Saturday, November 25, 2017

Friday 1st Hour Trading Map of the Indexes and Gaping Stocks

Starting Monday will begin posting a basic Map for navigating the trading day based off the first hour off trading day. The map is aimed at the indexes and gaping stocks to watch. Goal is to have up between 10:20 and 10:40am east coast time.
In the past used a similar after-market format but became way to time consuming/hassle as once I stop trading I dont revisit the markets until the next morning.  After a few inquires about more posting I came up with this simpler concept while the market is open. Should be more relevant to traders, easier for me to post on a more consistent basis and have placed into my daily morning trading routine.
- Below is sample from Friday.

Today's Basic Trading Map Based Off the 1st Hour of Trading

Indexes (spy,qqq,dia)

    • Daily Trend: Long All
    • Today's Gap, Trend, Range: indexes trading in a narrow range, trend is long,  Only the QQQ filled their gap and odds foresee the gap's not filling today. Foresee a narrow trading range with market closing early (noon east coast time) with R2 pivot on Spy as a maximum range for the day.
    • TICKS (nyse): Neutral - range between the meat of 600 and -600 
    • Trading Notes: Longs only - for a 30 or 60 minute breakout and or pullback to 20sma with secondary support. Favor the DIA and QQQ over the Spy for a 30 minute BO with more room to run until next resistance. Enter high, stop low of day 1-1 risk.
    See Below Support/Resistance Lines and Areas to Watch
    (white dotted line 5sma, red dotted line 20sma, doted lines pivots, Green & Red Sold lines previous days High and Lows, yellow dotted previous unfilled gaps)
    Gaping Stocks to Watch
    • RIOT
    • FLXN
    • SD - pullback
    Weekly Chart Notes for longer term plays
    • Watching ASX, SCAP, AXTA and BECN

    * The Index setups use larger stops with a conservative 1-1 risk/reward ratio that trades with the trend and odds. RED X shows possible entry points and area to place a stop. Can fine tune as see fit. Close out at end of day or move stop to even at .75R
    * Beyond searching for ISB on a 30 minute chart can use this simple stock setup for a conservative 1-1 risk/reward ratio. Look for the first pullback near the  30 minute 5sma with a stop placed under the 10sma. Can add fib lines using today's high and yesterdays close the 38.2, 50 and 61.8 fib lines as secondary support when entering. (can also use the 5 minute chart using 25sma to enter and 60sma for stop) Can fine tune as see fit. Close out at end of day or move stop to even at .75R.
    * Secondary support is support/resistance line that supports the moving average - (fib lines, previous day High or low, pivots)

    TRADING PLANS 




    * The market direction refers to when the trade was entered. Up is all three SMA trending Up, down is all three are trending Down, Mix is mixed or choppy market to then refer to 200SMA for preferred market direction)

    * You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.

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    Disclaimer

    I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE