Thanks....which is why 99% of traders (newbies esp.) will, at best, ignore it or worse, disparage it
good work, keep it up,
I am looking for a clearly trending stock which has been trending for a while. In other words it might have been range bound initially but is then trending.Hi Richard,
Thanks for your time. when you run a scan, what specifics are you looking for. Must the stock have been trending strongly most of the day. Or will you enter on a pull back or retracement?
Do you scan for a low ATR stock first or see what it looks like after?
Also on the time and sales ( I don't have L2) , do you filter for large orders coming through, would that be an initial sign of movement or just and increase in the flow of orders hitting the book?
I am looking for a clearly trending stock which has been trending for a while. In other words it might have been range bound initially but is then trending.
I do enter some of my other set ups on retracements. Those are beyond the scope of this thread.
I see what ATR looks like after I've found the trending stock and adjust position size accordingly. However I much prefer stocks where level 2 and T&S are actually readable, sometimes they aren't, sometimes they are. As a rough rule of thumb the lower the ATR the more likely they are to be readable, but that really is a rough and ready guide. I often trade high ATR stocks if I can read level 2 and T&S on them.
How I use level 2 and T&S is beyond the scope of this thread, but large orders don't usually play a significant role as they tend to be broken up in numbers and time to hide them. Block trades can be a little different.
Hope that helps,
PS Some trades are on stocks which I've chosen for other reasons, not scanning, like the EXM example earlier.
The entry and exit remain the same.