104 Technical trading experiments by HUNTER

Thanks friends I will just keep the data...

Anyway by now I am a longterm investor and not a trader. I am too old to trade though I keep records.

Wonderful!
Thank YK, for being the volunteer.

As the market is expected to take a fresh direction starting from next week, let's plan to take our first trade there.

So we need to quickly decide on the trading 'set up'.

Please contribute with your suggestion if you have.
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I am thinking of following a customized strategy based on; Elliott waves.

https://www.investopedia.com/terms/e/elliottwavetheory.asp

In order to validate and improve the signals given by Elliott waves, I would like to combine it with some other parameter.
(Any guesses you like to make?)

I would like to go with Pivot Points

HUNTER wrote:Wonderful!
Thank YK, for being the volunteer.

As the market is expected to take a fresh direction starting from next week, let's plan to take our first trade there.

So we need to quickly decide on the trading 'set up'.

Please contribute with your suggestion if you have.
--------------

I am thinking of following a customized strategy based on; Elliott waves.

https://www.investopedia.com/terms/e/elliottwavetheory.asp

In order to validate and improve the signals given by Elliott waves, I would like to combine it with some other parameter.
(Any guesses you like to make?)

Thanks @LSE for the suggestion; I know that is your favorite.

I am also thinking of using Pivot points / support resistant levels to define the SL and TP targets.

In addition to that, I am thinking of a signal outside the price movement to confirm the signal.

Will talk about that in coming days.

I have read about darvas box therory. But I dont know how to use it.. Hunter can we use it here?

Topcat wrote:I have read about darvas box therory. But I dont know how to use it.. Hunter can we use it here?

Certainly, what I am thinking is, in a way, very similar. It might work very well in bullish market conditions.

Let me explain the suggested trade set up:

Primary indicator - price pattern in line with an Elliott wave expecting to compete the 5 wave pattern.

Validation of the strength of the movement - by contrasting high volume.

In summary: we will look for the initial stage of the Elliott wave formation with high volume of trades.

Illustration of an Example:

Following is the theoretical Elliott wave formation pattern.




To explain this in a real world situation, I will take recent chart of AEL.N.

Following is the AEL.N one year chart.



When the Elliott wave is imposed on AEL chart, it would look something like the following.



When the momentum is confirmed by high volume, it would look like the below.
(Posted below as it seems no more pics allowed in this post)

In this set up:
Entry level is around 15/-
SL - 13/-
TP near 20/-

So the expected profit would be above 30%
Risking about 15%

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Anyone already traded this...?

Chart with volume:

Very interesting Hunter.. So we buy at the begining of 3rd wave if volume indicator confirm it and sell after the 5th waves completed?
One more suggestion. Looking at this I think its better to have a trailling stop loss.. Can we do that?

Topcat wrote:Very interesting Hunter.. So we buy at the begining of 3rd wave if volume indicator confirm it and sell after the 5th waves completed?
One more suggestion. Looking at this I think its better to have a trailling stop loss..  Can we do that?  

Thanks for your interest.

* There is no hard and fast rule for buying or selling; but if you're new to trading, good to follow strict rules until you become 'instinctively' confident of your actions.

It is like....; when you drive in a highway at 100 kmph, you 'instinctively' know when to start turning in a bend, when to slow down, when to accelerate when overtaking etc.
But if you're still learning to drive, you better drive slow under strict rules.

* In my view, trailing SL is good for experienced traders; if you're a novice, have strict levels define at the beginning of the trade (don't change anything on the way).

* Yes, as you said, buy at the start of wave-3; TP at the top of Wave-5; SL at the bottom of Wave-2.

PS: If you're experienced, you'd be able to buy at the mid of Wave-1 to maximize profits. May be buy at different level as well with confirmation signals.

However, in this experiment, we will stick to pre defined strict rules.

Good time to start our experiment...

Interesting thread. thanks hunter.

So, if there are no any other suggestions on the trading set up; shall we proceed with what I suggested?

If so, let's take our first trade in coming days.

Here is another example; a set up we might have just missed (or may be not missed by some of you).

OK, let's get down to water now!

I see the possibility of trade set-up formation in following shares within next few days.

Do you have any preference, which one we should take this week?

1 AEL.N0000 Access Engineering PLC
2 CITW.N0000 Waskaduwa Beach Resort PLC
3 SIRA.N0000 Sierra Cables PLC
4 KZOO.N0000 Kalamazoo Systems PLC
5 CLND.N0000 Colombo Land & Development Company PLC
6 PARQ.N0000 Swisstek (Ceylon) PLC
7 GHLL.N0000 Galadari Hotels (Lanka) PLC

I prefer AEL.N0000 since we have already identified the bench marks

HUNTER wrote:OK, let's get down to water now!

I see the possibility of trade set-up formation in following shares within next few days.

Do you have any preference, which one we should take this week?

1 AEL.N0000 Access Engineering PLC
2 CITW.N0000 Waskaduwa Beach Resort PLC
3 SIRA.N0000 Sierra Cables PLC
4 KZOO.N0000 Kalamazoo Systems PLC
5 CLND.N0000 Colombo Land & Development Company PLC
6 PARQ.N0000 Swisstek (Ceylon) PLC
7 GHLL.N0000 Galadari Hotels (Lanka) PLC

LSE wrote:I prefer AEL.N0000 since we have already identified the bench marks  

OK Then AEL.

Considering the Medium term Elliott pattern, we can buy now at 22~24/- with Stop loss=19/-, Take profit at 29~30/-.
May need to hold until March~April 2020 for TP.

Here is the chart.

i prefer KZOO Because it,s investing in Quoted company with positive market trend Value Increasing
Ex:-
Their Portfolio Having CHL 400 000 HAYL 330,000

Onal is also it's associate company

AEL is ok.

Dear HUNTER,

Thank you very much for your quick response. This is great. Your target is intercept with my predicted benchmark values for AEL... This is the beauty of TA... Let's see how AEL is going to reach our target in coming weeks

https://forum.lankaninvestor.com/t11478p50-ael-n0000#102757

HUNTER wrote:

LSE wrote:I prefer AEL.N0000 since we have already identified the bench marks  

OK Then AEL.

Considering the Medium term Elliott pattern, we can buy now at 22~24/- with Stop loss=19/-, Take profit at 29~30/-.
May need to hold until March~April 2020 for TP.

Here is the chart.

AEL Ok with plenty of liquidity.

ගෝඨා සෑර් බයිපාස් එකකුත් කරලා ඉන්නේ . මාර්තු වෙනකන් සුවර් නැ ..... බැරිද වෙන එකක් ?

I'll join next week pick

Now wht to do? Game is on? Shld we start buying ael?