Swing trading... lessons learned...

[dmk112]

Reg channels are based off a "best fit" line that is drawn through the middle of a set of data points encompassing a significant low a significant high (or vice versa). The slope of this line is called the midpoint and reveals the nature of the trend. The upper and lower lines are then added to the midpoint line. Obviously the "best fit" for VPHM's significant high and significant low is still downward, even though some may think it 'should' be upward because of new highs or whatever.

So in a basic explanation, yes, it's because of those down days, and the slope of the angle on the journey down. Now, price has to work harder to get that best fit line to slope upward and hence the outside lines turn it into an upward sloping channel.

Spike, don't you have forumlas for the channels? If so, couldn't you calculate a price of what it would need to get a channge turn up?

[Websman]

Well VPHM didn't stop in the after hours either...its up to 14.84!!!

I hope you guys are still in.

I wish I was still in... A few more drinks and I won't care.

[B.J]

Still in Webs... tomorrow will be interesting to say the least.

[dmk112]

Still in Webs... tomorrow will be interesting to say the least.

Hopefully we will break todays high's if not - I'm out!

[spikefader]

Spike, don't you have forumlas for the channels? If so, couldn't you calculate a price of what it would need to get a channge turn up?

I'd rather just wait and see the movie! haha

Seriously though, someone might well be able to calculate that. If they wanted to......... lol

[B.J]

On a selling spree this morning:

VPHM 13.81 (took the $$$, didn't want to press it)
ORBT 10.43 (3% down, fell under 10.70 support, didn't want to wait for 9.50 support)
PWAV 10.70 (4.5% down, extremely weak yesterday after seemingly starting a bullish triangle break the day before)

Only one left is AAPL, which is having an OK day to this point. Market is not looking good, so I'm not pressing.

[UMiami Law]

Talx

Does anyone know why TALX dropped big today? I could find no news or downgrades. Is this a good buying opportunity?

[B.J]

TALX: Not a bad bounce of the 50 day moving avearge. 33.5 or 34 would have been a great place to buy. Kind of encouraging to see some stocks bounce and hold up amid this environment, but there may not be enough of them right now.

[B.J]

LOL! VPHM down today, but NOW the channel turns up

[B.J]

If some of the experts would be so kind, I have some in my sights:

Started to nibble back into STV. Tomorrow, if it starts well, I buy more, if not, I sell my portion.



ERS daily looking like a possible beginning of a morning star formation. Plus looks like it broke an intraday bull flag.



All, please let me know what you think.

Nice day for VPHM. I still think getting out was the best option as the market begins to turn choppy.

[B.J]

Added some STV at 14.28 (avg. 14.36), and bought some ERS at 9.65. I'll see how it goes.

[B.J]

Didn't like the STV profit taking today (upper channel touch). Sold 1/3 of total for 9.62. I'm personally bullish on it, but the market will do what it wants. It does remain above its uptrend line, so I'll see what comes Monday.

ERS completes Morning Star. It will be interesting next week.

[B.J]

Moved up my stop on ERS as it showed early strength, then got taken out for a very small gain after it reversed.

Saw a long upward shadow on STV, and sold it for a small gain.

Just about in all cash at this point. All these stocks reversing has me thinking day trading again.

[billyjoe]

B.J,
What do you set your initial stop at and say your $30 stock hits $33, how far do you raise the trailing stop? Have you noticed that when you make a good pick it starts up not long after the purchase, but a so so pick lingers and the longer you wait for action the less chance it is going to turn out well?
I've been stopped out of quite a few lately, but am taking small losses and got some nice gains even when my trailing stop losses were triggered. No more big losers for me unless after hours trading screws me.

billyjoe

[B.J]

Good question Billy Joe...

I usually move up my trailing stop after the first day to where I bought or slightly above. Since ERS looked particularly strong this morning, I moved it to 9.80 (above where I bought). Looking at the chart now, I may have made a mistake. Looks like I could have afforded to let it move just a little more (by virtue of drawing a line through its prior two lows), and put the stop at more like 9.60.

Still, market's starting to look a bit weak.

Agree with your observation about a stock moving/lingering correlation to strength. I've noticed that quite a bit.