Experienced Traders Please take a glance: Identify this system or methodology...

[dr0832]

Hi I'm currently a student and taking a course in TA. The processor of the class is a trader and gave us his an assignment to see if we could identify what he is doing in one of his trades from a while ago. He usually holds positions for a few days to 6 weeks (occasionally), with most trades being 2-4 weeks. Apparently he has been profitable for 21 years. This is one of his long trades. I have done some analysis and tried to identify what hes doing but not really sure. I know the stocks are obviously in a strong uptrend near there 52 weeks highs. I'm hoping there are some experienced traders that can help me dissect what my professors is doing. I'm not really interested in beginners comments because I would like to get this right although everyone may just be speculating anyway. You can probably just go back and look at historical charts to see this trade but I attached a chart, although open, high low close are wrong because they are of the wrong date.

Symbol:BAMM
Date of trade: Buy: 9/28/2006 @ 18.01 O:18.50, H: 18.50, L: 18.01, C: 18.34. Sell: 10/19/2006 @ 19.47 O:19.36, H: 19.71, L: 19.14, C: 19.46,

His Trading Strategy:
-----------------------------
Round lot shares usually between 500-5000
8.5% stops
20% profit target
Av. Volume > 100k
Sell if close < 10 SMA for 3 days
Volume probably plays a role
price cycles of some sort may play a role

He may use these or a variation of these, such as when bollinger bandwith contracts, and moey flow has been increasing for 3 weeks, etc, etc, but not sure:

Bandwith
Moneyflow

 

[hornblower]

Hi I'm currently a student and taking a course in TA. The processor of the class is a trader and gave us his an assignment to see if we could identify what he is doing in one of his trades from a while ago. He usually holds positions for a few days to 6 weeks (occasionally), with most trades being 2-4 weeks. Apparently he has been profitable for 21 years. This is one of his long trades. I have done some analysis and tried to identify what hes doing but not really sure. I know the stocks are obviously in a strong uptrend near there 52 weeks highs. I'm hoping there are some experienced traders that can help me dissect what my professors is doing. I'm not really interested in beginners comments because I would like to get this right although everyone may just be speculating anyway. You can probably just go back and look at historical charts to see this trade but I attached a chart, although open, high low close are wrong because they are of the wrong date.

Symbol:BAMM


Date of trade: Buy: 9/28/2006 @ 18.01 O:18.50, H: 18.50, L: 18.01, C: 18.34. Sell: 10/19/2006 @ 19.47 O:19.36, H: 19.71, L: 19.14, C: 19.46,

His Trading Strategy:
-----------------------------
Round lot shares usually between 500-5000
8.5% stops
20% profit target
Av. Volume > 100k
Sell if close < 10 SMA for 3 days
Volume probably plays a role
price cycles of some sort may play a role

He may use these or a variation of these, such as when bollinger bandwith contracts, and moey flow has been increasing for 3 weeks, etc, etc, but not sure:

Bandwith
Moneyflow

The remark , sell if close to the 10 sma for 3 days think gives it a away

not sure of the time frame he may be useing a Vargus tunnel on lower ma

chart is a bit small he may be useing delta system

delta works on time cycles , see if you can work out , the highs and lows on the chart
over the last 6 months delta can be a week or 10 days out
it may be say a 40 day cycle from top to bottom ,
have a go and see what you come up with , and report back

but you only learn if you find out for yourself

i am not going to do it for you

good luck
hornblower

 

[dr0832]

Heres a short. From my analysis I noticed the stock was hitting a 4 month resistance around $68. Moneyflow was signifcantly lower at the the time of the short than it was last time the stock bounced off the resistance even though the stock was making higher highs when approaching that resistance, which I belies is a divergence. I assume this has some to do with his shorting model. Anyone have any ideas? The trade generated about 11% in one day. I know his shorts are typpically a few hours to 3-5 days max.

Symbol: PNRA
Short sell: 10/24/2006 @ 65.92
Buy to cover: 10/25/2006 @ 60.95

10/24/2006
O: 68.23
H: 68.90
L: 65.93
C: 68.70
Volume: 1195454

10/25/2006
O:63.33
H: 65.98
L: 60.84
C: 64.41

 

[tightstops]

i didnt know there were professors that taught TA. i suppose that explains with a title like that why all the junk under that chart is there.

 

[dr0832]

yeah I don't use this crap personally, just price and volume. I think this is the last time they will have the class. Its just basic TA which is the same thing you can read in a book and all the stuff that doesn't work. It may have worked in 1970 but it doesn't anymore. Nobody else in the class has any idea about trading.

 

[Paul71]

Tight stops, you are a novice.

 

[tightstops]

im still learning but novice is the wrong word and when are you going to ask me that question they get here in 20 minutes