American Express Using Rangebars

Today AXP was very weak and provided almost 2.00 of profit using a .20 rangebar for sell short entries. There were 4 sell short entries and no reason to cover until 4:00pm. The first entry was at 9:40 am @ 40.80; the second entry was at 10:50 @39.99; the third entry was at 12:53 @ 39.54; the last sell short signal was given at 1:10 @ 39.50 and there was no reason to cover because AXP just kept making lower low on the .20 rangebars providing a 1.91 profit if you covered on the close.

Trading Research In Motion with Rangebars

Today was another day to take 1.63 out of day trading RIMM using a .25 rangebar. The first entry signal was 60.19 @ 9:32 am; the next long signal came 2 minutes later @ 60.25. If you missed those at the open we got another signal to go long at 60.40 @ 9:46 am. Another long signal came at 60.90 @ 10:26 am. The stock topped out at 61.39 and we got our sell signal at 61.14 @ 11:05 am. This produced a profit of .95 on the long side. As you can see after the sell signal we had a trend reversal and did not take the next trade until 2:03 pm on a sell short signal @ 60.43. We did not cover until our signal came at 59.75 @ 3:43 pm. producing a profit of .68 on the short side to give a total profit on the day of 1.63 taking 4 longs and 1 short.

Trading Gold Stocks During Comex Trading Hours

If you are going to trade Gold stocks such as Barrick Gold Corp. ticker ABX, you need to know that Comex Gold trading hours are from 8:20 am est. until 1:30 pm est. Even the Gold ETF ticker GLD, opens on the NYSE for trading at 8:20 am est. As you can see on the 15 min. chart of ABX the stock gave it's first long entry signal at 9:00 am @ 43.60 today. The first pullback for another long entry was not until 11:00 am @ 45.47. Also, the exit was at the Comex close at 1:30 pm, the closing price on ABX was @ 46.42 after reaching the session high of 46.61.

$RIMM Rangebars Eliminate Noise

RIMM had a reversal pattern for a long entry at 9:57am @ 58.30. If you missed that entry there were a few more pullback entries. Most interesting is that the last long entry rangebar started to print at 12:04pm and did not finish printing until 1:24pm which kept you out of all that chop on candlesticks in 5 or 15 minute bars.

Trading With Range Bars

RIMM provides fantastic trading opportunities using a .25 rangebar. Above is an eSignal chart of Research In Motion using a .25 rangebar. The sell short entries on Wednesday were: 60.63 @ 9:31am; 60.49 @ 9:50am; 60.01 @ 11:55am and Thursday were: 59.35 @ 9:31am; 58.35 @ 10:15am. The next support level 56.60 so I will be looking for more pullback entries in this downtrend for intraday trading.

Trading Research In Motion with Rangebars

Using a .25 rangebar to sell short RIMM today produced a profit of $1.67. The 1st sell signal was at the open at 9:32am @ 64.72 and an exit at 9:38am @ 64.26. The 2nd signal to sell short was at 10:31am @ 64.29 with an exit at 1:17pm @ 63.53. The 3rd sell short signal was at 1:36pm @ 63.41 with a cover at 3:34pm @ 62.96. No doubt that using a .25 rangebar works very well. I will see you tonight to trade the Hang Seng if it's trending.

Broadcom Looks Ready to Test 200-Day SMA

BRCM pulled back from it's downtrend giving us a possible sell short opportunity if we can trade below 26.65 on Monday. My target will then be the 200-day sma at 24.77 with some nice momentum moves to the downside intra-day on a 15min chart.

Juniper Networks Sell Signal on Daily Chart

Friday I got a sell short signal on JNPR at 25.69 and continuation for follow through on a break below 25.05 for a price target of 23.03 which is the 200 sma. I will be watching the hourly and 15min charts for day trade momentum moves.

Gold Reversal Pattern Now Flattening

On 10/29 we had a reversal pattern give us a long entry at 102.05 when GLD broke a 2 day high with good momentum on the 60min chart. Now it looks as though the trend is flattening out and i will be looking for a pullback or a possible reversal pattern for a short on the 60min charts for a swing trade or a day trade at least.

Research In Motion Reversal Pattern

Last week RIMM gave us some buy signals on the hourly charts and could be reversing trends. I will be looking for momentum moves intra-day on the 15 min. charts.

VIX vs. S & P 500 Predicting Trend

The hourly chart of the VIX (black line) has crossed the S&P 500 (blue line) on Thursday. With the FOMC Meeting and the employment figures past us, perhaps we are ready to continue to the upside.

S & P 500 In Consolidating Range

This past week we saw the $SPX in a consolidating range. This is very evident on an hourly chart. You can see that the 1st hour of the trading day was the entire range for each day this past week. Over the past week the $SPX has closed higher and looks like it could be setting up for a retest of the October high of 1101.36 .

PNC Financial Buy Signals Range Bars vs. 15 min.

PNC had multiple set-up long entries for day trading today. I want to show you the difference trading the stock today using a 15 minute chart versus using a .25 range bar chart. Clearly you can see the advantage of using the range bar charts today with your first buy signal entry at 50.05 at 9:42am rather than 50.69 at 11:45am. The multiple buy signals on the .25 range bars allowed you to build a nice position with 5 entries; whereas, the 15 min chart only had 2 entries.

S & P Inverse Correlation with the Volatility Index

Since the market meltdown a year ago I have been watching the Volatility Index (VIX) trade in an inverse correlation with the S & P 500 (SPX). As long as the VIX trends lower I will be bullish on the SPX on a longer time frame.

Trading American Express Earnings

Earnings season is my favorite time of year to trade. The increase in volatility provides some nice trade setups for equities. Last week daytraders had quite a few. AXP gave a long entry (35.37) before earnings Thursday on a pullback, then a strong close at 36.49 and a high of 36.80. After the earnings on Friday we had a sell short signal (35.71) on a pullback in to a weak close of 34.64 and a low of 34.26.

Using Range bars over Candlestick charts to Day Trade Stocks

Having day traded stocks using both range bars and candlesticks on minute charts has provided me with enough statistics to tell you that I trade much better intra day using range bars. Enough so, that it has influenced me to start this blog to help other intra day traders to give them a try. Let me show you the September 15, 2009 Alcoa stock chart on a 5 minute time frame and the same stock chart using range bars. As you can see there was no reason to exit the trade until a red range bar printed as opposed to getting shaken out on the 5 minute chart.

I have found that range bars do keep me in trades longer on trending stocks. My next post I will show you an example of a stock on a trendless day. There too you will see how easy it is to scalp using the range bars over the 5 minute intra day charts.