Breakout Trading using Time and Sales

[amit1986]

+24 cents per share (1000 shares) ZNGA breakout to new lows..

was watching the 3-minute chart...the stock was restricted, so could only short it on an uptick...at one point, it started weakening on level 2 and time and sales, so just hit the short button...it ticked up, I got filled and then plummeted down.

I'll post a chart of this trade a little later. exit was a bit pre-mature though as it is still falling.

 

[amit1986]

can't find any momentum anywhere else at the moment...so going to take a break for a bit

 

[amit1986]

still cant find anything...

 

[amit1986]

Two trades on TRIP:

1) -2 cents per share (1000 shares) breakout failed
2) +10 cents per share (1000 shares) breakout to new highs

small crumbs so far

 

[amit1986]

ZNGA breakdown trade. Based purely on Mr. Charts' setup on falling candles, retracement, and then entry. This one was slightly different as it had moved up, formed an opening reversal, broke down to new lows, minor retracement, and then another breakdown.

I don't recommend this type of a setup for newbie traders as the initial move up decreased the probability of a fall down, but for those with experience in reading level 2, it was a no-brainer short. The only tough part was the timing because the stock was restricted and thus, could only be shorted on an uptick. But as soon as sellers appeared, I hit my sell market order, got filled a few seconds later and then it simply plummeted. When it stopped going lower and started ticking higher, I got out.

Upon getting filled, if the selling pressure had stopped, I would have simply exited for a few cents per share loss.

Short Entry: 12.53
Exit: 12.29
Net Profit: +23 cents per share

 

[amit1986]

Done for the day...good trading to all!

 

[amit1986]

For those trading U.S. stocks today, check out what happened to CAR. Nice simple down trend with strong selling pressure on level 2. The stock is restricted, but I got filled on an uptick at 12.90, whilst keeping a worst case stop above the 13 whole number. It tanked and got to the 50-cent level, started showing some buying pressure and I got out at 12.48. I'll post a chart of this trade later.

+42 cents per share.

 

[amit1986]

+14 cents per share HBI breakout to new highs.

Got in early, before the breakout upon strong buying pressure. Should have taken it earlier, but waited for additional confirmation. It got to the 50 cent level, struggled, ticked down a few times and I got out. It then smashed through the 50 cent level lol. Oh well, something is better than nothing.

Once again, strong trending stock with momo...it's as simple as that.

 

[amit1986]

Nothing else so far...there have been some breakouts, but with either no momo or they have been too volatile

 

[amit1986]

It's really hard to avoid taking low-probability opportunities. CAR is breaking down further, but I'm just not convinced by it on level 2. The fact that it's restricted makes it all the more difficult.

 

[DionysusToast]

Amit - futures are pretty poor of late but have provided some opportunities today - how are stocks faring generally?

 

[amit1986]

-7 cents per share CAR breakdown failed.

really stupid trade...should not have taken that but thought I saw momo building...shorted, got filled, reversed quickly, and got out for a loss...after a really active and fast paced first half hour, the transition to a very slow market can be difficult to manage...I suppose, if anything, that loss should teach me to be more careful

 

[amit1986]

Amit - futures are pretty poor of late but have provided some opportunities today - how are stocks faring generally?

Futures have certainly been too choppy...stocks actually haven't been so bad, but I've noticed most opportunities are coming in the first 45 minutes, after which, things get very choppy and flat. A bit frustrating, to be honest.

 

[evostik]

It's really hard to avoid taking low-probability opportunities. CAR is breaking down further, but I'm just not convinced by it on level 2. The fact that it's restricted makes it all the more difficult.

Hi Amit - that is exactly my biggest struggle; forcing trades so taking low probability set ups. Trying really hard not to though - only one breakout scalp so far for me today - SEE for +8c only. I am really finding your comments helpful, thank you.

Cheers
Steev

 

[amit1986]

-8 cents per share MGA...reversal trade failed..

 

[amit1986]

Hi Amit - that is exactly my biggest struggle; forcing trades so taking low probability set ups. Trying really hard not to though - only one breakout scalp so far for me today - SEE for +8c only. I am really finding your comments helpful, thank you.

Cheers
Steev

I find it gets easier with time and experience...

 

[amit1986]

missed a nice break on AEM...was watching WCRX...

spread on AEM is much too wild and wide, so not going to take it...much prefer WCRX

 

[amit1986]

-9 cents per share WCRX breakout....getting chopped up here

 

[amit1986]

done for the day...will post an image of that CAR trade a little later. Good trading to all

 

[amit1986]

CAR trade from early morning. Not too bad of a start.

Based purely on Mr. Charts' setup on falling candles, though not for inexperienced. The shorting of restricted stocks requires precise timing, so does require a little experience in the reading of bid/ask pressures.

However, the candle preceding my entry failed to get through the $13 whole number and formed an inverted hammer. Thus, one could have kept an emergency stop above $13 as an exit.

Exit came when buyers came in below the 50-cent level.

Short Entry: 12.90
Exit: 12.48
Net Profit: +41 cents per share