Technical Indicators

Technical Indicators – Williams %R Indicator

December 31, 2010

There are some technical indicators I use every day. The Williams %R is one of them. I’ve modified the base period to fit the stock (ETF) that I follow and the ; that being the Q’s (symbol: QQQQ). One more modification that I’ve made is that rather than just using the -20% and -80% as breaking points I also use the middle line of -50% coupled with different time periods to indicate direction and momentum. Since the base period varies for every individual stock I’ll let you figure out what base period I use for the Q’s. As a clue, I call it WD50.

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Deja Vu, Deux Do

October 1, 2010

Yesterday I took on the strategy that if the market was up at the open I would buy the downside in the form of more puts to compliment the ones I left on overnight. Today the same strategy gave me the same results.

I don’t like leaving an open position on overnight but it seems that it seems to be working. You may want to learn about the technical indicators I’m using. I’m not going to give you all the information. Just consider this a homework assignment.

The two indicators that seem to be playing out well in today’s market are “Polarized Fractal Efficiency” and “TRIX”. You may be able to learn of these at Stockcharts.com. They have an awesome chart school, free of charge.

I’m using them on a daily chart and comparing the two’s interaction. Very interesting.

Got questions? Just ask.

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Quick Update – 8/30/10

August 30, 2010

Here’s a quick update to today’s trading. Just an FYI.

I started today by watching the futures, which were up greatly over the weekend. When pre-market trading opened I was surprised to see that this was no longer the case. Since not everyone gets the news at the same time I suspected that the market could go up before coming back down. I watched using a 5-minute chart. My technical indicators showed me the proper entry time and they will also point the time out, which hasn’t happened yet. Below is the trade I entered.

587 08/30/10 10:14 AM BTO 100918P45 QQQQ SEPT PUT 45 200 $1.42 ($28,400.00) ($250.00) ($28,650.00) $294,477.50 14723.88%

Update: 3:10pm I decided, against my general trade rules to keep this trade on until tomorrow morning. Based on a daily chart my trade should be good until the market opens tomorrow. The put was worth $1.80 at the close which amounted to a 24%+ gain.

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