The Art of the Entry

Here's an example of how I like to enter trades.  This example uses the Eur/Usd.  I went long the Euro yesterday and added a piece to the trade today.  Here's a screen shot of the 1 Hour, 15 Minute and the 5 Minute charts for the pair, with my TLT Trender v2 signals:

I initially went long with the buy signal, the green bars, on the one hour chart (the chart to the left).  Because a buy signal is in place, I then will look at smaller time frames for another entry signal in the same direction.  I got one this afternoon.  The 15m chart (upper right) gave some yellow bars.  That is the equivalent of the hammer on the gun being pulled back..just needed a signal to pull the trigger.  The signal will be the next buy signal on the 5 minute chart (bottom right).  As you can see, it came about 45 minutes after the first yellow bar on the 15m chart. 

Now the positions are on and they will be trailed with stops on the hourly chart.  Notice that I didn't go into the mechanics of what the green, red, yellow and blue bars are and how they work.  It's enough just to know that Green is buy and Yellow and Red are sell signals.  The concept that I want to get across in this post is the idea of using the Buy/Sell/Buy pattern with different time frames.  Have a buy on the higher time frame, with a sell signal on the intermediate time frame and then buy on the next buy signal within the short time frame.  You can use whatever type of indicator that you like, as long as you're familiar with it and have a good grasp on how to use it.  The Buy/Sell/Buy pattern can allow you to enter long or short (Sell/Buy/Sell) positions in spots where risk can easily be managed...and that is half the battle.

Hope everyone has a Happy New Year!

TLT

I Need a Hero

Energy has been gaining momentum and I'm starting to see some substantial price action in many of the names that I follow.  One in particular is Hercules Offshore...with the ticker HERO.

I'll be waiting for a substantial pull back before looking to get in this stock.  You have to find a point where you can manage risk, and I don't see that right now.  Energy is lighting up and several names on my watchlists are really moving including:  PDC, EP, CWEI, HAWK, ATPG and GEOI.

Have a great Wednesday!

TLT

Take a Ride on the Reading Railroad: RDI

Okay, it's not a railroad but it is a fantastic trade idea.  It also happens to be a play on the Australian Dollar, but I'll let you dig into the fundamentals to figure that out.  Here's the trading plan:

Entry zone, stop loss, and profit targets are laid out.  I'm already in this one and I'll ride it to the profit targets, taking 1/3 off at each target, unless there's a close below the V-Stop..in which case I'll close the position.

Happy trading!

TLT

Risk Trade Back On

I'm back...been on a hiatus from posting for the past month.  After running my weekly numbers, it is very apparent that the "Risk Trade" is back on.  Below is the top half and the bottom half of the 30 ETFs that I run a relative strength analysis on.  This is what you want to see if you're long stocks.

Top Relative Strength ETFs

Bottom Relative Strength ETFs

As I said, this is bullish.  If you're not long, you should be looking for entries.  Find the top performing sectors (Materials, Energy, Industrials) and start watching the strong performers in these groups.  Posting will pick up on a more regular basis now so stay tuned.

TLT