Trade Review (video) FLOW Red to Green +4%

12 December 2011

by Adam Beaty

Red to Green Move on FLOW

If you want to learn more about this type of trading, check it out in the Trader's Lounge:

http://www.shareplanner.com/forum/day-trading/4-trigger-red-to-green-move.html

Be sure to Join SharePlanner's Real-Time Trading Network for Free!

Comments

+2 #1 Coach 2011-12-13 10:40

I understood everything, except where do I see a red to green? Is it going over yesterdays close? It went down in the morning, stablized then moved up.

Also, any plan on when you take profits?

Quote

0 #2 RyanMallory 2011-12-13 13:09

Good question coach - so the crossover to green is when it is 1 cent in the green for the first time on the day. So yes over yesterday's close. Your really looking for the move to green, and little with what it does while it is red.

The best way I've seen this trade played is when you incrementally get out - say sell 1/2 at 2-3% higher, and then move the stop at least to break even and then incrementally increase thereafter.

Quote

+1 #3 RyanMallory 2011-12-13 13:10

Adam is much better person to ask on this kind of stuff, but I've talked to him about it at length, so I'm hoping that he agrees with what I said above.

Quote

0 #4 AdamBeaty 2011-12-13 19:48

Ryan is right about the green to red move. When a stock opens below the yesterday’s last price we get the ‘red’. When it finally moves above yesterday’s last price we get the ‘green’. It is on this move that we buy. This is why we use a buy price of 1cent above yesterday’s close.

For taking profits I let the charts tell me where to do that. I don’t have a set percentage for profit targets or stop targets. I also don’t use my p/l to tell me (in fact I hide my p/l while I trade). When we get a series (2 or 3) big strong up candles in the 5min chart we will scale out or take profits. Much like watching a stock on the daily chart. A stock can only run up so fast and so strong before taking a big dip.

Sell into the strength of a big up move. If you scale out, take off half the position and set your stop at the buy price. This will protect your profits and leave you in for a big run.

Also, use prior resistance marks in the chart to sell into. Again sell into the strength as it runs into resistance. Sell out half and hold the rest to see if we break through it.

Hope this helps. Let me know if you have any more questions.

Quote

Refresh comments list
RSS feed for comments to this post