StockFetcher Forums · General Discussion · The OPENING BAR<< 1 2 3 >>Post Follow-up
SFMc01
272 posts
msg #66838
Ignore SFMc01
8/31/2008 8:28:04 AM

My question involves the treatment of the opening bar. Many things we do considers the OPEN of the day. For example: Respectfully, TRO has previously said: " The "Buy Zone":

LONG AT OPEN +.10 TO +.20 when price moving up

SHORT AT OPEN -.10 TO -.20 when price moving down "

As you know, the "Open " on the opening bar is often pretty wild. Sometimes opening very high, comparatively, and closing a lot lower. Or, the reverse.

TRO and others ... Respectfully, how do you think about the opening bar when it opens with a wide range? Do you still look at it treating the open exactly as it is, or, do you treat the open of the next bar as the true open? Or, do you use other factors? What thoughts go through your mind?

Thank you .... Steve


TheRumpledOne
6,358 posts
msg #66845
Ignore TheRumpledOne
8/31/2008 1:28:18 PM


TRO and others ... Respectfully, how do you think about the opening bar when it opens with a wide range? Do you still look at it treating the open exactly as it is, or, do you treat the open of the next bar as the true open? Or, do you use other factors? What thoughts go through your mind?

==================================================================================

I DON'T!!

I don't think about the Open bar or it's range. I could care less.

I am focused on the LONG ENTRY ZONE and SHORT ENTRY ZONE.

If price is moving up and hits the Long Entry Trigger, I buy. When price stalls, I may exit part or all of the trade.

If price is moving down and hits the Short Entry Trigger, I sell short. When price stalls, I may exit part or all of the trade.

I look to FADE THE GAP on the first trade. If AAPL gaps down, and hits the Short Entry Trigger first, I IGNORE THAT TRADE. I wait for price to trigger long.

If AAPL gaps up, and hits the Long Entry Trigger first, I IGNORE THAT TRADE. I wait for price to trigger short.

I may only be in a trade for seconds or minutes.

I don't care about anything else.

If it is a RUNAWAY GAP day, and price keeps moving, oh well, no trade for me that day in that stock. AND THAT'S OK. I'll get a trade or 2 the next time.

This is a simple yet profitable way to trade.






rlac
7 posts
msg #66850
Ignore rlac
8/31/2008 5:32:05 PM

TRO.....Do you just trade one stock? Or are you watching multiple stocks on multiple screens?


TheRumpledOne
6,358 posts
msg #66855
Ignore TheRumpledOne
modified
8/31/2008 10:37:40 PM

If I am daytrading as in MILKING THE COWS then it is either AAPL or RIMM. Only ONE stock. It is like playing a video game and requires my full attention.

If I am trading the RUN FOREST, RUN stocks, I may have up to 3 open trades.

I have two computers with stock charts... one with TradeStation and one with QuoteTracker. Just in case one feed "freezes" or goes down.




SFMc01
272 posts
msg #66880
Ignore SFMc01
9/2/2008 7:32:12 AM

TRO: I am confused. I believe I understand what you have written regarding the buy zone. The charts you have drawn in the past seem to indicate that you define the "OPEN" as the actual open of the opening bar. For example: Your chart of AAPL on 10/17/2007 12:46:08 PM in the thread on Profit Checker.

Respectfully, my question arises when trying to trade other stocks where sometimes the opening bar may be a comparatively wide range ... much bigger than the $0.10 you define as required to enter the Buy Zone. We have all seen stocks that open at one price and within the opening bar increase or decrease $0.25 and then take off from there. My question regards from what point does one compute the buy zone? If I figure the close of the opening bar when it has already risen $.25 on the opening bar, the zone has already been entered. If I use the close when it has already dropped $.25 the stock must make $.35 to enter the buy zone. Consequently, should I accept the open as it is or use some sort of judgement about where to define the Buy Zone? Thank you ... Steve





TheRumpledOne
6,358 posts
msg #66885
Ignore TheRumpledOne
9/2/2008 11:01:27 AM

The OPEN price the first NON FORM-T trade of the day.

Open + .10 is the long trigger

Opne - .10 is the short trigger.

I DON'T CARE ABOUT THE RANGE OF THE OPEN BAR.... In fact, I may have had 1 or 2 trades by the time it closed.

You are STUCK in a mindset.

You must FREE YOUR MIND to SEE how this works.

So forget all that open bar range stuff if you want to MILK THE COWS.

Just set the triggers, fade the gap for the first trade and every trade until the gap fills. After the gap fills, then you can trade the Buy Zone either way... that is, if you haven't already hit your daily goal with the gap fill.







SFMc01
272 posts
msg #66893
Ignore SFMc01
9/2/2008 2:29:34 PM

TRO: Thank you. That clarifies it for me. Steve

SFMc01
272 posts
msg #66895
Ignore SFMc01
9/2/2008 2:43:08 PM

TRO: Thanks again. You are very generous with sharing what you do. I've learned a lot from you, but unfortunately, it appears I still have much to learn.

One comment you made is especially interesting and raises another question. You said: "
I DON'T CARE ABOUT THE RANGE OF THE OPEN BAR.... In fact, I may have had 1 or 2 trades by the time it closed."

Many of my entrys are automated ... I use TradeStation. One or two trades during the first minute is physically difficult to do manually and doesn't allow much room for additional "think time." If you are trading this fast, your "rules" regarding what you are going to do based on the OPEN must be very, very clear. Do you do automated trading, or, could you in these situations? Thanks again .... Steve

miketranz
668 posts
msg #66896
Ignore miketranz
9/2/2008 2:43:14 PM

Avery,when you enter a trade in your "buy zone",lets say a long position +.10,how prone in your own experience is the trade to wipsaws? Have you identified stocks that don't retrace below your zone,that basically tend to go up and stay up above the zone? Where are you stopping out? Thanks,Mike......

TheRumpledOne
6,358 posts
msg #66897
Ignore TheRumpledOne
9/2/2008 4:02:19 PM

SFMc01


TRO: Thanks again. You are very generous with sharing what you do. I've learned a lot from you, but unfortunately, it appears I still have much to learn.

One comment you made is especially interesting and raises another question. You said: "
I DON'T CARE ABOUT THE RANGE OF THE OPEN BAR.... In fact, I may have had 1 or 2 trades by the time it closed."

Many of my entrys are automated ... I use TradeStation. One or two trades during the first minute is Avery physically difficult to do manually and doesn't allow much room for additional "think time." If you are trading this fast, your "rules" regarding what you are going to do based on the OPEN must be very, very clear. Do you do automated trading, or, could you in these situations? Thanks again .... Steve

=======================================

I programmed AutoAvery years ago to MILK THE COWS.

But, as you know, TradeStation went "1984" on me and erased just about every last one of my posts on their forum. It's as if I never existed!! But the thread was recovered from the GOOGLE CACHE!! And can be downloaded from www.kreslik.com

YOU DO NOT THINK... YOU REACT.

I used the Matrix, when I traded manually, to buy/sell/short/cover.. one click no confirmation.. limit orders. That is one thing TradeStation has over the other systems.

Also, you have to have your program coded so it can handle the orders because TradeManager is too slow.

My code ran too fast for TradeManager to handle so I had to keep track of everything.

NO, I DO NOT GIVE OR SELL AUTOMATED CODE. It is TOO DANGEROUS.

But I'll give you a tip... If you use last price in your code, it's too slow!!

Yes, my rules are CLEAR and SIMPLE. The long trigger and short trigger is known. They do not change.

Once the stock enters the zone from the appropriate direction, it's an entry. Then I take what I can.

You have to learn the "pulse" of the stock.... How it moves up/down and to what degree.









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