NYSE:BITA   BITAUTO HLDGS LTD
249 19 5
Looks like an IHS             here
ddalton55 PRO
2 years ago
I like this chart...my intention is to take a long position on Monday if I get a setup to enter on a shorter time frame for a daytrade and will keep a portion for a swing if it moves in my favor and closes good on Monday (I like to take some profit early to potentially give me a free swing trade on my remaining shares). I like that it has broken a downtrend line, consolidated and confirmed price strength on Friday. Depending on my exact entry point my stop will most likely be 82 based on what I see now...meaning I will have to get a close below 82 on the time frame I enter on to stop out. If I am able to keep some for a swing trade I will let it run until a daily close below the EMA 8.
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KLang PRO ddalton55
2 years ago
Thanks for sharing your plan. I kinda like this chart as well, but I'm not sure I'd keep my stop that tight. But I like your idea.
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ddalton55 PRO KLang
2 years ago
Since I enter on a shorter time frame I keep my initial stop fairly tight...it could change from 82 based on where my actual buy point is but I would rather stop out and get back in if necessary. I do have some specific rules for how I place my stop on a shorter time frame...it is just personal preference especially since I enter all trades with the idea that it is a daytrade and it only becomes a swing if I have taken profit and it is still looking good at close. If I were entering as a swing trade from the start my stop would definitely be different.
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KLang PRO ddalton55
2 years ago
That's interesting. Do you mind if I ask what your criteria is? Is it an MA cross?
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ddalton55 PRO KLang
2 years ago
As an example...the last 60 min candle for BITA closed below the low of the previous 2 candles which means it also did on the 30,15, etc...every lower time period. So the first thing I look for is a reversal back to the upside which naturally will start on the lowest time frame chart...here I am looking for a close above the high of the previous 2 candles. Usually this will follow a hammer candle or maybe just a slightly higher low but once I get that "signal" then I know where to place my stop and it will usually be pretty close so I don't mind if I happen to be wrong, I can just try again on the next signal. I also have levels in mind, like 82 for BITA that I really don't want to see a close below in early trading. If price does close below whatever level I have predetermined then I would look at the next level down to see if it holds. Keep in mind that I am only looking for stocks that are exhibiting strength and I prefer to trade them only when in agreement with SPX direction so they really should not retrace from the previous day close very much...obviously gaps up or down like we have had a lot of lately can change the game plan. Like I said, this is geared for daytrading entries and I will even use a 30 second chart especially at the open...after things settle down a bit I typically just use a 5 min chart. There is more but that gives you an idea of what I look for.
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ddalton55 PRO KLang
2 years ago
Also, I typically do not use any indicators...just price action, other than the 8 EMA for following a swing trade. I often look at fibs to see how those levels align with levels I see on the chart and will also use trend lines...I like trend line breaks!
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KLang PRO ddalton55
2 years ago
Very interesting. I'm more of a pattern person (obviously) and look for them on intra day charts, which I don't publish here, but tweet on my stream. But I'm well aware that there are many systems out there and this is one I will take a look at for sure. Like you, I'm not huge on indicators, I'm always about price - but I've been thinking lately that SO MANY people use indicators (some even more than price), that I should probably look at them if for nothing else, to see what the crowd sees. :)
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ddalton55 PRO KLang
2 years ago
I will sometimes when reviewing charts put up a 50 and 200 SMA because there are a lot of people that watch those on every time frame. Probably my favorite "pattern" is just an inside candle...it has to go one way or the other and you always have a good idea which way that is...of course nothing works all the time.
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ddalton55 PRO
2 years ago
Also, I am still very much in learning mode so I always like to find people like you with good ideas to share.
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KLang PRO ddalton55
2 years ago
I'm always learning myself. I think it's important to explore, see if something works for you, have it in your toolbox. But I think it's easy to get overwhelmed with all the different systems and indicators and you could easily freeze up. It's become much easier for me to say "I don't see anything" on a chart and move on to a chart where I do see something. I follow a couple of ppl on twtr where I have no idea what they're looking at yet their system seems to work for them. I've also seen ppl trade well off of simple MA touches/bounces. As I said, there are so many systems out there :)
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ddalton55 PRO KLang
2 years ago
yep, I agree...if you have a few minutes I will show you something on HAIN
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KLang PRO ddalton55
2 years ago
Sure.
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ddalton55 PRO KLang
2 years ago
is there an easier way where we can both look at the chart...and chat...i need to be on another computer to look at charts
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KLang PRO ddalton55
2 years ago
I don't know - I really dumb about computer stuff. You can just put your link here and I'll be able to see it.
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ddalton55 PRO KLang
2 years ago
ok, give me about 5 mins. to fire up my other computer and i will just message you back
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KLang PRO ddalton55
2 years ago
Cool - I'm working on another chart for a friend so I'll be in and out for a few minutes
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ddalton55 PRO KLang
2 years ago
ok...are you where you can look at the daily chart of HAIN
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KLang PRO ddalton55
2 years ago
yeah
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