• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
You are here: Home / Day Trading / Trade What is, Not What Should Be

Trade What is, Not What Should Be

February 10, 2014 by Kevin Haggerty

The SPX was -3.6% in January and has now declined -6.1% so far from the [1/15] 1851 high to the 1737.92 low last week [2/5]. The index had consolidated at the 100DEMA 1771 zone for five days in the last week of January, but obviously took that zone out last week with a double bottom of 1739.66 and 1737.92.

However, it bounced off that double bottom to close the week +0.8% to 1797.02 which is right at the 50DEMA. We got acceleration in volatility last week as the SPX finished -2.3, +0.8, -0.2, +1.2, and +1.3%, in addition to an expansion in volume, and enough headline news- flow that generated ample trading opportunities, especially for High Probability-Low Stress day traders that use specific day trading price symmetry and patterns.

In the last commentary I included some actual examples of the HP-LS defined price and symmetry strategies that stand the test of time, and that is how markets react because trading price, contracted and extended volatility have the same parameters regardless of electronic execution, algos, high frequency trading, or anything else the brain dead regulators allow to screw up the markets.

I have included several examples of basic HP-LS trading strategies from last week, and will continue to include this trading section in each of my commentaries.

In the first example you see that on 2/4 LMT made a 144.70 signal bar low o the 9:45AM bar with the one day -2.0 Standard deviation zone [-2.0 Volatility Band in my service] at 144.39 and the -1.5 VB at 145.23 This is what I call a Trap Door and it is one of the most frequent 1st hour trading strategies. LMT is an Above-the-Line Focus list stock [see previous commentary] and the entry above 145.50 on the 9:50AM bar was positive.

LMT4

On 2/6 LMT had another opening period defined trading setup as it formed what I call a 1st Consolidated Break Out [1st CBO] pattern which was also a contracted volatility pattern, and in this example it was a “31”, which is 3 bars range within the first bar, The entry B/O entry above 151 was exited below 152.25.

AXP7

AXP is also an ATL Focus stock and in this example the stock pulled back from an opening bar 86.89 high to a signal bar 86.78 low on the 10:45AM bar versus the previous 85.76 day`s high, and the 50DEMA at 85.89 The entry above 85.96 went trend up to extended VB zones so you were trade positive regardless of how you managed it.

AXP7

There is some significant time symmetry in the first week in March, and if the current SPX bounce fails and reverses down to the 200DEMA zone or lower going into that period, or else continues to advance higher into that time symmetry, we will anticipate a reversal depending on the technical O/S or O/B condition at the time. There has been a reversal of some sort at every one of these timing periods for the entire bull market since the 3/6/09 667 low.

Filed Under: Day Trading, Recent Tagged With: Day Trading, SPX, Stocks

About Kevin Haggerty

From 1990 to 1997, Kevin Haggerty served as Senior Vice President for Equity Trading at Fidelity Capital Markets, Boston, a division of Fidelity Investments. He was responsible for all U.S. institutional Listed, OTC and Option trading in addition to all major Exchange Floor Executions. For a free trial to Kevin’s Daily Trading Report, please click here.

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Swing Trading College

New Book From Larry Connors and Chris Cain, CMT – "The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk"

We’re excited to announce the release of a new investment book written by Larry Connors and Chris Cain, CMT. The book, “The Alpha Formula; High Powered Strategies to Beat The Market With Less Risk “ combines… Hedge fund legend Ray Dalio’s brilliant insight into combining uncorrelated strategies… With new, minimally correlated, quantified, systematic strategies to trade… [Read More]

Buy The Alpha Formula Now

Connors Research Traders Journal (Volume 57): 7 Real-World Reasons Why Short Strategies Should Be Included In Your Portfolio

In our new book, The Alpha Formula – High Powered Strategies to Beat the Market with Less Risk, we show the benefits of including short-strategies in your portfolio. As a reminder, building portfolios should be based on First Principles – otherwise known as truths. These truths are: Markets Go Up Market Go Down Markets Go… [Read More]

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2023 · News Pro Theme on Genesis Framework · WordPress · Log in