May 30th, 2008
to Successful Stock Trading Combining Company
Fundamentals with Chart Technicals"
Comments or Questions (TSM Service, Methodology, Performance or Your Success Stories) Go Here - (firstname.lastname@example.org)
- Weekly TSM Qualified Stocks -
80% of the time AAPL makes its intra-day high or low in the first hour of trading;
the 1st hour's high and low close (on a 1-minute chart) act as support and resistance;
the 70 period (again on a 1-minute chart) Commodity Channel Index (a measure of the extent of deviation from the mean) provides high probability entries;
the intra-day range is far greater than the inter-day range.
The TSM approach to day trading these stocks uses ~$100,000 to buy up to 1,000 shares then looks to win ~25 cents ($250) continuously after a high probability (CCI minimum below -140) is identified. The 8-period moving average is the buy target. The following two charts demonstrate the approach. Seven trades were executed in the first when the CCI edge (green areas) presented itself to generate a $1,215 profit (~1% return on our $125,000 trading account) for the day.
The next day, the same approach was used for POT in 10 trades to generate $1,593 (~1.3% return on our $125,000 trading account) in profit.
Finally, look at AAPL's chart on 04/15/08 and the opportunity that presented itself.
Similar data for AGU show that 95%+ of the time the high or low of the day is found in the 1st hour of trading. The following chart tracks AGU through 59 trading days in March through May of 2008 shows the high (red H) and low (blue L) intraday trading points:
If you're going to day trade like this, get to know a few very liquid stocks well and develop trading edges.