Stock Market Trading Watch List For Thursday, December 15th, 2011

by David Jenyns on February 8, 2012

In this video, Michael tiny Saul, technical analyst at www.tinystmv.blogspot.com does a new Stock Market Trading Watch List for Thursday, December 15th, 2011. You can follow tiny at http and stockmarkettrendsx.com

www.guerillastocktrading.com Possibly the most well-liked intraday trading method practiced by professional stock traders is the Opening Range Breakout. Ever since its beginning, the Opening Range Breakout has mutated into a number of different strategies. We are going to define our Opening Range as the initial 30 minutes of stock trading. At the thirty minute mark, we will draw a line on our stock chart or make a yellow sticky of the highest price and lowest price during this 30 minutes. Therefore the essential basis of defining the Opening Range is that your predisposition for trading the underlying stock will be determined by where the stock is trading in relation to the Opening Range. As long as the stock or market trades within the Opening Range, it is trend neutral and does not furnish either a buy or sell signal. If the stock breaks above the high of the Opening Range don’t do anything yet. You must have a close above this range on a 5 minute chart. Provided you see a 5 minute candle breaking above the Opening Range, the next signal you need is confirmation. You need one more 5 minute bar closing above the range to confirm the breakout. Provided the stock drops below the low of the Opening Range, do not do anything. You need a 5 minute candle breaking below and you must have an added candlestick for confirmation just like a break above. The stock trading above its opening range has a bullish bias, and a stock trading below its opening range has a bearish bias
Video Rating: 4 / 5

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lionstar111 February 8, 2012 at 11:59 am

I? like your accent

tinymjs February 8, 2012 at 12:07 pm

It’s a Fibonacci? number. I picked it up a few years ago

zippyzoe February 8, 2012 at 1:05 pm

Why do you use a 89 ema? Just wondering.? Also, I like the sound effects — bip!

sibole4 February 8, 2012 at 1:34 pm

great video, i understand this is for beginners but the abandoned baby pattern was the buy at mid-point. good job with the 5 minute intervals, i never see anyone doing videos? like that.

StockTradingMaster February 8, 2012 at 1:57 pm

Thumbs? up for the effort you put in to produce this video

StockTradingMaster February 8, 2012 at 2:35 pm

@arnewaisee No. You will find that the markets move together. Even the Russell 2000 which leads does so anywhere from days to weeks and usually not minute by minute. I would consider bringing in open interest and futures if your charting software allows it. Yes to your second question. You want rising volume as it approaches the opening range high. Rising volume as the market? moves up is what gives you confidence the move will continue. Falling volume often means headfake.

arnewaisee February 8, 2012 at 3:29 pm

Hi again!

What do you think about only trading the breakouts that are correlated with the other major indices? For example: Only trade a breakout in the SP500 if also NASDAQ and DJIA are breaking out in the same direction.

Next question: Is it necessary to look at the volume when trading opening range breakouts? CMC markets doesn’t provide this for their customers =(

Thanks!?

StockTradingMaster February 8, 2012 at 3:52 pm

@nightlightview You can really get trapped. If the after market shows heavy buying, the market could gap up open and continue higher. However, it could also gap up open and then the pros fade the gap in a bet that market will return to a level more in line with its longer term moving average. After market and pre-market futures also scare me. I prefer to? use this strategy on lower volatility days.

StockTradingMaster February 8, 2012 at 4:31 pm

@requiem777 Yes and great question. I forgot to talk about that in the video darn it! I don’t use? this strategy on high volatility days (VIX). It would be interesting to adjust the time for various markets to find the optimal time frame, i.e. 30 minutes, 1 hour, etc. to profit even in more volatile markets.

StockTradingMaster February 8, 2012 at 4:53 pm

@Cameosis You know, people tell me that I can’t use Fibs for such a short time frame but I have found that to not be true. For example, the spot price of Gold today popped New York time, then did a Fib retracement? of 38.2% 3 hours later, then continued higher. Good for you for tossing some Fibs in there.

StockTradingMaster February 8, 2012 at 5:44 pm

@arnewaisee That’s what I would do. If you don’t get confirmation, the probability of jumping too early into a headfake goes way up. You have to balance the probability of a winning trade against how much profit you make from the move. I like to adjust for a higher probability of a winning trade? with lower profit on the trade if I’m correct (aka waiting an additional 5 minutes for confirmation). There’s so many ways to do this the trick for U is to find one that U can stick with.

arnewaisee February 8, 2012 at 6:19 pm

hi! thanks for the video. I’ve been practicing this strat. for a while but I’ve never used the confirmation method you’re using. Is it really possible to always wait? 5 minutes or more after every break? the rally could be declinig?

Please answer!

Best Regard

T.H.T

Cameosis February 8, 2012 at 6:21 pm

good vid. I fooled around with the opening? range and started throwing Fibonacci Retracements and stuff in there as well. Thanks for sharing

sodjs February 8, 2012 at 7:09 pm

WELL
?????ALL?STARS?????
I really thankfull for your explanation , !
I dnt know how? to manage thisss !

requiem777 February 8, 2012 at 7:45 pm

Awesome, I have been trying to work on a similar strategy, this will help me refine it. Tell me, does this strategy have a contingency for the days where the price just skyrockets or plummets in the first half hour? of trading? It would be a shame to miss those opportunities, they can be quite profitable. I guess the rule would be just to use discretion, if there’s no oscillation and it just heads one way, jump on.

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