to go bad.

This is probably the main reason so many of them are destined to fail. It's really dumb when you think about it, because reward/risk is the easiest way to get a definable edge on the market house.

The reward/risk equation builds a safety net around your open positions. It's designed to tell you how much can be won, or lost, on each trade you take. The secondary purpose is to remove emotion so you can focus squarely on the cold, hard numbers.

Let's look at 15 ways that reward/risk will improve your trading performance.

1. Every setup carries a directional probability that reflects a specific pattern. Always execute positions in the highest-odds direction. Exit your trades when a price fails to respond according to your expectations.

2. Every setup has a price level that violates the pattern. Only take trades where price needs to move a short distance to hit this "risk target." Look the other way and find the "reward target" at the next support or resistance level. Trade positions with the highest reward target to risk target ratios.

3. Markets move in trend and countertrend waves. Many traders panic during countertrends and exit good positions out of fear. After every trend in your favor, decide how much you're willing to give back when things turn against you.

4. What you don't see will hurt you. Back up and look for past highs and lows your trade must pass through to get to the reward target. Each price level will present an obstacle that must be overcome.

5. Time impacts reward/risk as efficiently as price. Choose a holding period based on the distance from your entry to the reward target. Then use price and time for stop-loss management. Also use time to exit trades even when price stops haven't been hit.

6. Forgo marginal positions and wait for the best opportunities. Prepare to experience long periods of boredom between frantic surges of concentration. Expect to stand aside, wait and watch when the markets have nothing to offer.

7. Good setups come in various shades of gray. Analyze conflicting information and jump in when enough ducks line up in a row. Often the best thing to do is calculate how much you'll lose if you're wrong, and then take the trade.

8. Careful stock selection controls risk better than any stop-loss system. Realize that standing aside requires as much deliberation as an entry or an exit, and must be considered on every setup.

9. Every trader has a different risk tolerance. Follow your natural tendencies rather than chasing the crowd. If you can't sleep at night, you're trading over your head and need to cut your risk.

10. Never enter a position without knowing the exit. Trading is never a buy-and-hold exercise. Define your exit price in advance, and then stick to it when the stock gets there.

11. Information doesn't equal profit. Charts evolve slowly from one setup to the next. In between, they emit noise in which elements of risk and reward conflict with each other.

12. Don't be fooled by beginner's luck. Trading longevity requires strict self-discipline. It's easy to make money for short periods of time. The markets will take back every penny until you develop a sound risk-management plan.

13. Enter positions at low risk and exit them at high risk. This often parallels to buying at support and selling at resistance, but it can also be used to trade momentum with safety and precision.

14. Look to exit in wild times in order to increase your reward. Wait for price acceleration and feed your position into the hungry hands of other traders just as the price pushes into a high-risk zone.

15. Manage risk on both sides of the trade. Focus on optimizing entry and exit points and specialize in single, direct price waves. Remember that the execution of low-risk entries into bad positions allows more flexibility than high-risk entries into good positions.

http://hardrightedge.com/wheel/hrerisk.htm

Great idea for a board, hack...hope you are having a wonderful holiday weekend:)

Trading Rules
1…Who are you??? What are you??? And what do you want to accomplish today…Are you day trading, swing trading or what. Scalp mode today?? Know what it means to scalp a trade?? Do not be in the middle here, one way or the other. If you have a doubt about what you’re going to do with the stock your trading, you’ll make mistakes. Should I keep it for a day or two? Should I scalp it? Should I trail a stop? Indecision will destroy the trade right then and there!



2…How much is enough money to make today??? Set that number first. A must. Look the biggest problem everyone has is when to sell. We all have this ongoing battle with Mrs. Greed. She sits there on our shoulder opposite Mr. Fear. They are eyeball to eyeball, and WE are in the middle of this battle. You must have it pre set in your mind as to when to exit. And then just do it, either by getting stopped out for a gain, or selling “too soon”. I always try to sell to soon as the stocks running up. Now how much money have you placed in your acct. to fund this business of yours? Enough??? Tight money will kill you. This part alone could sabotage your entire game plan, for the day or for your trading life.



3…What is your predetermined rule for entries and exits if you get into a trade for the day…Do you understand completely Support and Resistance’s on any chart any time frame, and do you have the ability to draw lines on your real time charts to help you SEE these area’s and then SET Alerts intraday to get you in or out??



4…Do you have the correct hardware, software, and real time charting service, Online Direct Access Broker. Without it, don’t even think about coming to the dance. How about Cable modem, dsl line, etc, how about a back up computer all set up and running in case yours conchs out? What is your back up?



5…Determine what a “Trend Day up or down is, and can you recognize this event? Do you have a complete working knowledge of Candlesticks and or Point and Figure Charting techniques…and what tells you what kind of a day it is, are you fighting the trend? Are you trading the long side when we are falling like a stone that day?



6…. Do you follow and understand the futures markets the S&P’s and NQ’s? Can you understand what they are telling you, how about Tick and Trin, got those down pat?. Do you read volume and watch Level II…can you determine buying and selling pressure..



7…Can you spot a “Divergence in your charts and indices…what does it mean to you while day trading…How can you take advantage of these divergences that others have NO clue about to your advantage…reading between the lines…using solid techniques at all times…



8…How do you have your charts set up for real time data feeds? What moving averages are you using, what time frames do you use…and what if any indicators or oscillators are you using in conjunction with your charts…



9…STOPS!!! Are you using hard stops or mental stops, and do you use them automatically? Do you know where to place them? How about the gaps each day, what are you doing to the morning novice gaps?? Chasing them or selling them…



10…And then what about your general make up…how do you handle things emotionally…can you control those demons on your shoulders, Mr. Fear and Mrs. Greed!!! Are you screaming at the screen, cursing and throwing things, pounding your fists on the keyboard? What are you doing to combat all theses internal emotional problems…because with everything I have written about in this article, …without absolute control over your trading, over your emotions, your D-O-A.

From Jerry Olson's site.

Naked Short Selling Explained for the IBOX

Wonder if management have read the book on "Cellar Boxing"?
“CELLAR BOXING”

There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “Cellar boxing” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. This level is appropriately referred to as “the cellar”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations.

“Cellar boxing” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent.

The unique aspect of needing an arbitrary “cellar” level is that the lowest possible incremental gain above this cellar level represents a 100% spread available to MMs making a market in these securities. When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread.

In order to participate in “cellar boxing”, the MMs first need to pummel the price per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price.

In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser.

An interesting phenomenon occurs at these "cellar" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. What tends to happen is that every time the share price tries to get off of the cellar floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market.


Once a given micro cap corporation is “boxed in the cellar” it doesn’t have a whole lot of options to climb its way out of the cellar. One obvious option would be for it to reverse split its way out of the cellar but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level.

Another option would be to organize a sustained buying effort and muscle your way out of the cellar but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective.

At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers.

At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the cellar, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense.

As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell.

What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on.

The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “cellar boxing” phase. The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it.

A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "Cellar boxing" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein.

For those hoping for no rate increase next Tuesday.
There have been 12 periods in the last 53 years where the Fed has engaged in a series of rate hikes. In 10 of those instances the S&P 500 subsequently declined AFTER the final rate increase, with an average drop of 22% to the eventual bottom. On average the market bottom occurred 10 months after the end of tightening. Importantly, an economic recession followed in 9 of the last 12 cases. On average the economy did not peak until 4 months after the last rate increase, although in two instances the peak actually occurred first, meaning that the last tightening was implemented after the recession started, but before the Fed was even aware of it.

IBD article on CASH.

IBD...Avoid The Daily Whipsaw By Sitting In Cash
Friday August 4, 7:00 pm ET
Trang Ho


Sometimes the best thing an investor or trader can do is nothing.
It's hard enough to make money in a bear market. It's also tough not to lose it. Three out of every four stocks follow the broad market's direction. Thus when the market falls into a downtrend, it's important to cut your losses, pocket your profits and move toward cash.

Sitting in cash lets you free yourself from the daily market noise. You can use the time to reflect, go over past trading mistakes and sharpen your skills.

Despite what some so-called market gurus say, your probability of finding a gem that bucks the downtrend is very small. Rather than finding a needle in a haystack, it's better to just go for the haystack.

If you are chasing breakouts or getting in just to be active, you could be subjecting yourself to a lot of volatility. It could eventually whittle away your money and, even worse, your mental health and confidence.

If you wait patiently, you can be prepared to jump in when the next opportunity arrives. Your chance of finding winners grows dramatically in an uptrend.

Stocks have managed some gains in the past couple of weeks. But we've yet to see the market follow through, then build on and sustain a new round of gains. Until that happens, further patience is advised.

It's best to wait for the market to confirm a new uptrend with a follow-through day, when one or more of the major indexes makes a substantial price gain on heavier volume than the day before.

However, not all follow-through days confirm a new uptrend. You want to see the indexes keep climbing, with leading stocks breaking out of bases and surging to new highs as well.

When leading stocks such as Goldcorp (NYSE:GG - News) start breaking down after huge run-ups, that often signals a shift in market direction.

Goldcorp topped on May 11 along with the major indexes . It had vaulted 124% from the 18.60 buy point of its long base in September.

The stock plunged 42% from its peak to its June 13 trough . It's now trying to rally off its 200-day average for the second time. But there's a bearish divergence: price gains in lighter volume .

How important are Moving Averages - DAILY CHART
SETTINGS

AMGN had a good run from 63.00 to 71.00 in a short period of time. Once it broke through the 200 day moving average the stock hesitated. Shorters came into the stock. After being above the 200 day for 2 days the stock started to drop. The 200 Day proved that it could not support AMGN. The stock fell all the way to the 20 day moving average, then bounced and settled right on the 105 day moving average.

Another Great Post By: landm19
RANGES

Lets say the OIH was trading at 30.00 take away the 100.00 So the RANGE for this OIH would be 30.00 to 40.00 the mid point between 30.00 and 40.00 is 35.00 note the high of the day 135.10 or for our example 35.10 so at the mid pivot it found resistance. Now if it takes out 35.00 or 135.00 that becomes support. and it has a chance to move up to 140.00 or 40.00. So in this example 135.00 35.00 is key pivot. Now if 130.00 or 30.00 breaks we enter a new range 30.00 to 20.00 RANGE with 25.00 or 125.00 becomes a key pivot. 125.00 holds we go back up to 130.00 125.00 breaks chances are OIH goes to 120.00... Stocks move in RANGES 10-20 20-30 30.00-40.00 and so on... with the middle being an important pivot. Also another key pivot is 30.00-35.00 with the middle being 32.50 another importand pivot hope this helps


http://www.investorshub.com/boards/read_msg.asp?Message_id=12213548&txt2find=range

Another Great Post By: landm19
RANGES
PIVOT POINTS

For those that would like to learn Stocks work in RANGES 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 between those ranges are pivots for example 50-60 would have key pivots of 50.00 , 60.00 and 55.00 which is the mid piv of the range also if you take 55.00 plus 50.00 and divide by 2 you get another key pivot 52.50 where did AAPL stop yesterday 52.50....

Ranges and mid pivots very important.

West keeps saying AAPL to 44.00 could be but 50.00 has to break first to put it in a new range 40-50 mid piv would be 45.00 and so on etc.....

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Another Great Post By: landm19
PIVOT POINTS

Mid pivot huh.. what the hell is that ?? Lets look at AAPL Friday the high for the day was 68.61 the low for the day was 64.96 the mid point for the day was 66.79 or 66.75 to round it off... When a stock during the day is above the mid pivot it's bullish when below its bearish... Of course if a stock makes a new high or low during the day you must do the math over.. I do it around 10:15am est and I draw a line on my 1 min chart.. and I have the mid pivot of the daily range... Just another helper along the way...

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Another Great Post By: landm19
WATCHLISTS

What to watch during the day me I watch the ES fut the NQ futs the YM futs the QQQQ the SOX the INDU and my stocks I'm trading.. I have 5 monitors Okay you got limited space what do you trade ? If you trade tech stocks you should have at least the QQQQ up on a 60min chart and a 5min chart or 1min chart to watch the trend its in. If you don't have the YM futs have the Dow up there somewhere... or have the NDX or SPX to give you and idea whats going on... On a watch list have the TRIN and the TRINQ they give you and indication of what type of day it will be $TRIN $TRINQ for some

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Another Great Post By: landm19
RANGES

Last time I'm posting this... Guys on this board are going to post numbers This stock is going to such and such... Who the "F" knows no oneeeeeeeeeeeeeeee What I do know is stocks work in RANGES does it always work no does anything always work nooooooooooooo..... But most of the time it does...

RANGES

10-20 20-30 30-40 40-50 50-60 70-80 80-90 90-100

Oh ISRG going to 70.00 oh ISRG going to 60.00 well has it nooooooooooooooooo.............. why cause it never even left the 90.00 to 100.00 RANGE.... First things have to happen first So all the yelling is BS to me.... I watch what RANGE the stock is in it will tell me what it wants to do...

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CLUSTERS

support and resistance...

idea of finding CLUSTERS of
support and resistance.

This is a really powerful technique, and one that is too
little used. Of course, many top traders and people on the
trading floors know all about this. But too many of your
average traders just aren't using clusters.

This is the deal - a single support or resistance number is
just that - a single number. It might or might not prove
significant. But when you can find two, three, or four numbers
that are grouped together in a tight area... then you have
something. That is a cluster.

And the more numbers coming together in a cluster, the more
you can take that cluster to the bank.

For instance, say you are trading a stock that is trading
around 32. You find a resistance number at 33.25. Then you
keep looking, maybe on a different time frame or with
different technique, and you find additional resistance at
33.20... and another resistance level at 33.28.

Now you have a CLUSTER of resistance from 33.20 to 33.28.

The general rule of thumb with clusters is that two numbers in
a general area is OK... and a lot more powerful than a single
number standing alone. Three numbers in an area is good. And
four numbers clustered together is great.

So how close do those numbers have to be? Well, that all
depends on what you are trading. That example above of a stock
trading at 32... well, all three of those numbers are
clustered together in a zone of 8 cents. That is a nice tight
zone. However, if you are trading the Dow futures, a cluster
might be a bunch of numbers within a 10 point zone.

In other words, there aren't any cut-and-dried rules about how
tight a cluster needs to be. If you just start looking for and
finding the clusters, you will quickly get a feel for what
type of zones to look for in whatever you are trading.

HOWEVER, there IS one surefire rule. The tighter the zone, the
better... this applies no matter what you are trading.


In other words, start drawing in support and resistance lines
on your charts. Then keep your eyes open for the places where
those lines are grouped together - those are the clusters you
are looking for.

Your trading will be better off for it...

Great idea... Different Time Frames for Daytraders Why do we use them.. Each chart shows a different stories. On a daily chart we can see a longer term trend and what resistance is ahead of us or what support is below us. We get an overall feeling for a stock... The Trend better to trade with it then against it.

60 min chart shows us key areas for a particular length of time. Say 8-12days where a stock has been finding support and meeting resistance. I like the 60min chart very important to me. I look for clusters of support and resistance on the 60min

I look for clusters on every chart. What is a cluster it is an area where a stock hits and holds many times a support or resistance area... CLUSTERS watch for them....

1 min 5min chart some folks that daytrade use a 5 min or 3 min or 1 min I like the 1 min I like to see all the candles ...

Look for CLUSTERS on them when a cluster is broken it can be the beginning of a drop or the start of a trend up....