Trade Review WTW

Oprah just keeps on giving and giving.  This WTW has been an awesome trader the past couple months.  Now I unfortunately wasn't able to get all I wanted out of this trade due to work, I do want to review the chart.

Before we get into the intraday chart.  Lets take a look at the bigger picture.  To be honest I have zero idea what caused this stock to start popping from its recent decent.  I just saw "Oprah, WTW, blah blah blah" on my twitter feed.  But here is why this trade worked on a technical level.

Here is a 30 minute chart of WTW.  This stock had plenty of room to move.  Interestingly enough, todays first initial move in the first 30 minutes stopped on what I call baby resistance.  There were sellers here but it wasn't going to be something that would cause the stock to fail there.  The stock built for another hour or so and then took out the highs.  And is we can see it had room to 24- at bigger resistance, which it ultimately failed at.

On an intraday look we see two beautiful flag patterns with small risk.  These little wicks below the 9ema was my signal to get in and use the bottom of the wick as my risk.  The stock moved relatively clean to my overall target of 24.  It sucks I couldn't get all of that move but I took what I could.

This ladies and gentlemen is an example of a chart we want to play.  It has a catalyst and room to move on a bigger time from.  This is how you line up on multiple time frames.  Stocks move from support to support and resistance to resistance.  These are the plays  I plan to up my risk for.  Because of how smooth they move.

If you have any questions about anything please feel free to email me JDN6832@gmail.com

Watch-List 12/28/2015

Looking to end 2015 with a bang.  As always I will be watching many stocks from @Szaman list.  http://bullsonwallstreet.com/trading-watch-list-12-28-2015/

Here are a few others

Having a bias going into trade (WTW trade review)

One of the biggest mistakes I think most traders make is focusing solely on intraday patterns.  While the intraday action is important, if the overall picture does not support this, you are just trading chop.  And chop will kill your account.  I know this because it has been a problem of mine.  A problem that I have been working hard to correct.  I had an "a ha" moment yesterday after talking with a good friend of mine about this subject.  I'll summarize what we spoke about.

Going into the day, before the market even opens, we should be able to look at a chart and easily be able to identify whether this is a long or a short.  If you can't determine it, you probably should not be trading that stock.  This is why making a watch list the night before is so important.  From your watch-list, you should have a bias on the stock entering the day.  Whether it be long or short.  Okay, so you have your bias and the opening bell rings.  Let the stock make its initial (often emotional) move.  A stock will normally tell you what it is going to do after that.  I stick with my bias unless the stock does something to prove it wrong.  I'll give you an example of what my friend said about this (I hope he doesn't mind me using his words)  "you need to think of it (the stock) like a story...you see WMB bias was short...we agreed with that.. if its going to be a long you want the f-er to reallllly prove to you that it is gonna reverse your bias...then you look at the action...it has a mixed first candle then second candle is green but doesnt show much strength, third candle says....ahh F this i'm weak....and thats when you pounce on it bc your bias was short and it just confirmed it.  thats what g/r is...a story lol of the stock trying but f-ing up and going down

Here is an example of my trade from 12/18/2015

Here is the daily going into Friday before the bell.  My bias was short, I think we can all agree with that.  So I let the stock open and here is how it played out.

The stock collapsed at the open.  From there it bounced and was rejected at the vwap.  These both confirmed my bias.  I now had my set risk.  From there I took my entry within the pattern.  Stock then ORB'd.  I then covered some.  The stock pulled back and created a bear flag so I re-entered.  WTW was a short on the daily and it trended down all day.  

This is what we are as day traders.  We are trend traders.  The stock should have a clear bias on what the trend is.  I get into trouble and lose when I trade something that is not clear.  At that point its just a 50/50 shot.  And with a 50/50 shot in a choppy chart, I tend to get chopped out.  

The lesson:  Find charts with clear trend and hammer them.  If you are asking yourself "Is this a long or a short"  find another stock.

Watch List for 12/15/2015

Aligning on multiple time frames.

If you are a brand new trader and often find yourself wondering if the flag you are staring at is a buy-able flag or just chop into resistance, this is a lesson for you.  I used to struggle with identifying a high probability flag until I started to align stocks on multiple time frames.  I use the 60 minute chart to help identify these.  I think this is a pretty easy way and I hope you do too.  The most important thing is finding the right chart.  When it sets-up correctly, you have a high-probability trade.  And a TRENDABLE stock.  The trend is your friend!

Last Friday, October 9th 2015, I noticed a nice looking chart on YUM.  YUM had disappointing earnings and was down $15.96 in 2 days or 19.1%.  The stock seemed to have found a bottom and I noticed several levels worth watch.  See figure below

Numbers 1-4 were areas I was watching.  (#2 represents a trend-line or flag)  These are pretty easy to identify if you zoom out and look at a bigger time frame such as the 60 minute chart.  

So I had this stock on watch entering Friday.  Below is the intraday 5 minute chart that I used to enter and exit the stock.

1)  Stock breaks the down-ward trend line.  This moved way to fast for me so I waited for the first pullback.  

2)  Stock finally pulls back and begins to form a flag.  As the white line represents areas from my 60 minute chart, this held a support level.  (Remember previous resistance can and will become new support)

3) As the stock begins to flag and hold support, it makes higher lows.  I decided to take a long position.  The 9ema finally caught up to the price and the stock began to move upwards.

4) The stock broke out of the flag pattern and the final area of resistance (represented by the top white trend line.  The stock was off to the races at this point and never looked back.  At this point it is just a matter of scaling out of your position and taking profit.

Another stock that I traded with similar patterns and set-ups with BIS from 10/13/2015.  BIS is the bear ETF of the biotech sector (represented by IBB)  Below in the hourly chart with areas of interest I was watching.

As we can see from the 60 minute view, BIS actually broke resistance but was immediately rejected and traded back into its range.  It bounced at support and then traded back to the top of the range.  The stock paused at the high of the day.  I then looked for a good intraday entry.

You can read the reasons of my entries above on the chart.  When a stock clears resistance and isn't in a range, flags work.  There is a difference between a trade-able stock with working intraday set-ups and a stock that is just moving and thus not trending.  It took me a while to finally understand this.  Now that I have, I can narrow down the charts I want to trade and trade less crap.

Just a side-note to show you why its not all about intra-day setups as well.  Take a look at CANF from Monday October 12th 2015.  

You can argue that when it took out the high of day this could be an ORB play.  But take a closer look at the bigger picture when you zoom out.  

The stock ran into resistance.  An intraday long set-up was a low probability trade.

The main thing I have learned from trading has been to get your bias of a stock from the daily or 60 minute chart and then take intraday patterns that go along with this bias.  Look for your clean charts and trade the flags within.  

The chart that changed me into a pull back trader

VLTC had a nice 2 day run a few weeks ago.  Watching this perfect trender move changed the way I trade forever.  Below is the chart with all the patterns and entries that could have been taken.

I think this is an example of a perfect trender.  The pull backs to previous supports/resistance create the patterns.  If you can buy dips like this your risk is so tiny and you can just ride the stock until the trend changes.

Watchlist 7/15/15

Many names I will be watching are also from Sayed aka the @Szaman list http://bullsonwallstreet.com/watch-list-07-15-2015/


OHRP think this still has room to run.  Chart 1 notice the volume and chart 2 notice the support/resistance

Trade recap 6/22/2015

I went 1 for 5 with my trades today.  Surprisingly, I am extremely thrilled with the way I traded today.  There are a few reasons why.  1)  I ended slightly green.  2) I did the right thing on all of my trades.  The way I traded $SGYP is what made me happy.  It is in my opinion one of the best trades I have ever made.

After seeing $SGYP drop over $1 in about an hour or so today it came on my radar.  I wasn't sure how to play it at first but began to monitor it.  After a big drop like that, what I did notice was it started to bounce.

It started to look like a 1-2-3 setting up.  I decided to go long after it broke the 2(ish area).  The reason for the (ish) is because I was using the top of the candle not the wick.  It started to follow thru but ran right into the 20ema.  I sold for a small loss shortly after it failed to hold my stop, which I moved up after a higher low.  I lost 8 cents on the trade big deal.  I was going for 40 cents anyways.

About 20 minutes later, what I noticed was the line in the sand held again.  So the bear flag failed to have any follow through.

As soon as the stock broke the 9ema I went long.

Here is how I played it.

This trade required a lot of patience.  I have developed a lot over the past year.  I pretty much just set a stop on this and kept an eye on it.  My first target was 8.48 (the VWAP), I sold 1/2 here.  My overall target was 8.80 (Fridays lows)  I sold 1/3 more after a big green candle and the last bit I sold a cent or so from the top, which was my target.

Crazy how you can have a 20% win rate and still have a good day.  But if you do the right things, that could be all that you need.

For a comple look at the tradervue trader here is the link http://www.tradervue.com/shared/trades/3067775

Watch-list 6/12/2015

6/2/2015 Watch-list