Regarding learning, I am also following PERI. My observation was that a buy signal was generated on the 7th using stockchart:
and on the 12th with barchart:
. With BOIL the opposite occurred with the buy signal coming already on stockchart while nothing on barchart - so its a learning thing and trust comes with time. I would say my style is going to be a trend investor (days weeks months) where you catch those uptrends and sell in the fashion of @Quillnpenn I hope 
…doc
edit: charts added
SIMPLICITY SIMIPLICITY
The SS charts are so simple that a Blind person can swing trade in the stock market by informing the person the current position the stock is sitting at. The person has to envision and be told where the price labels are, following the two simple (2) rulez and understand how the OHLC bars are formed.
Practice with another person by closing your eyes and being told the current position.
Lake Dawg’s charts are to complicated with too much noise and to many price labels. Point where Out of the Gate to buy is and where is the Finish line in horse racing analogy.
How do you explain your thoughts to a 6th grader who is being taught in this quarters investing class lessons. These poor kids have to pick a few stocks in the class contest. My grandson is trading AJG, COST, APPL the SS way while the others are a bunch of HODlers (hanging on for dear life) and losing value in their stock selections.
$INDU | SharpCharts | StockCharts.com change the default ticker to BOIL. At 10 am EST, one can make an informed decision within 5 seconds.
And again at 3:30 pm EST.
Case in purnt, on the Stockcharts chart along the right-hand side, I would click on the little globe ICON and select Sector SPDRs, then plow through the list of charts to make an informed decision within 5 seconds for each stock. Have to look at the 12th stock XRT (sold two (2) days ago. Then on to the cryptos $ ETHUSD (buy signal two days ago) plus I trade with the 4-hour chart all day long. Some of my students on bang it for a $ 250.00 profit, wait for the next buy signal. Stir rinse and repeat.
XLK this year is 8 for 8 with ZERO losses. Currently up 56.62 % this year 2023. Been swing trading the portfolio of SPDR’s since 2006.
XLU 10 for 10 with Zero losses.
On average there is 8 to 10 highs per year.
I don’t have the luxury you may have and that is TIME.
Some of my students just trade the 20 ema over the 200 ema ONLY.
ACP | StockCharts.com All the talking heads are touting GOLD, and the banks are stock piling the hard stuff.
This chart might not work to view if not a subscriber.
Doc: Do as Arindam does and through up a hundred bux ( you lunch money) and let it ride. (Watching is not gonna cut it ( eg. AJG) ). Get out at the Finish line or keep trading since you see you can make a lot of money. Don’t procrastinate GO FOR IT. Simon is here to protect your SIX. It is the olde Woulda Coulda Shoulda. Be advised that there will at times a Head Fake or two.
Investing is a business and must be treated as such.
Some brokers do not allow fracturing of shares. So just buy a single or two shares with your lunch money.
As Arindam always says it is " Chief’s choice " to be a successful Swing Trader.
Quill -
Ps. COST is my cash cow (been trading since May of 2007) as well as V (visa). You can only use Visa or cash at the cash Register. COSTCO has about 123 million entrance card holders I own V with COST in tandem. So far V is 8 for 8 highs with Zero losses. COST is 13 for 13 highs this year.
pss. My new student yesterday was a Pharmacist who got caught up in the layoffs. I gave him a lot of home werk from Dividend portfolio, Swing Trading portfolio (COST, V, APPL, UBER, AJG, PLD , tetter totter UGL / GLL and GDX), start owning the 12 SPDR.'s, re-reading the SS rulez. over and over for a test. How to use Spreadsheets for recording the buys and Sellings. Observe the 20 ema over the 200 ema. (AJG an example). Who cares of chasing the Lows and Highs. Man, it is booooooring that is making money this way. Compounding is the secret if you are a very busy person. But check in at 10am , 3: 30pm.
psss Doc if you lived in my hood, it would cost you a six pack of White Castles with cheese on how a poor church mouse scratching for a living as a swing trader trades. - Jusat kidden.
Thought so, but that’s the heart of my question. BOIL is in a downtrend, so technically you’re looking for a reversion in BOIL and that is perfect, it might be heading that way. Personally, however, I think it is important to define for yourself, your strategy and approach. Top down: trend of the market, trend of your sector, trend of your target and whatever signal/trigger you are considering. Hence why I gave you charts with lots of EMAs and even Bollinger bands on the last one. Commonly used to define trends and mean reversion territories. For the record, I don’t use Stockcharts price label thingies, don’t need anyone else to mark up my charts, that was their default.
Some food for thought. I wouldn’t recommend it right now until you are comfortable with your approach to trends, but consider options to approach trend trading. I do 3-5 Bull Put or Bear Call Credit spreads every Mon/Tue at 10-12 DTE. Mon-Thur I spend 30 minutes managing the ones initiated the week prior. Have hard rules of profit taking and stop losses. The core of all the trades are based on trends plus patterns/squeezes. Running 92% wins, trivial drawdowns. Spend time trying to fine-tune rules as well as have been building spreadsheets that generate trigger points to make it simple. Message is, don’t be afraid to learn about options. Poorly approached, they’ll suck you dry, but used with thought and they are powerful. But learn starting now, use TOS simulated trades or OnDemand to test. Just get exposed to them, don’t try to force learn immediately.
Good luck,
Lakedog
Boy, almost 800 words and not two sentences coherently put together…somethings never change. And why I’m gone. Later, much later.
"I was neglecting BarCharts while learning StockCharts. Now I have 2 tools that give slightly different information - valuable information for investing. I also use thinkorswim, but still trying to figure it out.
Doc,
There’s a proverb --applicable here-- that goes like this:
“The man that has two watches never knows what time it really is.”
If you like how stocks can be charted at StockCharts, then stick with that platform. If you prefer what can be done at BarCharts, then stick with that one.
For sure, an experienced chartist can make both platforms produce the exact, same signals. But why do so, when one is enough?
Secondly, TOS is “feature-rich”. No doubt about it. But the better use of that platfrom is for execution, not analysis, and done with a very mininalist chart at that. (IMHO, natch.)
Doc,
Something no one has mentioned so far is FUNDAMENTALS. They matter hugely in the case of commodities. If you’re going to trade nat gas (or wheat, sugar, copper, etc.), then the basics of ‘supply and demand’ matter. Those factors should be your first consideration, not price-volume charts.
So, your first question to yourself should be, “Why should this trade work?” Second, ask yourself, “What’s the best way to implement it?” Third, worry about the timing. Lastly, size a position appropriate to your account and tolerance for risk and be prepared to exit fast if the market doesn’t nearly immediately confirm that your entry was correct. (“Too early” is no different than “wrong”.)
IMHO, 'natch.)
Appreciate all the great educational input. Lots of information to process. Thanks. Still just watching and learning…doc
re: 20 ema over 200 ena daily report
Stockcharts found 45 candidates today
// Bullish 20 over 200 ema
[type = stock] and [country = US]
//and [SCTR > 90]
and [Daily EMA(20,Daily Volume) > 500000]
and [today’s ema(20,close) > today’s ema(200,close) ]
and [yesterday’s ema(20,close) <= yesterday’s ema(200,close)]
and [close > 10]
= = = = = = = = = = = = =
[type = stock] AND [country = US] AND [Daily EMA(20,Daily Volume) > 500000]
//and [SCTR > 90]
AND [Daily EMA(20,Daily Close) > 10]
AND [Daily EMA(20,Daily Close) crosses Daily EMA(200,Daily Close)]
= = = = = = = = = = = = =
eg, CUBE - CubeSmart
The 200 ema is the MAGNET LINE where the 20 ema goes up and over the 200 ema, then goes back down over the 200 ema. Stir rinse and repeat.
re: 20 ema over 200 ena daily report
What a DAY TRADER sees.
re: COST 1 minute chart with a 5 second delay. Otherwise it is a 15 second delay.
Quill,
Take a look at this chart of a TEMA 5-20 system applied to silver.
Said another way, I don’t know why you favor a 20/200 trading system when that’s the all-time favorite used by the HOLDrs you disparge so much.
HODler : difine hodler - Google Search find a theory you like to use.
My new student wanted to know an easy way of buying and selling.
As you are well aware, there are many ways of skinning a kat. I first learned to use 13 over 50 ema many years ago.
$INDU | SharpCharts | StockCharts.com this might go into default mode. Just type in the ticker SLV or any ticker symbol.
$INDU | SharpCharts | StockCharts.com this is a 5 over 20 ema. or change it to SMA instead of EMA.
As a casual observer, ascending / desending happens.
As I have said before, the 200 ema is the magnet and the 20 ema may go up and over the 200 ema for a while but gravity will bring it back down indicating as a sell signal is about to happen.
On the TEMA 5-20 chart the solid black line is the magnet which I believe is an easy stock to swing trade with the smooooth xovers assuming the red and green arrows are automatic provided by the software for placement.
Something to ponder.
Quill -
Quill,
You’ve got things exactly backwards. Prices aren’t like iron filings that are drawn to the magnet of a moving average. Hence, there’s no more “magic” (or magnatism) in a 200 day MA than a 20 day or a 17 day or a 53 day MA. All of them are just after-the-fact descriptions of what has already happened.
Them who hate TA like to quip, “Traders don’t use TA becuase it works. TA works because traders use it.” So, yeah . If the institutionals are cuing off the X-overs of the 50-200 MA pair, then that pair might become useful if that’s the kind of trading one wants to do.
But, more often than not, it’s fundamentals that make charts, not the othe way around, and when prices become over-extended --to the upside or the donwside-- they mean-revert. That’s a concept that’s a lot more tradable than “moving average magnatism”.
Run this test. Benchmark the 20-200 pair against wariants and see which --if any-- provides superior results. What you’ll find is that, sometimes, one pair works better than another for some tradables than others. But mostly, it’s just a choatic guessing game where loss management becomes far more important than trading system selection.
Charlie
BOIL still looking good. It’s up from the 23.82 flag and currently 27.60.
Quill, thanks for the scan settings in that earlier post.
I’ve been wondering how you all do scans. I’m still trying to get the format right on stockcharts…doc
edit: wow Quill, COST killed it!
Hey Doc, I mainly use TOS for scanning, won’t add that to your learning list right now. However, it looks like you are trying Stockcharts scanning and want to make sure you know about their library of scans and examples.
Go to the top left of their main webpage, just under the big logo and click on “Charts & Tools.” That brings up their page of chart tools and educational components, organized in sections and tiles. About halfway down, you’ll find this section:
Right side, second from top is a link to their scan library which are premade scans of a various type and also at the bottom, scans from some of their main educators.
You can play with them and learn tips and tricks. One quick comment, I find scanning various chart lists that I keep (usually 500-750 charts) keeps it cleaner and easier than entire kingdoms. The lists are “prescreened” for stocks for general fundamental aspects (like change in quarterly revenue, open interest, etc).
Happy hunting,
Lakedog
Doc,
The following site Scanning — s.c.a.n. for the students looking for strange requestes.
What I and my son is doing is trying to create a scan that will find stocks ONE day passed the FLAG or Out of the Gate at the low and as well as the Finish line or the top FLAG. Came close but they are 3 or more days out finding hundreds of stocks to plow through.
Have to do more fine tuning.
Quill -
Prices are magnetized to the individual EMA.
However, the 20 ema is magnetized to the 200 ema hoping I had mentioned it correctly. If you want a headache watch what Oliver at the below talks about.
"Oliver Velez Trading " on the YouTube explains in detail concerning all his charts having the 20 over 200 Ema’s to his students.
Quill
Doc.
re: Simon Sez III rules apply and really works.
I think i mentioned you could at least buy one share with your lunch money or ask you wife for a bigger allowance money. Or raid your kids or your Grandkids Piggy bank
COST is going to give its stockholders a Christmas present of $ 15.00 per share announced today. Last price about $ 659 and change.
Now, let’s look at UBER. Don’t watch it, buy one share to have skin in the game. Currently at $ 63 and change.
Keep it up, all studying will kick in to be a successful Swing Trader and as good as Arindam. :o)))
Quill -
Thanks Lakedog, I’m going to look at that because right now I use TOS (not for charting), Barcharts and Stockcharts so If I can use TOS for charting that would be a big help…doc
My comment was about scanning in Stockcharts, just wanting to clarify to not confuse things. Are you interested in references in TOS charting or scanning or what? There are a ton of Youtube videos going over options in scanning or charts for TOS. If you have a specific chart structure or scanning for TOS, happy to try and send you a chart setup link, if I can. Many of others on here happy to help also.
Lakedog
I’ll second that TD AmeriTrade makes dozens of tutuorials available on how to use TOS for charting, scanning, etc.
