That is because today the high of TZA reached the 89 exponential moving average which to me is a strong resistance.
I will rather lock in profit now and see what happen tomorrow. I prefer to protect my profit more than worrying about “missing” the gap up tomorrow since a gap down will mean giving back what I make today.
See below TZA daily chart. The dash white-line is the 89 xma.
Good Hunting!
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Took some profits on my TZA calls but kept my position in the stock. Market setting up for major pain in the next month. Put some back on after a bounce.
Maybe your TZA stock position will do well in the morning; but I believe I’ve plenty of time to get back in before the next month major pain…
Let’s see what the market will bring forth tomorrow. Later.
Can’t help but notice that fairly recently you have begun to display a couple of Bill Williams’ indicators.
Namely …
“Alligator” … a group of three (13 + 8, 8 + 5, 5 + 3) forward Displaced MAs !
AND
“Awesome Oscillator” … a 5/34 MACD Histogram of H+L/2 !
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Do you actually USE and FOLLOW these indicators ?
Are they just “lines on chart” … intended to make it appear that you actually know what the fuck you’re talkin’ about ?
I have NEVER seen you speak of these indicators … in an effort to show that you have a BASIC UNDERSTANDING of them … or, that you have ANY feel for how to use them !
Care to shed light on how YOU use them ?
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So you know … I AM well familiar with these indicators … so, DON’T try to BULLSHIT me with a GOOGLE reply !
I wanna know how YOU use these indicators … and be specific !!!
TIA
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Hello Alf44,
Yes, they are Bill Williams’ indicators which I recently decided to apply to my charts after re-reading Bill’s book “Trading Chaos”. Surprisingly, this time around, I find Bill’s way of thinking very much compatible with the way I traded these days.
As to how I use it and before I explain it; what’s up with the attitude about BS’ng and with BIG CAP too! Did I owe you a test I didn’t know about?
But for the sake of clarity and since you asked, I’ll answer.anyway.
If you read my past posts, you know I like to add to my position when the price keep going in the direction I’m trading. Thus, if I’m long, I like to add when price keeps on going up. Before Bill’s book, I usually add when prices take out the previous day high or intra-day high. What Bill’s system offer is another alternative system for me to add to my position.
In practice, I focused more on using Bill’s fractal buy or sell to “filter” my additional buy/sell to my position instead of just simply buy any intra-day high (if long) or sell any intra-day low. (if short). Yes, it is the 5 bar system with 2 lower high to the left and 2 lower high to the right if you are looking for a fractal buy. I don’t use the AO too much ’cause by the time I looked at it, more than 3 bars have already changed color so I felt like I missed the buy (or sell) already.
As to the alligator with the 3 displaced moving averages, I do use the bullish/bearish divergent bars as counter-trend trade and also as a signal for me to take profit. Sometimes I do not necessary heed the 3 minimum bars requirement outside the alligator before considering the counter-trend. Sometimes, I will use a candlestick pattern instead of Bill’s divergent bar. I also prefer to buy when prices are above the alligator’s mouth and sell when price are below alligator’s mouth. Overall, I like the alligator idea because it keeps me away from non-moving stocks when they are inside the alligator’s mouth.
So, if anyone is interested after reading this; please get Bill Williams’ Trading Chaos book. You can also get the video made by Bill’s daughter, Justin Williams-Lara from Traderslibrary.com.
Hope it helps.
… overall, decent answer, zen !
I DO like some of Williams’ stuff !
Always been a bit of a fan of Displaced MAs (guess that’s why the “Alligator” appealed to me).
Think about … either in addition to “AO” … or, in place of “AO” …
…an LBR 3/10/16 Oscillator (simple MAs) … used in conjunction w/ROC(2) for timing entries /exits !
I use it with some success ! fwiw
I DO LIKE the “divergent bar” idea … as well as Williams’ “Fractal” approach !
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GLTY !!!
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alf44, the LBR 3/10/16 Oscillator is intriguing. The signal cross comes very close to AO 3 bars color change! It is much easier for me to simply look for a signal cross than to count the 3 AO bars.
Regarding the ROC(2), do you use it to confirm with LBR before you take a trade?
Thanks for the add’l insight!
zen,
Sorry for the late reply.
Hard to know where to begin wrt my use of 3/10/16 & ROC2.
I have a number of ways I use these 2 indicators (together and stand alone).
I will say that simple “signal crosses” of fast line vs. slow line is NOT what I spend the majority of my time looking at with these 2 indicators !
—
Divergences and what I call Slope Opposition are 2 of my favs. There are some other (closely guarded) nuances. fwiw
Hard to explain w/o illustrations (ie. charts).
GLTY !!!
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Hey alf44, thanks for replying.
I spent part of the today watching the LBR 3/10/16 in the intra-day charts and I could tell that the biggest benefit is in the divergence area.
Your favorite usage of this indicator for divergences confirmed my observation.
From this point, you’ve given me enough info to take advantage of this LBR indicator going forward.
Thanks again for bringing it to my attention.
GLTY too.
“From this point, you’ve given me enough info to take advantage of this LBR indicator going forward.”
—
Actually, I haven’t even begun to scratch the surface !
Not even close !!!
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Alf44, I don’t doubt you have a lot more “closely guarded” ideas on how to use this indicator or other indicators you have under your sleeve.
If you are willing to write a big post/comment to share your knowledge, I’m all ears to tackle what you know; nevertheless, I opt to keep things simple.
Taking a fractal buy/sell is simple, Taking a counter-trend divergent buy/sell is simple; identifying price either above, below, or inside an alligator is simple. Counting AO bars is simple but a pain-in-the-ass when you are watching multiple screens and stocks. Looking for divergence on the LBR is simple.
Keeping things simple make my trading simple. The only thing left to do is to get myself out of the way and take the trade.
Based on our discussion so far, you reminded me of a professor who know his materials inside out. Meanwhile, I’m quite content to make do with what I know so far.
But I’m always open to new ideas; therefore If you like to share them, I like to hear them
Thanks again. 🙂
Alf44, if you happen to be reading this reply, then let it be known that your “Not even close” comment has re-ignited my curiosity in LBR’s deep knowledge of trading techniques. So, I brushed the dust off the book titled “Street Smarts” and other reading materials from Linda Bradford Raschke to review some of her works.
Lo and behold! I’m now like a kid in the candy store once again!
Funny how old information can shine so bright when you are ready for it. Of course, I’ll select only the ones that fit my need to keep it simple. I’ll definitely replace the Bill’s AO with LBR 3/10. I see now what you mean about scratching the surface regarding the 3/10 since LBR provided more in depth of the subject. Once I understand the nuances covered by LBR and become familiar with it thru habit of using it; it will become simple.
Well, a BIG THANKS to you for waking me up on the subject!