Over the years you've been posting, you have made mention of the clock and its importance in your trading. Your attention to it has intrigued me and I have tried ever since coming on board here to put it in the same context as you do. It's hard to do because we aren't actually seeing your trades in real time. Would you explore the importance of the clock as it relates to movement and momentum? It clearly has patterns you've seen and represents a part of your edge. I'm curious if i'm seeing it in its proper light. Thanks much.
Forgot to add this... when you have a stock such as VECO on your watchlist, do you use some sort of alert to let you know it is a mover? If so, what are the parameters that trigger the alert, if you don't mind sharing?
-Blue Collar Trader
I trade using only a 5 minute chart. I have noticed that if a stock is trending strongly and then stalls a makes a pullback for instance, its better to take the long profits, short the pullback and then wait for a new 5 minute candle to re enter a long postion and set a stop just under the previous candle low. Timing is crucial , I watch the clock closely and every situation is different but using this technique has made me shedloads of money over the years. Risk is very low because if it turns and hits my stops then I’m out only a couple of pennies. If it works then I have a huge jump on the traders who wait. I might add quickly to my position since it is already a winning trade.
VXX this morning provided a textbook example.
Currently it is a sellers market (VXX moves opposite the market) so keep in mind that drives all my decisions.
Previously I sold the VXX long using this same technique at the 10:30 am candle, taking profits and am short this red candle which feels to me like a fake out. I’ll take it anyway but keeping in mind that the big money at the moment is VXX long.
So I wait until the red candle 5 minutes are finishing, cover the short and go long. It immediately starts rising again as the fake out sellers have no power against the buyers of VXX and the market sentiments in general.
Sell it after $1 run, taking profits and do it all over again.
At the same time I traded FAZ and earlier GG , EGO and they all did the same movements. The 10:30 candle on GG EGO were textbook examples as well.
For my alerts I only set it to show new highs or lows nothing more.
First chart is VXX entry,second chart is exit.
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