Eyeballthecharts

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Eyeballthecharts

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    Stocks Watchlist

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    isatrader

    Posts : 30
    Join date : 2011-04-02

    Stocks Watchlist

    Post  isatrader on Thu Apr 07, 2011 2:10 am

    I'm revisiting a recent trade as it's approaching a key resistance and showing some positive signs. I traded HOIL.L (Heritage Oil) at the start of March a took a nice 1.57% ATR adjusted gain out of it. To explain an ATR adjusted gain is a method I use to determine the quality of a trade using its 200 day average true range as the benchmark. So a 1% ATR adjusted gain is the 200 day average true range. So a 1.57% ATR adjusted gain means I got 1.57 x the 200 day average true range.

    Anyway HOIL.L has retraced almost all of the March short covering rally and is close to the -2ATR level now. It's currently 22 points above the recent low and is showing signs of a reversal. I'm a big fan of indicator divergences in these kind of trades and HOIL.L has multiple divergences on display. Force index shows that the selling volume has dried up so this could be ready for another run at the 300+ level. The 200 day ATR is 14.53 pts so at it's current level of 277.30 it's only just over a days range. However, the major support around the 255-260 level is also within reach. So I'm going to watch to see if it can get a buy confirmation candle in the next two days as this could be my main trade for next week.



    I like to use candlestick patterns and point and figure chart together. So it needs to break back above 282 to make intra-day double top breakout signal on the 30 min P&F chart. But until then I'm on the side lines as it could easily break down to test recent support first.








    Last edited by isatrader on Sun Apr 10, 2011 6:32 pm; edited 1 time in total
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    Badger1
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    Join date : 2009-09-27

    Re: Stocks Watchlist

    Post  Badger1 on Thu Apr 07, 2011 9:02 pm

    Hi Isa. Great to see some point and figure analysis. Something I know little about.
    cheers
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    isatrader

    Posts : 30
    Join date : 2011-04-02

    Re: Stocks Watchlist

    Post  isatrader on Thu Apr 07, 2011 9:10 pm

    Thanks Badger, I'm still learning to use it but I find it really good as it takes out the time element of price moves so all you see is the significant price action and it makes support and resistance levels really obvious.

    I'm working on a simple breakout method using point and figure at the moment. I'll try and post it up so you guys can give me some critique on it.

    Cheers

    isa
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    isatrader

    Posts : 30
    Join date : 2011-04-02

    HOIL.L Update

    Post  isatrader on Sun Apr 10, 2011 6:40 pm

    I haven't forgotten about this one and it made a squeeze pattern on the daily chart last week, so a move up would likely be very quick. So I'm considering placing a buy-stop order at 283.5 for Monday. Here are the charts:

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    Wig

    Posts : 616
    Join date : 2009-10-02

    Re: Stocks Watchlist

    Post  Wig on Sun Apr 10, 2011 6:52 pm

    Never used point and figure myself isa - from my limited understanding it only marks down new highs and lows or something like that?

    If thats the case I can see why they'd be really useful to determine condolidation patterns to watch for breakouts, as you say in theory the noise should be filtered out meaning easier to spot formations Suspect

    cheers
    Wig


    Last edited by Wig on Sun Apr 10, 2011 7:15 pm; edited 1 time in total
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    isatrader

    Posts : 30
    Join date : 2011-04-02

    Re: Stocks Watchlist

    Post  isatrader on Sun Apr 10, 2011 7:04 pm

    Wig wrote:Never used point and figure myself isa - from my limited understanding it only marks down new highs and lows or something like that?

    If thats the case I can see why they'd be really useful to determine condolidation patterns to watch for breakouts, as you say in theory the noise should be filtered out meaning easier to spot formations:suspect:

    cheers
    Wig

    It's really simple in that if the chart is in a column of Xs and it makes a new high then you add the amount of Xs necessary, but if it doesn't then you do nothing. If it's in Xs but doesn't make a new high and reverses 3 boxes or more then it becomes a column of Os. So a lot of the time you do nothing, so time is ignored. I like it as areas of support and resistance are very easy to see and chart patterns are also easily identified with clear entry and exit points.

    Stockcharts is good place to start to learn and has lots of free info:

    http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:pnf_charts:pnf_basics
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    isatrader

    Posts : 30
    Join date : 2011-04-02

    HOIL entry 284.5

    Post  isatrader on Mon Apr 11, 2011 2:18 pm

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    isatrader

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    Join date : 2011-04-02

    Point and Figure HOIL.L Chart

    Post  isatrader on Mon Apr 11, 2011 6:15 pm

    Here's the end of day HOIL.L chart. 30 minute point and figure showing my entry into this. I'm targeting the 320 level.


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