JNJ Chart

chump

Senior member
2,212 274
I don't have a position. This is just a stock from a watchlist I am putting together. My first attempt at a papertrading a plan to see if my simple rules work out.

If the chart doesn't show,apologies,I have not uploaded one before.
 

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Red Eye

Junior member
13 0
Hi Chump
Wondering if you could tell me what broker you would reccomend?
I would like to practice with US stocks so a broker with a demo account would be good. Also real time prices, charting, TICK + TRIN would be great!
 

chump

Senior member
2,212 274
Red Eye,
To get answers from the most experienced members post this question below under Platform ...Direct Access & Brokers. You will get good directions.

I only know two possibilities and that is Interactive Brokers and DAE.

Hope that helps.

Cheers
 

nomish

Junior member
42 0
We have seen a pull back in the U.S market these last few weeks. It was over due from the run up during december.

My view on JNJ is that it may be worth putting some money into it as its under the 30day movign avg and is trending up. STO has some more work to pull back a bit. I would wait to see how good or bad firday unemployment figures/rate is as that will set the direction for the coming week.

and in terms of pracice trading, there is nothing like the real feeling of entering, monitoring and closing orders. emotions kick in and no book or paper trade will teach u that.
 

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chump

Senior member
2,212 274
I have not got a clue what this stock will do and I certainly don't know what impact good or bad news is going to have on it.

However, within my simple rules it does not matter.

Not on the chart are price action signals that this stock was running out of sellers. It was lagging 6 months behind in this rally for no particular fundamental reason other than it isn't known as a spec stock. Arguably it will benefit if the market gets edgy because it is a defensive stock.

It made a HH HL and then on 18th Dec gave us a very low risk set up bar to use . Initial risk was barely 50 c with plenty of fresh air above up to point 1.

If it can take out the latest HH there is again fresh air up to $58-59. In that event the stop would be shunted up under the new HL and so forth until the trade exits with a hit on the stop which will be moved progressively nearer to the current price if the trade is lucky enough to get on to a 3rd HH HL phase.

If the current retracement makes a close below the fib .68 the stop will be moved up under the low of that day. If taken out I would be looking to see if there was a low risk rentry available.

That's the rules besides which I like their Timotei ;)

I think we all know the limitations of papertrading,but if traders like Richard Wyckoff recommend it has a means of developing skill I wouldn't argue with that viewpoint.

Cheers
 
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chump

Senior member
2,212 274
"Well as long what u do makes u money then it doesnt matter."

This papertrade might make money,but I don't know if it would make money on a real trade. I might collapse into a 'bag of jelly' and flog the lot off at the sight of the first retracement. Hope not,but who knows.

Cheers

Steve
 

chump

Senior member
2,212 274
Update and the story

Newbies in reading this bear in mind I know little if more than you. Experienced traders by all means offer insights/corrections.

A trade should have a story that makes sense. In this updated chart I narrate what I think the story is.

Back in November 2003 this stock ran out of sellers and volume maybe shows us a first indication that Institutions are getting interested. Maybe managing their risk. Some Swingers sense a short term low risk punt.

Their profit taking forms a retracement. However ,the keen of eye stock watchers notice the new higher low and understand this means accumulation and we see more of this in Dec and again volume may indicate Institutional activity.

Psychologically we now have more people paying attention to this stock and again the swingers have a low risk chance to trade to point 1 knowing their may be Institutional activity to cover their shorts.

Now when accumulation takes out point 1 swingers are back in place and so on and so forth.But,we now have some players in looking at longer timeframes so we are building support.

The curent retracement should see some of the 2;1 ; 3:1 players profit taking,but if there is continuation to be had we should be seeing more accumulation. Possible Institutional activity,but who knows could just be general public position players.

This chart has two sets of fibs.

At this point the one to the left I would use has a stop if I want to stay on the ride until I see the Institutions have stopped buying .

The one on the right I would be using if I was short from the 'new high'. I put it that way because the new high is not confirmed until it is taken out .

I could of course give you a story that turns this on it's head :)

Cheers
 

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chump

Senior member
2,212 274
Stop moved up today still don't know what this is going to do,but it's closed below a 0.618 retracement so it will either prove the position right by moving up or it will take out the stop and probably go on to break the 'new' trend. That's all I need to know.
 

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